Market Forecast 10/17/2017
EUR/USD might soon start an upside recovery, GBP/USD is gaining upside momentum and USD/JPY is back in the bullish zone above 112.00.
EUR/USD Forecast – Euro To Recover Soon
- The Euro declined recently and moved below 1.1780 against the US Dollar.
- There is a major declining triangle forming with current resistance at 1.1780 on the hourly chart of the EUR/USD pair.
The Euro declined recently and moved below the 1.1800 and 1.1780 support levels against the US Dollar. The EUR/USD pair traded as low as 1.1754 and is currently attempting an upside correction.
On the upside, the pair needs to clear a major declining triangle with current resistance at 1.1780 on the hourly chart. If the pair fails to move above 1.1780-1.1800, there are chances of further declines toward 1.1740 in the near term.
GBP/USD Forecast – Cable Gaining Upside Momentum
- The British Pound is back in the bullish zone above 1.3240 against the US Dollar.
- The GBP/USD pair is currently attempting an upside break above a descending channel with resistance at 1.3280 on the hourly chart.
- Today in the UK, the Consumer Price Index for Sep 2017 was released by the National Statistics.
- The forecast was slated for a 0.3% rise (MoM), and the actual was in line with the forecast.
The British Pound started a nice uptrend from the 1.3120 swing low against the US Dollar. The GBPUSD pair traded above the 1.3320 level and later started a short-term correction.
It tested the 50% Fib retracement level of the last wave from the 1.3120 low to 1.3335 high and found bids. The pair is now moving back higher and currently attempting an upside break above a descending channel with resistance at 1.3280 on the hourly chart.
It seems like the pair might succeed in breaking 1.3280 and 1.3300 for a retest of 1.3335. Buying with a break above 1.3280 can be considered with a stop below 1.3250.
Today in the UK, the Consumer Price Index for Sep 2017 was released by the National Statistics. The forecast was slated for a rise of 0.3% in the CPI compared with the previous month.
The actual result was in line with the forecast as the CPI increased 0.3%. In terms of the yearly change, the market was looking for an increase of 3%, and the actual was similar. However, Sep’s reading was more than the last +2.9%. The report added that “the main contributors to the increase in the rate were rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago”.
The overall result was positive and could help GBP/USD is gaining strength above 1.3280 in the near term.
USD/JPY Forecast – US Dollar Back above 112.00 Vs Yen
- The US Dollar found support at 111.64 against the Japanese Yen and started an upside move.
- The USD/JPY pair broke a bearish trend line at 112.00 on the hourly chart.
The US Dollar after consolidating above the 111.60 support against the Japanese Yen started an upside move. The USD/JPY pair succeeded in gaining strength above 111.80 and a bearish trend line at 112.00 on the hourly chart.
The pair is now struggling to break the 50% Fib retracement level of the last decline from the 112.81 high to 111.64 low. Once buyers succeed in pushing the pair above the 112.30 level, there can be a solid upside move towards the last swing high at 112.80.
Overall, the pair remains buy near 112.00 as long as there is no close below 111.65.
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