Market Forecast 10/24/2017
EUR/USD is about to gain traction in the short term, GBP/USD is struggling to clear an important resistance and USD/JPY remains in a solid uptrend.
EUR/USD Forecast – Euro To Gain Strength Soon
- The Euro after finding support near 1.1730 against the US Dollar started an upside move.
- There was a break above a bearish trend line with resistance at 1.1745 on the hourly chart of the EUR/USD pair.
- Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 (Prelim) was released by the Markit Economics.
- The forecast was slated for 57.8, but there was a rise to 58.6 from 58.1.
The Euro declined recently and moved towards the 1.1720-30 support area against the US Dollar. The EUR/USD pair traded as low as 1.1723 and later started an upside correction.
During the upside, the pair was able to break a bearish trend line with resistance at 1.1745 on the hourly chart. It has opened the doors for more gains and the pair might continue to move higher towards 1.1780-90 in the near term.
Euro Zone Manufacturing PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 (Prelim) was released by the Markit Economics. The forecast was slated for a decline from the last reading of 58.1 to 57.8.
The actual result was above the forecast as the Euro Zone Manufacturing PMI is expected to increase to 58.6 in Oct 2017. On the other hand, the Euro Zone Services PMI is forecasted to decline from 55.8 to 54.9 in Oct 2017.
The overall result was positive and might help EUR/USD to gain strength above 1.1770 in the near term.
GBP/USD Forecast – Cable Struggles to Break 1.3225
- The British Pound is trading in the bullish zone, but struggling to break 1.3225 against the US Dollar.
- The GBP/USD pair is currently trading near a bullish trend line with support at 1.3190 on the hourly chart.
The British Pound traded higher from the 1.3085 swing low against the US Dollar. The GBPUSD pair traded above the 1.3200 level, but struggled to break the 1.3225-1.3230 resistance.
There were 2-3 attempts to break the 1.3225 resistance, but buyers failed to gain traction. At the moment, the pair is correcting lower and trading near a bullish trend line with support at 1.3190 on the hourly chart.
If sellers manage a break below the trend line support at 1.3190 and the 100 hourly SMA, there could be a downside move towards the 1.3150 level in the short term.
USD/JPY Forecast – US Dollar Remains in Uptrend
- The US Dollar is in a solid uptrend above the 113.20 level against the Japanese Yen.
- There is a monster bullish trend line forming with support at 113.18 on the hourly chart of USD/JPY.
The US Dollar is following a nice bullish path and recently traded as high as 114.07 against the Japanese Yen. Later, the USD/JPY pair started a downside correction and moved towards the 38.2% Fib retracement level of the last wave from the 112.28 low to 114.07 high.
On the downside, there is a monster bullish trend line forming with support at 113.18 on the hourly chart, which is aligned with the 50% Fib retracement level of the last wave from the 112.28 low to 114.07 high.
Overall, the pair remains buy on dips near the 113.25-18 levels as long as there is no close below 113.00.
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