INTRADAY TECHNICAL ANALYSIS 10 NOVEMBER (observation as of 05:30 UTC)
[EURUSD]
Important Levels to Watch for:
- Resistance line of 1.16542 and 1.16918.
- Support line of 1.15326 and 1.14950.
Commentary/ Reason:
The euro slipped slightly against the dollar on Wednesday, to trade at $1.15915, though still maintaining a three-day gain that has brought it close to the month’s high of $1.16162. The EUR/USD buyers are making moderate attempts to recover from the 1.153 support line.
The EUR/USD was weighted after German trade data today showed German Sep exports unexpectedly fell, though declined was limited after data of German ZEW survey expectations of economic growth unexpectedly rose stronger than expectations of a decline.
Market analysts now awaited Wednesday's U.S. CPI data. A stronger-than-expected reading would rekindle talk of the Federal Reserve raising interest rates sooner than expected.
[USDCHF]
Important Levels to Watch for:
- Resistance line of 0.91499 and 0.91714.
- Support line of 0.90805 and 0.90590.
Commentary/ Reason:
The dollar was higher against the Swiss franc, rose 0.1% and trading at 0.91244.
The greenback was strengthened amid lingering inflation worries. The U.S. consumer price is awaited, due later today.
The USD/CHF pair continues to stall between. Heavy selling pressure in recent trading suggests that bearish sentiment is dominating yet, a break has not materialised.
[USDJPY]
Important Levels to Watch for Today:
- Resistance line of 113.940 and 114.556.
- Support line of 112.708 and 112.092.
Commentary/ Reason:
The dollar was steady at 112.858 yen but traded near a one-month low after dipping to 112.725 on Tuesday for the first time since Oct. 11.
The USD/JPY dropped as the yen strengthened on lower T-note yields after the 10-year T-note yield dropped to a 6-week low of 1.412% on Tuesday.
The softer global yields that are driving the Japanese Yen higher. This move is being fuelled by traders paring back on some of their aggressive bets on imminent higher interest rates.
With the jobs data out of the way, the focus now shifts to U.S. inflation numbers. Data on consumer prices on Wednesday could sway traders’ thinking on the outlook for interest rates.
The USD/JPY looks set to continue the bearish move. Momentum indicators have well-established downward trajectories with RSI entering bearish territory and MACD fast approaching the zero line.
[GBPUSD]
Important Levels to Watch for:
- Resistance line of 1.36954 and 1.37810.
- Support line of 1.34186 and 1.33330.
Commentary/ Reason:
Sterling was last trading at $1.35537, up 0.01% on the day. Sterling, hammered last week in the wake of the Bank of England’s surprise decision to keep rates on hold, has been stable this week and up from Friday’s more than one-month low of $1.34242.
Although escalating Brexit concerns take the wind out of GBP/USD brief recovery.
In the meantime, investors await the UK preliminary estimate of Q3 GDP growth on Thursday, as well as U.S. consumer price data on Wednesday.
