In this morning’s video for October 24, 2023, we start your forex trading day with a technical look at EURUSD, USDJPY, and GBPUSD. What are the biases, risks, and targets for these three major currency pairs?
EURUSD: The EURUSD trended higher in early trading yesterday and today, trading to its highest since September 20th in the process. The high reached 1.06935, just short of the natural resistance level at 1.0700. Some weak PMI data pushed the bias back to the downside, especially as some technical breaks occurred on the 5-minute chart (see video). Since the transition, the price has trended further down, returning to the support between 1.0608 and 1.0616. The buyer will see the area re-enter the market. If so, a break above the October 12 high of 1.06395 would be needed to give bond buyers more confidence.
USDJPY: Yesterday, USDJPY fell naturally (unaffected by concerns over the Bank of Japan rumors). In the process, price fell below the 100-hour and 200-hour moving averages. However, by the close price had returned above the 200-hour moving average. After trading up and down in Asian trading, a new move to the downside has begun, but buyers find support near the 38.2% retracement of the rise from the October 10 low of 149.289. did. The inability to break below that retracement level led to a rotating backup towards the 200-hour moving average of 149.698 and the 100-hour moving average of 149.803. These moving averages will serve as barometers for today’s short-term trading. A move above the 100-hour moving average will be more bullish. On the other hand, a break below the 200-hourly moving average will be more bearish.
GBPUSD: GBPUSD trended up yesterday and in the process broke above the 200-bar moving average on the 4-hour chart at 1.22639 for the first time since early August 2023. Its momentum stalled just at the head of the 50% midpoint of the last trend. It has fallen from the high of 1.22923 on September 11th. Since then, the price has been trending lower and has fallen below the swing area between 1.2219 and 1.22318 on the 4-hour chart. Price is close to the 100-bar moving average of 1.21826 on the 4-hour chart.