In this morning video on October 20, 2023, I kickstart the Forex trading day with a technical look at the EURUSD, USDJPY and GBPUSD. What are the biases, the risks, the targets for those three major currency pairs?
EURUSD: The EURUSD has moved down to test it 200 hour-moving average for the 3rd time to start the North American trading session. That moving average comes in at 1.0566. Just below it is its rising 100-hour moving average 1.0560. Those moving averages will be the barometer for more bullish above/more bearish below. On the top side watch the 1.05944 intraday clues in the short term. That level was the high price from Tuesday and Wednesday. Yesterday the price extended above that area to another swing area between 1.06080 1.0616 but could not sustain momentum. Just watch that level for traders.
USDJPY: The USDJPY continues to have 150.00-itis. That is the fear of taking the price above that level. The high price today reached 149.008 and then fell to 149.62 before bouncing back. The prices back up toward the 150.0 level as the North American day starts. The question is can traders test and move above that level with the Bank of Japan looming?
GBPUSD: The GBPUSD tested the low from yesterday at 1.2088. That got within around 12 pips of the 38.2% retracement of the move up from the September 2022 low at 1.2076. Are buyers leaning against that level? The move to the upside has traders looking toward the 100-hour moving average 1.21605, and a swing area between 1.21577 and 1.2167. Admittedly, the price action this week has made a mess of that area. It was more “believable” prior to this week. Nevertheless the 100-hour moving averages within that area. So getting above the 100-hour moving average and stay above that moving average is needed to increase the bullish bias. Staying below is more bearish.