In this morning video on October 25, 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 rallied in the Asian session and was able to get above its 100-hour moving average in the process (currently at 1.06026). But fell short of a swing area we have been targeting at 1.0608 – 1.0616. The inability to extend above that swing area gave the sellers the go-ahead to push lower in the European session technically. The fall took the price below its 200-hour moving average 1.05736 and the last 5 hours of trading has seen the price move above and below that moving average level. On the downside, swing lows from last Friday’s trade came in near 1.05645. A break below that level with momentum would open the door for further downside potential in the pair as it moves further away from its 200 hour moving average.
USDJPY: The USDJPY trading has been confined to a narrow range today. On the downside the 100-hour moving average comes in at 149.823, and that has done a good job of holding supports. On the top side, the 150.00 natural level remains a level of resistance for buyers. Helping the pair fundamentally is that yields are higher in the US by about 4.5 basis points in the 10 year bucket. That tends to support the currency. However, fears of the Bank of Japan above 150.00 limits the upside. Traders are looking for the next break and run.
GBPUSD: The GBPUSD rallied in the Asian session but found willing sellers near the 100 and 200-hour moving averages (around the 1.2171 level). The inability to extend with any momentum above those moving averages ultimately gave sellers the go-ahead to push lower in the European session from a technical perspective.. The fall has taken the price down to a swing area ahead of the extremes from October. That swing area comes in at 1.21056 – 1.21109. Below that are the lows from last week near 1.2088. On the top side watch the swing lows from Monday’s trade at 1.21426 for close resistance.