In this morning video on October 24, 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 trended higher yesterday and in the early hours of today’s trading, and in the process traded to the highest level going back to September 20. The high price reached 1.06935 just short of the natural resistance at 1.0700. Some weaker PMI data shifted the bias back to the downside as did some technicals breaks especially on the 5-minute chart (see video). The price has been trending more to the downside since the shift and has returned to support between 1.0608 and 1.0616. The buyers are to reenter the market this would be the area to do so. If so getting back above the high price from October 12 at 1.06395 would be needed to give the debt buyers more confidence.
USDJPY: The USDJPY naturally moved lower yesterday (not influenced by fears of Bank of Japan rumors). In the process, the price moved below the 100 and 200 hour moving averages. However, by the close, the price had rotated back above the 200-hour moving average. After up-and-down trading in the Asian session, a new move to the downside was initiated but found support buyers near the 38.2% retracement of the move up from the October 10 low at 149.289. The inability to get below that retracement level has led to a rotation backup toward the 200-hour moving average 149.698 and the 100 hour moving average at 149.803. Those moving averages will be the barometer for short-term trading today. Moving above the higher 100-hour moving average would be more bullish. Conversely, moving below the 200-hour moving average would be more bearish.
GBPUSD: The GBPUSD trended higher yesterday and in the process moved above the 200 bar moving average on the 4-hour chart at 1.22639 for the 1st time since early August 2023. That momentum stalled just the head of the 50% midpoint of the last trend move down from the September 11 high at 1.22923. The price has been trending lower since then and has moved back below a swing area on the 4-hour chart between 1.2219 and 1.22318. The price is approaching the 100-bar moving average on the 4 hour chart at 1.21826.