Top Trade Setups in Forex - Consumer Confidence In Play!
|The ICE U.S. Dollar Index was little changed on the day at 97.76. U.S. President Donald Trump said they are ahead of schedule to sign the phase one trade deal with China.
The euro edged up 0.1% to $1.1099 and the pound rebounded 0.2% to $1.2857. The European Union agreed to accept a 3-month Brexit delay to January 31, with an option of Britain leaving by December 1. At the same time, the U.K. Parliament voted to reject Prime Minister Boris Johnson's call for a general election.
The USD/JPY advanced 0.2% to 108.98. Commodity-linked currencies were mixed against the greenback. AUD/USD gained 0.2% to 0.6839, NZD/USD fell 0.1% to 0.6353, and USD/CAD slipped 0.1% to 1.3051.
USD/JPY - Bullish Breakout Fails
The USD/JPY is trading bearish on Tuesday following a strived breakout to the upper side during the Asian session. However, the USD/JPY failed to maintain bullish momentum due to a lack of buyers in the market.
The price action doesn’t imply any critical changes in investor attitude. It is being stoked by position-squaring before the inception of the U.S. Federal Reserve’s two-day conference later today.
Moreover, traders also seem to be making arrangements before the Bank of Japan’s two-day meeting, which is due on Wednesday. At 09:33 GMT, the USD/JPY is trading 108.917, down 0.102 or -0.09%. The U.S. Federal Reserve is broadly anticipated to lower its benchmark interest rate 25-basis points on October 30. The Forex market traders are pricing in a rate reduction for this week, then a lull, accompanied by a rate reduction for the subsequent year.
USD/JPY- Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
108.53 |
108.65 |
108.79 |
|
108.39 |
108.92 |
|
|
108.13 |
109.18 |
USD/JPY- Daily Trade Sentiment
Technically, the USD/JPY has violated the long-held trading range of 108.750 - 108.300. For now, almost all of the indicators are suggesting a bullish bias for the USD/JPY currency pair. For instance, taking a look at the 4- hour chart of the USD/JPY, the pair is holding above the already violated range, which is extending its support around 108.750.
The MACD and RSI are suggesting bullish bias, as both of them are staying 0 and 50, respectively. The USD/JPY may continue trading bullish until 109.100 and even higher to 109.400.
XAU/USD - Bullish Trendline Supports
On Tuesday, the precious metal gold is trading mostly stable, floating nearby $1,490 an ounce as development in China-U.S. trade discussions carried equities rising, while forecast before of major central bank meetings in the week presented some support.
Gold was little changed at $1,493.09 per ounce as of 0737 GMT, after shedding nearly 1% in the previous session. U.S. gold futures eased slightly to $1,495.50 an ounce.
U.S. President Donald Trump announced on Monday he assumed to confirm a vital part of the trade agreement with China before of schedule. The likelihood of an expansion on tariff halts on $34 billion of Chinese goods also contributed optimism.
XAU/USD - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1493.29 |
1494.02 |
1494.71 |
|
1492.6 |
1495.44 |
|
|
1491.18 |
1496.86 |
XAU/USD - Daily Trade Sentiment
The precious metal gold is facing strong support above the bullish trendline area of 1,490, and at the same time, gold also faces resistance at 1,497. A bullish breakout of 1,47 can drive further buying in gold, and it can lead its prices towards 1,504 and 1.508 area.
AUD/USD – 38.2% Fibonacci Retracement In-Play
The Australian Dollar is trading distinctly higher for another session on Tuesday, supported by the risk-on mode in the exchange, which began broadly on Monday following the European Union conferred the third setback to the U.K.’s exit. Most of this happened upon the request from Prime Minister Boris Johnson and MPs in government.
Additionally, global risks have been exhibiting symptoms of sinking with the de-escalation of U.S.-China trade strains. On Monday, President Donald Trump announced a trade agreement seemed to be before of schedule, without specifying the timetable. Moreover, the United States also announced it was considering whether to prolong tariff suspensions due to stop in December.
The primary trend is bullish as per the daily swing chart. A trade through .6883 will indicate a continuation of a bullish trend. The trivial range is .6883 to .6809, whereas the 50% mark is at .6846, which is really important.
AUD/USD - Technical Levels
|
Support |
Pivot Point |
Resistance |
|
0.684 |
0.6849 |
0.6862 |
|
0.6828 |
0.687 |
|
|
0.6806 |
0.6892 |
AUD/USD - Daily Trade Sentiment
The AUD/USD is holding precisely, as we anticipated in the previous update. The bounced off from the 38.% Fibo level of 0.6810 to trade at 0.6860 area. The closing of bearish candle right next to the strong bullish trend is suggesting chances of a bearish reversal.
The break of 38.2% Fibonacci retracement level may extend bearish movement till 0.6800, the 50% Fibo level. Traders need to keep an eye on 0.6849 to stay bearish and bullish over the related level.
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