In this morning video on October 31, 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 move higher mostly helped by the surge in major crosses against the JPY after the Bank of Japan disappointed those looking for a change in policy. That rise to the upside stalled the head of the highs from last week between 1.0677 and 1.06935. The high price reached 1.0674. The US employment cost index reversed the focus from the end back into the US dollar as the FOMC rate decision looms ahead (tomorrow at 2 PM ET). That takes the price back toward the swing area between 1.0608 and 1.0616. Recall that the 1.06108 is the 38.2% retracement of the move up from the September 2022 low. That level comes between the swing area.
USDJPY: The USDJPY surge higher after the Bank of Japan interest rate decision and in the process has now extended above the high price from last week at 150.772. The market is less scared of the 150.00 level given the Bank of Japan decision, and now only has the swing high going back to October 2022 at 151.938 to get the pair to a multi-decade high for the pair. Close support is now the high from last week at 150.77.
GBPUSD: The GBPUSD moved higher (like the EURUSD) as traders pushed into the GBPJPY after the BOJ decision.The high price extended toward 1.22000 level but has rotated back to the downside after the higher US employment cost index. On the downside the 200 are moving outcomes in a 1.2148. That is the next target followed by the 100 hour moving average of 1.2127.
