Weekly Forex Technical Outlook – 3rd November

EURUSD (1.09): EURUSD has stalled in its declines from last week as the daily charts indicate a potential corrective move to the upside. Prices have been consolidating near the support/resistance level of .0977 through 1.0945 level for the past five sessions while the Stochastics oscillator is currently looking to make a higher low. In the short term, we expect EURUSD to decline to 1.0945 level with the possibility of a stretch lower to 1.0812, which marks a strong level of support from previous occasions. A higher low confirmed by the Stochastics against a lower low in prices will see a correction eventually to 1.1136.

GBPUSD (1.54): GBPUSD has managed to reverse off 1.526 as noted previously and the rally has seen prices test 1.548 before easing back. Support comes in at 1.53605 which could be the most likely level that could be tested ahead of a larger rally to 1.5588. A close below the lower support at 1.536 could however see a retest back to the main support at 1.5215 region. However, the bias remains to the upside as long as prices remain trading above the descending wedge trend line.

USDJPY (120.8): USDJPY has rallied back to 121 level and remains range bound. The sideways price action is likely to continue unless there is a strong catalyst that will move prices outside of this range. Resistance is clearly seen at the 121 level and with prices trading near the upper end of the falling price channel and the subsequent break of the minor rising trend line, USDJPY could be expected to move lower in the near term for a potential retest back to 118.4 level of support. Alternatively a break above 121 will see a potential rally to retest the next resistance at 123.305.

USDCAD (1.31): USDCAD has been correcting the decline for the past two sessions and a retest back to the support/resistance level at 1.3183 is very probable. A close above 1.325 could however potentially risk a move higher in which case USDCAD could test 1.336, the previous resistance level. The Stochastics oscillator currently points to a potential move to the upside. In either case, USDCAD remains poised for a short term rally being resumed making 1.3336 a key level for watch for.

USDCHF (0.98): USDCHF has formed a short term top when prices touched highs of 0.994. The current bullish price action, if confirmed could see an attempt to break above 0.9891 in which case, a new high is very likely to be formed. In the event that prices fail to establish support at 0.988, USDCHF could see a short term correction to 0.9792 in the near term and as long as prices are above this level, USDCHF is likely to remain biased to the upside.