Market Daily FX Outlook – Pound has a volatile session

The UK is not going to quit the negotiations with the EU even if the Oct. 15 deadline expires based on Bloomberg.  On the other hand, France appears pessimistic about finally having a deal and the EU summit will probably confirm the dead-end in the Brexit talks as they believe there is no sufficient progress.

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Reviewing today’s agenda, the Australian Westpac Consumer Confidence was increased to 105 from 93.8 points while Japan’s industrial production MoM rose by 1%, much lower than the previous month (8.7%). Eurozone’s industrial dropped by 7.2% as expected. Later today, we are expecting the US PPI MoM and API Crude oil stock change, as well as many individual speeches that have been planned mainly by ECB, FED, and BOC.

EURUSD

The fiber violated the blue zone to the downside after testing it once. If the current zone doesn’t hold, then it will accelerate even lower. There is a minor RSI positive divergence but it is not strong enough.

60m
EURUSDH1 14102020

GBPUSD

The cable dropped aggressively below the 200SMA which acts currently as a major resistance. Bulls could regain control if the price close above 200SMA decisively. If it validates the SMA from below, then it may fall into lower levels.

60m
GBPUSDH1 14102020

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USDJPY

The pair is looking for direction even though it’s in a downtrend as stays below the 200SMA. As long as it remains about the lower trendline, then there are probabilities for further rise.

60m
USDJPYH1 14102020

GBPJPY

Similar to GBPUSD, the pair is bouncing aggressively higher however traders should be cautious near the blue zone where bears may step in.

60m
GBPJPYH1 14102020

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Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on USDCHF while bearish on GPBJPY.
sentime 14102020

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.