All Round Major Pairs Technical Analysis: EUR/USD, AUDUSD, And GBPUSD, Moves With A Bearish Tone Following FOMC Meeting
The start of November has been a dwindling moment for the general major currency market. As essential economic updates flood the surface of the entire foreign exchange market, in which most of the currency pairs especially the major pairs were greatly affected by the impact of the economic releases. However, the US dollar was discovered to have held the main currency exchange performance metrics as the central economic updates from the US region tend to have determined the significant changes that have occurred in the major currency market so far.
Fundamental Outlook Around the Major Pairs
While looking further into this present trading week it will be mutual for the dollar pair market to experience an increase in volatility, because the entire market structure for the major pairs across boards is indeed in preparation for stronger bearish and bullish moves respectively. In view of the fundamental economic releases that are set before the trading bout of this week, it should be noted that the Japanese yen holds 70% of the fundamental releases. Furthermore, the European Central Bank President, Lagarde alongside the Federal Reserve Chairman Jeremy Powell and a member of ECB Panetta will be confirming a speech about the short term interest rate levels, which is possible to have a crucial role in the overall feat of the Euro and the Dollar pairs.
The Bank of England Governor Andrew Bailey will be having a speech this week. Also, this will capture the attention of several market participants as it would be an indicator of future monetary policy decisions. In addition to this, the Germany Zew economic sentiment which had its previous reports of 240 a report above this level would trigger a positive price action on the European currency. While diving further into the economic calendar from the Australian region the Australian employment data will be announced this week with a consensus forecast of 50K. The US Initial Jobless claims had a previous record of 254K and a consensus forecast of 265K a value above the previous updates will result in more positive strength for the dollar.
Technical Analysis Viewpoint Around The Major Pairs
The dovish Fomc meeting conclusion as regards to rate taper along with the ECB push back on rate cut has been the main driver behind the technical price action that had to occur in the currency market last week.
EURUSD Technical Analysis
The market structure for the EURUSD pair indicates a strong bearish perspective as the double top candlestick chart pattern present on the weekly price chart is a crucial pointer for bearish price movement. With the 50MA signifying a short term bearish market condition it will be interesting to see how the market value for EURUSD which has failed to rally above August 2017 highest high of 1.23s price zone.
AUDUSD Technical Analysis
The Aussie loses strength against the greenback on a continuous declining momentum after market expectations for the greenback outperform the prevalent demanding pressure on the Australian dollar. A more bearish pattern will be reprinted in the market as the market structure on the 4-hour chart poses bearish notions in accordance with the bearish flag pattern encapsulated in the chart pattern.
GBPUSD Technical Analysis
The sterling holds firms to a bearish market condition following the downward channel candlestick chart pattern displayed on the daily price chart. However, the trend direction for the sterling is a sure indicator of weak demand for the GBP. A further break below the present price point of 1.3s could result in a more bearish market condition on the flip side retracement in price would likely begin to take shape in the market as the RSI indicator shows that the oversold nature of the pair has grown beyond limits, a stabilisation in price will be favoured by mild term retracement in market structure.
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