We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
  • Crude oil prices may rise on supply-disruption fears after the outcome of the Iran election, but sentiment from #coronavirus fears may derail Brent’s recovery ahead of the G20 summit. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/83iTphwaWv #OOTT https://t.co/RgQku64XyW
  • The Australian Dollar remains severely weighed down by #coronavirus worries and a lack of domestic data points will probably keep that story in the driving seat. Get you $AUDUSD market update from @DavidCottleFX here: https://t.co/qswUnnXVwR https://t.co/NyZ0iEpILm
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/uOLKRebXB1
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVzX6w https://t.co/GDTFHvUIf7
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
  • The $JPY continues to struggle against the US Dollar but there seems little appetite to push USD/JPY much beyond a range which has tended to reassert itself since late last year. Get your market update from @DavidCottleFX here: https://t.co/iaVfPSuXy4 https://t.co/1QPhJmYlQv
USD Getting Oversold- GBP Correction in Focus Ahead of BoE

USD Getting Oversold- GBP Correction in Focus Ahead of BoE

2013-10-03 16:30:00
David Song, Currency Strategist
Share:

Talking Points:

- USDOLLAR Slips to Fresh Monthly Low (10,468); Non-Farm Payrolls Delayed

- GBPUSD at Risk of Larger Correction Ahead of Bank of England (BoE) Meeting

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10470.29

10493.32

10468.11

-0.09

50.96%

USDOLLAR Daily

Forex_USD_Getting_Oversold-_GBP_Correction_in_Focus_Ahead_of_BoE_body_Picture_3.png, USD Getting Oversold- GBP Correction in Focus Ahead of BoE

Chart - Created Using FXCM Marketscope 2.0

  • Opening Range Continue to Take Shape; Fresh Monthly low (10,468)
  • Waiting for Bearish Relative Strength Index Momentum to Break for Rebound
  • Interim Resistance: 10,582 (23.6 expansion) to 10,589 (50.0 retracement)
  • Interim Support: 10,449 (100.0 expansion)

Release

GMT

Expected

Actual

Challenger Job Cuts (YoY) (SEP)

11:30

--

19.1%

Initial Jobless Claims (SEP 27)

12:30

315K

308K

Continuing Claims (SEP 20)

12:30

2805K

2925K

ISM Non-Manufacturing Composite (SEP)

14:00

57.0

54.4

Fed's John Williams Speaks on U.S. Economy

15:00

Fed's Richard Fisher Speaks on U.S. Economy

16:30

Fed's Dennis Lockhart Speaks on U.S. Labor Market

17:00

Fed's Jerome Powell Speaks on Banking System

17:30

Fed's Richard Fisher Speaks on U.S. Economy

21:30

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) continues to threaten the June low (10,469) as the weaker-than-expected ISM Non-Manufacturing survey dampens the prospects for a stronger recovery, and the reserve currency may face additional headwinds over the near-term as the fiscal drag continues to limit the Fed’s scope to taper the asset-purchase program.

With more Fed speeches on tap for later today, we may see a growing number of central bank officials adopt a more cautious tone ahead of the October 29-30 meeting amid the government shutdown, and the reserve currency may continue to search for support as the bearish momentum in the Relative Strength Index continues to take shape.

In turn, we may see the USDOLLAR continue to carve a series of lower highs paired with lower lows, and the bearish sentiment surrounding the greenback may gather pace ahead of the debt limit amid the deadlock in Congress.

Forex_USD_Getting_Oversold-_GBP_Correction_in_Focus_Ahead_of_BoE_body_ScreenShot189.png, USD Getting Oversold- GBP Correction in Focus Ahead of BoE

GBPUSD Daily

Forex_USD_Getting_Oversold-_GBP_Correction_in_Focus_Ahead_of_BoE_body_Picture_1.png, USD Getting Oversold- GBP Correction in Focus Ahead of BoE
  • Retails Upward Trending Channel Dating Back to July
  • RSI Falling Back from Overbought; Bullish Trend at Risk
  • Interim Resistance: 1.6300 Pivot
  • Interim Support: 1.6000 Pivot

Two of the four components advanced against the greenback, led by a 0.43 percent rally in the Euro, while the British Pound bucked the trend, with the GBPUSD struggling to hold above the 1.6200-10 region, the 23.6 percent Fibonacci retracement of the 2009 range.

The GBPUSD may face a more meaningful correction in the coming days as the RSI falls back from overbought territory, and the pair may ultimately threaten the bullish trend dating back to July should the oscillator fail to hold trendline support.

In turn, the British Pound may work its way back towards the 1.6000 handle ahead of the Bank of England (BoE) meeting on tap for October 10, but a more material shift in the policy outlook may trigger another run at 1.6300 as Governor Mark Carney moves away from the easing cycle.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on Analyst on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.