US dollar 11/12

The US dollar edges higher as investors looked ahead to President Trump's speech at the Economic Club of New York where he is expected to discuss trade issues. Trump could confirm a delay on tariffs on European autos and progress on talks with China, analysts said. The dollar has tended to strengthen during periods where trade tensions have been elevated and global growth has slowed. The WSJ Dollar Index, which measures the US currency against a basket of 16 others, rose less than 0.1% to a recent 91.09.

MAJOR PAIRS 11/10

 
EUR/USD 
1st support - 1.0940 (major) 
1st resistance - 1.1120 (major) 
2nd support - 1.0870 (major) 
2nd resistance - 1.1185 (major) 
 

EUR/USD (last 1.1019): The pair has closed below the key support at 1.1035 turning the short-term outlook bearish. In fact, it has formed a bearish pattern of "double tops" while striking the lower Bollinger band calling for further downside. A pull-back to the first downside target at 1.0940 would open a path toward 1.0870. Only a return to the key resistance at 1.1120 would trigger a rebound to 1.1185 on the upside.

 
AUD/USD 
1st support - 0.6795 (major) 
1st resistance - 0.6930 (major) 
2nd support - 0.6720 (major) 
2nd resistance - 0.6975 (major) 
 

AUD/USD (last 0.6857): The pair has retreated from a recent high of 0.6929 while trading at levels around the 20-day moving average. Short-term bullishness is still maintained by the 50-day moving average. In case the pair emerges to the upside after completing the current consolidation phase, it should revisit 0.6930 and 0.6975 on the upside. However, a break below the key support at 0.6795 (around the 50-day moving average) would call for a further decline toward 0.6720 on the downside.

 
NZD/USD 
1st support - 0.6275 (major) 
1st resistance - 0.6445 (major) 
2nd support - 0.6200 (major) 
2nd resistance - 0.6540 (moderate) 
 

NZD/USD (last 0.6329): The pair maintains a bullish bias above the key support at 0.6275. In fact, it has stabilized after reaching a rising trend line drawn from October, and support is also provided by the 50-day moving average. Unless the key support at 0.6275 is violated, the pair should proceed to 0.6445 and 0.6540 on the upside. Alternatively, a break below 0.6275 would trigger a decline to 0.6200.

 
GBP/USD 
1st support - 1.2575 (major) 
1st resistance - 1.3000 (major) 
2nd support - 1.2400 (moderate) 
2nd resistance - 1.3175 (moderate) 
 

GBP/USD (last 1.2790): The pair remains on the upside despite a modest pull-back. Currently, it is trading at levels above the ascending 50-day moving average, while the relative strength index stays above the neutrality level of 50, signaling a bullish bias. As long as the key support at 1.2575 holds, the pair should target 1.3000 and 1.3175 on the upside. Alternatively, below 1.2575, expect a return to 1.2400 on the downside.

How To Trade Forex Using Support and Resistance Levels

British pound 11/10

The British pound is up more than 6% from recent multiyear lows, while a rebound in China's yuan has lifted a broad range of currencies. Emerging-market equities have also bounced back from a steep selloff earlier in the year, and a rise in oil is leading a rally in commodities that has buoyed everything from copper to coffee.

Driving the gains are signs of better-than-expected outcomes to several issues that have weighed on markets for most of the year. The U.S. and China are approaching an initial accord on trade; the world's biggest central banks have slashed interest rates to curtail a manufacturing slowdown; and the odds of a disorderly U.K. exit from the European Union are declining.

Coupled with a climb in U.S. shares that has pushed major indexes to fresh highs, the moves highlight investors' sudden optimism after months of caution.

EUR/USD 11/8

The euro should drift lower against the dollar as uncertainty over a U.S.-China trade deal remains high and global economic growth is subdued, says Gaetan Peroux at UBS. Eurozone retail sales data for September and final purchasing managers' surveys for October "generally surprised to the upside" but have "inspired little belief that a euro rebound is around the corner," he says. "Still, delicate green economic shoots are visible; if they continue to sprout, EUR/USD may not be too far from the bottom." EUR/USD is last down 0.2% at 1.1021.

French industrial production

France isn't insulated from the global trade and industrial weakness, says Oxford Economics following weak French industrial production and trade data in 3Q. French industrial production rose 0.3% in September, figures from statistics showed Friday, reversing a 0.9 decline in the previous month. But over the third quarter, French production declined 1.2% from the previous quarter, on par with the losses seen in Germany. Nevertheless, French payrolls rose 0.3% in the period, which according to Oxford Economics shows that the country's domestic demand remains even more resilient than in Germany.