October 11 2021
Despite missing the forecast a mixed NFP report last Friday, has had little impact on the EURUSD, which remains somewhat subdued.
Although last week we made a new low at 1.1530 there has been no follow through selling, with the market preferring to consolidate in a 50 point range.
Support remains at 1.1530 and if we do manage to break here the next support will be found at 1.1470/60 and them 1.1430/20.
There looks to be some immediate resistance at 1.1580 and then 1.1630/40 a break here will open up a run to 1.1680.
GBPUSD remain surprisingly resilient and continues to trade around the 1.13620/40 area looking to take out resistance at 1.3650 and move onto 1.3700, possibly 1.3740 in extension.
However, should we be unable to make further upside progress, I would look for a return to 1.3560/40 where a break down would again bring into play the recent lows of 1.3440/1.3420.
USDJPY took out resistance at 112.00/20 on the back of rising US bond yields., this was despite a mixed NFP.
The markets believe that the FOMC will start tapering their asset purchases in November. There is also growing concern that US inflation remains stubbornly high, and looking less and less likely to be just transitory, raising expectation of US interest rate hikes earlier than previously expected.
So, the US interest rate sensitive USDJPY could be in for a difficult ride in the coming weeks and months.
The next area of strong resistance in at 113.10/30 and then 113.60/80.
Downside support will be found at 111.80/60 and then 111.00/110.80
Good Luck this week.