EUR/USD Continues to Slide
The EUR/USD pair recommenced its slide after briefly settling at 1.1213. The intraday market has shown a strong downward trend and is trading below the crucial 38.2% retracement of 1.0447 to 1.1213, which is 1.0920.
This indicates that the drop from 1.1213 could be the third phase of a larger corrective pattern, which began with a high in 2023 of 1.1274. If the trend continues downward, traders are looking for the next target, which could be 1.0740, which is the 61.8% retracement level.
On the contrary, a rebound over the resistance minor level of 1.0953 could result in the bias in the intraday range shifting back to neutral, bringing some temporary relief.
In the larger picture in the longer term, the pair’s reversal at the 1.1274 level indicates that the correction phase isn’t over.
A further drop could occur if the EUR/USD is lower than the 55-week EMA, which is currently near 1.0877. This could open an opening for more declines, possibly moving the currency to the 1.0447 support level.
Also Read: Forex Update: Volatility Continues Across Major Currency Pairs
GBP/USD Holds Steady Near Key Levels
The GBP/USD currency pair is stable, and the intraday trend remains neutral in the 1.3000 region, the crucial support cluster.
This region is located in the 38.2% retracement of the 1.2298 to 1.3433 interval, which stands at 1.2999. Strong support at this level will help complete the current correction from 1.3433. If this support holds, the following upward move may see a retest of the 1.3433 mark.
But, a prolonged break below 1.3000 could signal a bigger, more significant movement, possibly pushing the pair lower, towards the 61.8% retracement point at 1.2732.
In a long-term view, as long as the 1.3000 support holds the upward trend that started with the 2022 low of 1.0351, it is believed to be in motion. The next objective for bears will be the 61.8% projection for that 1.0351 up to 1.3141 interval, which currently stands at 1.4022.
But, a few bearish signs within the D MACD indicate caution since a significant break below 1.3000 may suggest that a mid-term peak has been created, which could push the pair toward the 1.2664 support.
AUD/USD Under Pressure
The AUD/USD currency pair has seen renewed pressure, falling toward the low of August 22 at 0.6698. Another drop could lead to it testing the low of September, 0.6623.
Despite the recent pressure to lower, a small amount of resistance can still be seen at the low on September 26 of 0.6819. It could serve as a temporary stumbling block to further downwards.
The technical outlook for AUD/USD still indicates the possibility of vulnerability, and traders are observing for any indication of a possible decline below the critical resistance levels.
EUR/JPY Faces Resistance
The EUR/JPY currency pair is fighting against a substantial resistance zone within 162.89 between 162.89 and 164.24.
As of now, this resistance has been held in place, preventing any significant bullish breakout. If the pair can surpass this level, it could be the beginning of a reversal of the bullish trend in the middle.
On the other hand, the support is located between the low of last Friday and the daily SMA that hovers between 161.01 and 160.52. Any move towards this level could offer buyers a chance to buy, seeking a rebound on the other side.
Grapples of USD/JPY with Resistance
USD/JPY is presently fighting an important resistance, 149.98. This month, this pair reached this level; however, it has yet to achieve an impressive daily closing above it. If the pair can get past this level, it could prove a long-term bullish trend reverse.
The support for USD/JPY remains strong between the high in early September of 147.21, The late October high of 146.49, and the low of 145.93, which was reported on October 4.
A move higher than the 149.98 resistance will likely change direction towards more bullish perspectives, which could lead to more gains for the pair.
Also Read: Gold and Silver Rates on October 15: Minor Decline in Gold Prices, Silver Holds Steady
The views and analysis shared by SMJ (Stock Market Journal) are based on publicly available data and market research at the time of writing. Market conditions may change, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial professional before making any investment decisions. SMJ is not responsible for any losses incurred based on the information provided in this article.
