Intraday Technical Analysis 02 October

The markets opened on Monday to the news that the United States, Mexico and Canada managed to agree on a new deal. The new trade deal replaces the North American Free Trade Agreement (NAFTA) and is now called the United States-Mexico-Canada Agreement (USMCA) deal. The deal is said to give greater access to the U.S to Canadian dairy markets in return for allowing extra imports of Canadian cars.

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Economic data from the U.S. was slightly. Construction spending was seen rising less than expected August. Official data showed that spending on construction rose just 0.1% in August on a month over month basis.

The ISM’s manufacturing PMI showed the index easing to 59.8 in August compared to 61.3 in July. The data also missed estimates of 60.1.

However, the USD managed to close on a high note, maintaining the gains from last Friday.

The day ahead will be marked by the RBA’s monetary policy meeting. No changes are expected to the interest rate which stands at 1.50%. The European trading session is relatively quiet. Spain will be releasing its unemployment change followed by the construction PMI data from the UK.

The median estimates put the activity in the construction sector to ease slightly to 52.8 from 52.9.

Later in the evening, the NY trading session will see the Fed chair, Jerome Powell speaking.

 

EURUSD intraday analysis

eurusd

EURUSD (1.1572): The EURUSD currency pair extended declines on Monday following through from last Friday’s losses. Price action is seen approaching the support level at 1.1547 – 1.1572 level. A rebound off this support level could stall the declienes temporarily. However, failure to hold the declines could trigger further losses. A break down below the support level could push the euro currency lower to the August lows of 1.1315 region.

 

GBPUSD intraday analysis

gbpusd

GBPUSD (1.3038): The GBPUSD currency pair was also trading weaker on Monday. Price aciton was seen settling near the support level of 1.3052 – 1.3028 level. As long as this support holds, there is scope for the GBPUSD currency pair to break higher. However, a break down below this level could see the cable testing the next main lower support at 1.2808. To the upside, price action could target the previously held resistance level of 1.3250.

 

XAUUSD intraday analysis

xauusd

XAUUSD (1191.42): Gold prices managed to bounce off the support level at 1183.30. However, we expect the sideways range to continue. The resistance level at 1197.50 is the likely target to the upside. Failure to breakout above this level could see gold prices holding the sideways range for longer. To the downside a failure of the suport could signal further declines. The previous lows at 1170.00 will be the next main target of interest.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.”
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