G3 Paralysis

Technical Analysis

EURUSD and USDJPY remains caught within erratic ranges in the very near term, with short term (one week) positive US$ corrections.

However, we continue to see a weaker US currency into latter October and early November, with the bias for EURUSD higher and USDJPY lower.

EURUSD

A rebound failure back from our 1.1380/95 resistance area after a Monday probe of support at 1.1313, leaves a negative bias.

However, the mid-October push up above 1.1460, out of the erratic range theme, leaves a bullish October outlook.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a more positive tone with the bullish threat to 1.1714 .
  • Above here targets 1.1871 and 1.2000.

Daily EURUSD Chart

EURUSD

USDJPY

A bounce Tuesday through 119.66 resistance, to shift the Wednesday bias higher to probe above 119.92, but hesitant at 120.34/57 for a neutral into Thursday.

However, the aggressive August sell off through multiple 2015 supports and setback from 121.75/77 resistance, and the bear move through mid-October, leaves an underlying bear tone for October.

Short/ Intermediate-term Outlook – Downside Risks: We see a bearish threat to down to 118.03, 117.83 and maybe the 116.14 spike low.

Daily USDJPY Chart

USDJPY

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