The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Market updates on November 8
Key events ahead
German Balance of Trade – 09:00 MT time (07:00 GMT)
Canadian jobs data – 15:30 MT time (13:30 GMT)
American Michigan Consumer Sentiment – 17:00 MT time (15:00 GMT)
- Against the British pound, the euro shows a strong bullish intention. On the H4 chart of the EUR/GBP, there is clear diagonal support that has started forming on Tuesday. The bears may have their support levels located at 0.8614, 0.8602 and 0.8590. For the bulls, we should see if a strong resistance of 0.8641 gets passed; once it does, there will be another one located at 0.8649.
- Against the Canadian dollar, the euro is not as bullish today as it has been against the GBP. The support level of 1.4546 was reached on Thursday and will be backed by the 1.4564 mark for the bears. The local resistance levels may be placed at 1.4584 and 1.4600.
- The USD has reached a 109.47 high against the JPY, where it has not been since August this year. On the H4 chart of USD/JPY, this resistance level will be capping the bullish part of the market, as the RSI indicator also has started dropping from the overbought level on the same mark. Now the price is testing the local support level of 109.23. If it is crossed, the bears may locate their further support levels at 108.90 – 108.95 and 108.75 for the downturn in the market.
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