Home Forex Forex Market Analysis Daily FX Brief, November 05– Major Trade Setups – Services PMI Figures...

Daily FX Brief, November 05– Major Trade Setups – Services PMI Figures In Highlights! 

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During the Asian session, the economic event well-occupied as it included October Service sector PMI figures coming out from China and Retail Sales Monitor figures from the United Kingdom. 

On the flip side, the Reserve Bank of Australia also released its November interest rate verdict and rate statement. The RBA decided to keep the policy unchanged today.  

On the geopolitical uncertainty aspect, chatter on trade contributed backing for riskier investments in the first section of the day. The focus today stays on the series of economic events from the U.S. and New Zealand. 

Economic Events to Watch Today

Let’s took at these fundamentals.

   

GBP/USD– Daily Analysis

The GBP/USD currency pair still flashing red for the 3rd consecutive day and dropped to 1.2880 on the day. Apart from trade positive headlines, recent uncertainty is taking place, surrounding the United Kingdom Prime Minister Boris Johnson’s victory in the snap election, which is scheduled to happen in December.

Besides that, not only the trade-positive comments from the United States and Chinese officials but the United States administration plan to remove some tariff on Chinese goods looks to support the existing risk-on sentiment. Everything boosts the chances of an incomplete trade deal between the United States and China.

A Labour-party member as the speaker of House of Commons and questions on the Prime Ministers’ performance in the report of Russia interference in British politics looks to hint additional difficulty for the United Kingdom citizen.

However, the British traders will keep their eyes on October month figures of services Purchasing Managers Index from the United Kingdom, ISM Non-Manufacturing PMI, second-tier jobs data, and trade balance will enhance the economic calendar of United States.


Daily Support and Resistance

S3 1.2769

S2 1.2835

S1 1.2858

Pivot Point 1.29

R1 1.2924

R2 1.2965

R3 1.303

GBP/USD– Trading Tips

The GBP/USD hasn’t changed much so far as it continues to trade bullish due to the weaker U.S. dollar. The Cable has outraged the previous resistance level of 1.2930. Now the pair is likely to face fresh resistance around 1.3050 area. Consider staying bullish above 1.2941 today.  

USD/JPY – Daily Analysis

The USD/JPY currency pair flashing green and representing 0.17% gains on the day mainly due to positive news came regarding trade. Notably, the pair is currently hit the session highs above 108.77. Whereas the recovery in the pair came from Friday’s lows of 107.89 is bright.

Japanese traders enjoy the heightening chances of the Successful trade deal between the United States and China after a holiday. As of writing, the USD/JPY currency pair takes buying to 108.75.

Besides, it’s not only the trade war-related positive comments from the United States and Chinese officials, but the United States administration plan to remove some tariff on Chinese goods looks to support the existing risk-on sentiment.

As a result, the United States’ ten-year Treasury yields continue the previous run-up to 1.8%, whereas Japan’s NIKKEI climbed 1.5% high at the start of Tuesday trading.

There is another reason behind the pair’s bullish trend, and that’s the support of greenback from the market. It came after the Fridays more than expected Nonfarm Payrolls that ward off Mondays’ adverse Factory Orders. Moreover, the U.S. dollar strong buying could be the new comments from the San Francisco Feds Mary C Daly, who declined the scope of the recession.


Daily Support and Resistance

S3 107.62

S2 108.05

S1 108.33

Pivot Point 108.49

R1 108.76

R2 108.92

R3 109.35

USD/JPY – Trading Tips

The USD/JPY continues to trade bearish with the selling bias due to weakness in the U.S. dollar. The USD/JPY pair broke the bullish channel, which was holding the USD/JPY at 108.800 zones.

Three Black Crows candlestick patterns are suggesting chances of additional selling in the USD/JPY until 107.450 today. On the upper side, resistance is likely to stay at 108.350. Consider taking bearish trades under 108.350 today.  

EUR/USD – Daily Analysis

The EUR/USD currency pair found on the bearish outside day candlestick pattern even after the positive news came regarding the United States and China trade progress and seen the risk-on sentiment in the financial markets.

As of writing, the EUR/USD currency pair dropped from 1.1175 to 1.1125 during the Monday and consolidating between the highs and lows. Notably, the bearish outside day candlestick pattern is broadly considered as a sign of a coming bearish reversal.

If the EUR/USD currency pair closes below the level of 1.1125 in today’s trading hour so then the trend reversal would be confirmed. By the way, the currency pair is currently trading at 1.1124, having hit the low of 1.1113 a few minutes ago.

The German economy badly damaged mainly due to the United States and China trade war, sending the Eurozone’s manufacturing powerhouse on the edge of the slowdown. So, the heightened chances of the United States and China makes a trade deal are supportive headlines for Eurozpn and Germany.

The market bought greenback during the Monday and will likely continue to buy more today, possibly due to the decrease of trade tensions that provides the Federal Reserve more opportunity to pause the rate cut series.


Daily Support and Resistance

S3 1.1033

S2 1.1087

S1 1.1105

Pivot Point 1.114

R1 1.1158

R2 1.1194

R3 1.1247

EUR/USD– Trading Tips

The EUR/USD has struck below the double top resistance point of 1.1175 and has lately closed series of neutral candles, which are suggesting chances of a bearish bias until the 1.1175 level gets violated. The pair still stays in the buying zone as the MACD, and RSI value is holding above 0 and 50, respectively. Consider staying bullish above 1.1153 to 1.1180 and 1.1220 today. 

All the best!

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