Market Analysis: October 30, 2013

Fundamental Picture

The dollar has been dominating the charts this week thanks to a bit of profit-taking ahead of the big FOMC minutes. In fact, EUR/USD and GBP/USD even made significant lows despite the release of worse-than-expected U.S. data, strong U.K. reports, and relatively bullish statements from some ECB members.

The week is not over yet though. The FOMC statement has yet to make its impact on the major currencies along with the BOJ and RBNZ statements and a couple more tier 1 reports from the U.S. I’ll definitely keep my eye on possible mid-week reversals.

Potential Trades

EUR/USD: Bullish

EURUSD

My EUR/USD trade got stopped out thanks to this week’s strong bearish move but overall I think that the uptrend is still intact. I’ll be looking at a possible bounce along the mid-channel support. I’ll also be on the lookout for the 1.3700 handle since it’s near a previous resistance and some Fib levels (thanks for the heads up, Big Pippin!)

USD/JPY: Cautiously Bearish

USDJPY

Based on the daily chart, it looks like USD/JPY is still on an uptrend. On an intraday basis though, the pair just isn’t getting past the 98.25 support and resistance area. What do you think? Is this something that you can day trade?

That’s it for me today! I’ll be updating my EUR/USD soon so please watch out for it.

Thanks and XOXO!

Huck

Follow me on MeetPips.com
Follow me on Twitter
Like my page on Facebook