EURUSD, GBPUSD, AUDUSD Forecast: Potency for More Recovery

The euro fails to consolidate during the European session and enters a negative zone at the beginning of the US session. Yesterday, the price made October new high at 1.16700.

Today’s picture is different:

• EURUSD falls to the current 1.16250, testing a zone of potential support.
• The pair will possibly find support in the zone around 1.16000, and additional support in that zone are our MA20 and MA50 moving averages.
• Bearish consolidation further lowers us to a new test of the previous low at 1.15220.

Bullish scenario:

• The EURUSD pair should first break above 1.16700 with the support of MA20 and MA50.
• Our next resistance above is at 1.17000 in the downward trend line.
• The MA200 moving average provides additional resistance on the upper line.

GBPUSD chart analysis

Negative British news affected the GBPUSD pair during the European session, dropping from yesterday’s previous high from 1.38000 to the current 1.37785. The Today minimum was 1.37500 on the MA200 moving average.

Bearish scenario:

• GBUPSD is needed to drop below 38.2% Fibonacci level to 1,37300.
• Our next support is at 1,36500 with the MA50 moving average.

Bullish scenario:

• GBPUSD should make a positive consolidation, which would climb the pair above 50.0% Fibonacci level 1.38300.
• Our next resistance is at 1.39000 previous high from September 14th.
• The main goal in the bullish trend is a 1.40000 psychological level.

AUDUSD chart analysis

AUDUSD was successful during the Asian session making a new high at 0.7500. He managed to overcome the previous high of September 3rd. The road is now open to 0.76000 high from July.

Bullish scenario:

• Positive consolidation and a break above 50.0% Fibonacci levels gave us extra wind in our backs.
• Moving averages are on the bullish side.
• Our next resistance is at 61.8% Fibonacci level at 1,75900.

Bearish scenario:

• The pair AUDUSD needs to make a negative consolidation.
• Our first support is at 0.74350 along with the MA20 moving average.
• The next lower support is at 38.2% Fibonacci level at 0.74000.

The pair is in a bullish trend during October, and there are no signs on the chart that there will be a reversal on the bearish side.

Market overview

Producer prices in Germany have risen at the fastest pace since 1974 due to strong energy prices. Producer prices rose 14.2 percent year-on-year in September, after rising 12 percent in August. The forecast was 12.7 percent.

Growth is the largest increase since October 1974, when prices jumped 14.5 percent in the middle of the first oil crisis.

Every month, producer prices rose 2.3 percent, much faster than the 1.5 percent increase in the previous month and economists’ forecasts of 1 percent.

Consumer price inflation in the UK slowed unexpectedly in September, the National Statistics Office announced on Wednesday.

Consumer price inflation dropped to 3.1 percent from 3.2 percent in August. The economic forecast was 3.2 percent.

Core inflation, without energy, alcoholic beverages, food, and tobacco, slowed to 2.9 percent from 3.1 percent in the previous month.

BoE Governor Andrew Bailey said over the weekend that the bank would have to act due to rising inflation, raising expectations for an increase in the rate this year. Bailey said the rise in energy prices would push inflation higher and last longer than previously expected.

The fall in CPI inflation in September seems a bit of a lull before inflation jump to close to 4.0 percent in October and between 4.5 and 5.0 percent by April next year, said Paul Dales, an economist at Capital Economics.