EURUSD, GBPUSD still Ulower dollar pressure
Looking at the EURUSD chart on the daily timeframe, the pair sees support at 1.15250 and has seen slight gains at the current 1.15610. We are still in a downward channel in a prolonged downtrend. A shorter pullback can move the pair to the 1.16500-1.17000 zone where the next obstacle in the 20-day, 50-day moving averages and resistance in the upper trendline await us. We expect further negative consolidation for the bearish continuation which will test the psychological level at 1.15000. The break between us leads to new lows this year.
GBPUSD chart analysis
If we look at the GBPUSD chart on the daily time frame, we can see that the pair is still in consolidation around the 23.6% Fibonacci level at 1.36000. Suppose the consolidation advances to the bullish side and breaks above the Fibonacci level and the 20-day moving average. In this case we can expect GBPUSD to develop stronger bullish momentum and hit the zone around the next upper 38.2% Fibonacci level at 1.37300. Another continuation brings us to a 200 day moving average at 50.0% Fibonacci level at 1.38300. We expect the bearish scenario to fall below this consolidation, seek support at the 1.35000 psychological level and perhaps revisit previous highs at 1.34100.
The UK economy rebounded in August, data from the Bureau of National Statistics showed on Wednesday.
The gross domestic product grew by 0.4 percent per month, but somewhat more slowly than the 0.5 percent forecast by economists.
July GDP growth has been revised from 0.1 percent to 0.1 percent. This was mainly because vehicle, oil and gas production data were revised down, as well as improvements in health production measurement. GDP in August was 0.8 percent below pre-pandemic levels.
After a plus of 0.3 percent in July, production rose by 0.8 percent. This was mainly due to the sustained increase in oil and gas production. Manufacturing rose 0.5 percent after falling 0.6 percent in July.
Consumer price inflation in Germany accelerated, as originally estimated, in September to its highest level since 1993, as final Destatis data showed on Wednesday.
Consumer price inflation rose from 3.9 percent in August to 4.1 percent in September. The annual rate is in line with the estimate published on September 30th. The harmonized EU inflation rate rose from 3.4 percent in the previous month to 4.1 percent. Adjusted consumer prices rose by 0.3 percent every month.
In August, industrial production in the euro area fell for the first time in three months, Eurostat reported on Wednesday. Industrial production fell 1.6 percent in August, reversing the 1.4 percent growth in July. The rate of decline has been in line with economists’ expectations and this was the first decline since June.
On an annual basis, industrial production grew by 5.1 percent, but faster than expected by 4.7 percent.
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