Market Analysis: Major Currency Pairs Correct after Sharp Declines


The fairly positive US jobs report released last Friday ultimately led to a corrective pullback in almost all currency pairs. The US dollar fell against the yen, commodity currencies, the pound, and the euro. However, not all pairs managed to overcome the key ranges; the size of the corrective pullback and the possibility of a reversal will depend on the incoming fundamental events of the coming trading sessions.


In the US dollar/loonie pair, we are seeing the bearish tweezer pattern, formed on October 5, working out. The combination was confirmed the next day with a long black candle. The nearest range where the price can fall is from 1.3540 to 1.3500. Cancellation of the downward scenario may occur after a confident consolidation above 1.3700.

Several FOMC members are scheduled to speak today, in particular Neel Kashkari and Christopher Waller. Comments from these officials could have a significant impact on the pair's pricing.


The British currency managed to find support just above the psychological level of 1.2000 and returned above 1.2200. On the daily timeframe, we have a bullish reversal bar from October 4. At the moment, the price has approached important resistance at the alligator lines on the daily timeframe. If buyers of the pair can strengthen above 1.2300-1.2380, the pair’s growth may continue in the direction of 1.2500-1.2600. Cancellation of the upward correction scenario may occur if the price goes below 1.2040.

Today at 12:30 GMT+3, the minutes of the Bank of England Financial Policy Committee will be published.


The euro/US dollar currency pair, taking advantage of Friday's correction in the US dollar, managed to strengthen by more than 100 points. At the moment, the pair is trading near the alligator lines on the daily timeframe. Price action at 1.0600-1.0620 may give more clues regarding further pricing of the pair. A sharp rebound from current levels could contribute to a fresh update of the recent low. Consolidation above 1.0620 may contribute to further growth in the direction of 1.0700-1.0800.

Today at 15:00 GMT+3, ECB Chairman Christine Lagarde is scheduled to speak. A little later, Burkhard Balz from the Bundesbank will speak.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside The US Dollar Is Weakening Following Inflation Data Dollar Adjusts After the Publication of Inflation Data in the US Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction GBP/USD Analysis: Pound Recovers After the Bank of England Decision

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks

Get he latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news


The Price of Silver Has Reached Its Highest Level in Over Three Years

As indicated by the XAG/USD chart today, the intraday price of silver reached $29.84 per ounce yesterday, while the previous yearly high on 12 April was $29.79. The last time this price was seen was in February

What Is the Wolfe Wave, and How Can You Trade It?
Trader’s Tools

What Is the Wolfe Wave, and How Can You Trade It?

The Wolfe Waves is a powerful chart pattern recognised for analysing potential price reversals. Named after Bill Wolfe, who developed this formation through extensive trading practice, Wolfe Waves provide traders with a structured approach to anticipate market movements. In this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.