Market Analysis: Pound, Yen, and Euro Test Important Supports

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The rise in the core consumer price index in the US, published last week, contributed to the start of a new upward impulse for the US dollar. European and commodity currencies interrupted the upward correction that began in early October and retested significant supports.

Thus, the GBP/USD currency pair almost reached 1.2100, the EUR/USD pair fell below 1.0500, and USD/JPY buyers lacked a couple of dozen points to update the recent high at 150.20. However, yesterday, greenback sellers managed to seize the initiative, and the American currency had to retreat from record highs of the current year. The continuation of recent trends will depend on the incoming fundamental data of the coming trading sessions.

USD/JPY

The failure of USD/JPY buyers to consolidate above 150.00 may lead to another downward impulse in the direction of 148.20-147.40. Over the past three weeks, the price has tried several times to overcome the resistance at 150.20-149.80, but as we see, to no avail. On the daily timeframe, we can see the formation of a double top pattern, which will be confirmed after moving below 147.40. At the moment, the pair is trading in a rather narrow flat corridor, to exit from which, most likely, a good news driver is needed.

Today at 15:30 GMT+3, we are waiting for the publication of data on the basic US retail sales index for September. Michelle Bowman, a member of the US Federal Open Market Committee (FOMC), is scheduled to speak a little later.

GBP/USD

The strengthening of the US currency last week led to the return of the GBP/USD pair below the alligator lines on the daily timeframe. However, the low of the bullish bar was never updated. With an appropriate foundation, the price may retest 1.2340-1.2300.

The coming trading sessions are very important for the further pricing of GBP/USD. Tomorrow at 09:00 GMT+3, the publication of data on the consumer price index in the UK for September is expected. A housing price index will be released a little later.

EUR/USD

Buyers of the single European currency managed to keep the price above 1.0500 and are currently trying to once again test the important range of 1.0600-1.0630. If it consolidates above these levels, the price may resume growth in the direction of 1.0700-1.0800. A breakdown of the lower fractal at 1.0490 may contribute to the resumption of the downward movement in the direction of 1.0400-1.0300.

Today, at 20:00 GMT+3, a speech is scheduled by the representative of the Bundesbank Nagel and the Vice President of the European Central Bank, Luis De Guindos.

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