Market Analysis: The American Currency Continues Its Downward Correction

FXOpen

On Monday, the downward correction in the US dollar resumed with renewed vigour. Thus, the pound/US dollar currency pair strengthened by more than 100 pips, the euro/US dollar pair confidently strengthened above 1.0600. The yen and commodity currencies also found important support. There are no pronounced downward dynamics in the US dollar/yen pair, but another rebound from the impregnable resistance at 150.00 could contribute to the start of a full-scale downward correction in the direction of 147.00-145.00.

GBP/USD

The pound/US dollar currency pair, after several attempts to break the support at 1.2100, rebounded sharply and yesterday managed to strengthen above 1.2200. Ahead, buyers of the pair will have to overcome another important resistance at 1.2300-1.2340. If the price manages to consolidate above this range, the pair may continue to grow in the direction of 1.2600-1.2700. A rebound from the mentioned marks may return the price back to 1.2100.

Today, the publication of data on the UK Composite Business Activity Index (PMI) for October is expected. Analysts predict a slight increase in the indicator, which may further support the pound.

EUR/USD

Buyers of the single European currency, after a long flat movement between 1.0500-1.0600, managed to break the resistance at the upper border of the specified corridor and are currently trying to test 1.0700. In case of a successful attempt to consolidate above 1.0700, renewed growth to 1.0900-1.1000 may occur.

Today is an important fundamental day for the pair. At 11:00 GMT+3, the index of business activity in the services sector and the composite business activity index (PMI) from S&P Global for October will be published. Also at 15:30 GMT+3, ECB Chairman Christine Lagarde is scheduled to speak.

USD/CAD

Buyers of the USD/CAD pair managed to get closer to the important resistance at 1.3800 last week. Yesterday's rebound from 1.3700 contributed to a move below 1.3700. With the appropriate fundamental background, a continuation of the downward correction in the direction of 1.3600-1.3400 is possible. Cancellation of the downward correction scenario may be considered after moving above 1.3700.

Today at 15:30 GMT+3, the price index for new housing in Canada for September will be released. Tomorrow at 17:00 GMT+3, the Bank of Canada will announce its decision on the interest rate.

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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.

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