FX News – November 4: EUR/USD, GBP/USD Bounce Back

FX Strategy Articles > FX Trading Tips

The EUR/USD pair bounced back to around the 1.3500 level in today's trading, albeit temporarily. This boost came after it dipped sharply last week amid speculations that the European Central Bank (ECB) would announce further cuts to its already low rate of 0.5 per cent.

Today, however, the pair somehow received a temporarily lift back to the 1.3500 zone after the Marikit Manufacturing PMI for October came out at 51.3 as expected. In addition, Sentix Investor Confidence for October rose from 6.1 to 9.3. This was well beyond the expected 6.0 figure.

The EUR/USD slid below 1.3500 over the past few hours in anticipation of a number of key reports from the United States, including Factory Orders, as well as speeches from FOMC Member Jerome Powell and the President of the Federal Reserve Bank of Boston, Eric Rosengren. More volatility can be expected later in the week as the ECB announces its interest rate decision (Thursday, 7 November, 12:30PM GMT), and the US releases its NFP data for October (Friday, 8 November, 1:30PM GMT)

The pair is currently trading at 1.3509, with initial resistance seen at 1.3539, followed by 1.3573. Meanwhile, initial support is at 1.3428. Followed by 1.3394.

As for the GBP/USD, the pair managed to make a slight recovery after suffering a massive drop late in last week's trading. The slide was caused by positive data from the US and general profit taking. These resulted in the pair's dive below the 1.6000 zone.

In today's trading, the pair made a slow climb back to the 1.5980 area, but has since slipped again in the past few hours. It is once again trying to make a comeback and is currently trading at 1.5966. Initial resistance for the pair is at 1.5986, followed by 1.6026. Meanwhile, initial support is at 1.5847, followed by 1.5808.

By FX Strategy Team, Published on 4th of November 2013
eTorro - Trading Starts Here

Start Trading Forex with up to $10,000

  • 100s Videos and FX Strategy articles
  • Advice from our FX traders
  • Practive free with using real time