Video Length: 00:08:42
Talking Points:
– GBP/USD Retail Positioning at Extremes Following Failed Test of May Low (1.5088).
– AUD/USD Rebound Stalls at Former Support; Downside Targets in Focus Ahead of RBA Meeting.
– USDOLLAR Fails to Retain Opening Weekly Range as ISM Manufacturing Disappoints.
GBP/USD
Chart – Created Using FXCM Marketscope 2.0
GBP/USD remains at risk for a further loss over the near to medium-term as the Relative Strength Index (RSI) retains the downward trend from back in May; need a break/close below 1.5088 (May low) to 1.5090 (61.8% retracement) to favor a further decline.
However, with growing speculation for a greater dissent at the Bank of England’s (BoE) October 8 interest rate decision, may see GBP/USD consolidate ahead of the policy meeting amid the tightening race with the Federal Reserve to normalize monetary policy.
DailyFX Speculative Sentiment Index (SSI)shows retail crowd remains net-long GBP/USD since August 21, but the ratio is hitting recent extremes as it climbs to +3.11, with 76% of traders long.
AUD/USD
AUD/USD struggles to retain the gains following positive data prints out of China – Australia’s largest trading partner – with the pair pulling back from former support around 0.7080 (38.2% expansion) to 0.7090 (78.6% retracement).
Even though the Reserve Bank of Australia (RBA) is widely expected to keep the benchmark interest rate at 2.00% at the October 6 meeting, dovish language accompanied by a toughened verbal intervention on the local currency may spark a resumption of the long-term bearish trend for AUD/USD.
As AUD/USD struggling to push back above former support, will continue to keep a close eye on the narrow range as the pair continues to close above 0.6950 (161.8% expansion) to 0.6970 (50% expansion).
USDOLLAR (Ticker: USDollar):
|
Index
|
Last
|
High
|
Low
|
Daily Change (%)
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Daily Range (% of ATR)
|
|
DJ-FXCM Dollar Index
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12066.40
|
12082.08
|
12042.62
|
-0.06
|
81.34%
|
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