This article is daily technical analysis from Ray Shen.

USDX

The recent improvement in trade conditions and rising yields on U.S. stocks and bonds have improved pessimistic forecasts for the U.S. economy, as well as strong U.S. jobs data and cooling expectations for further fed easing. The October ISM non-manufacturing PMI reading of 54.70 was better than the previous reading of 52.6 and the market’s forecast of 53.5, further pushing back bets on the timing of the fed’s rate cut.

The dollar index rose further to challenge the 98.00 mark, the short-term pressure above 98.50 near, then the pressure above 99.00 line, the short-term support below 97.50, then the support below 97.00 line.

GBP/USD

The Markit services PMI came in better than expected. Overall, private sector output fell in October, contracting in four of the past five months, the worst performance since 2009. The seasonally adjusted UK industry-wide output index rose to 49.5 in October from 48.8 in September, indicating a weaker pace of contraction but a similar pace of decline in new business.

The latest YouGov poll showed the conservative party’s lead widened, while support for the “leave” party, which opposes the current deal and advocates a tough brexit, slipped, reducing the risk that a hung parliament after the December 12 election would allow the party to take office. BNP paribas analysts expect the bank of England’s November policy meeting to be a neutral event for sterling. Maintain a structurally bullish stance on sterling and remain patient despite the uncertainty surrounding the election result.

Sterling broke through the 1.2900 mark, the lower short-term support at the 1.2800 line, if the effective break through this mark, then the M head formed, there is support at the 200 moving average around 1.2700, then the lower support at 1.2600, the upper pressure is still in the 1.3000 line.

USD/JPY

The relative optimism of boj governor haruhiko kuroda on the economy suggests the most likely next step is for the central bank to keep interest rates where they are rather than cut them further. Fiscal spending under the boj’s loose policy is a “policy mix” and the central bank is not financing government debt.

USD/JPY rose, again challenging the 109.00 mark, with pressure above 109.50 and support below near 108.00.

XAU/USD

Global risk sentiment remains upbeat amid expectations that China and the United States are very close to a partial trade deal. There are reports that China is pushing for further tariff cuts on Chinese imports that the us may agree to in order to reach a deal.

Gold was under pressure, down nearly $30, with support below near 1480, support below near 1460, short-term pressure above 1500, and pressure above 1520.

XAG/USD

Silver effectively fell below the 18.00 mark and approached the 17.50 support, then the lower support was around 17.00 and the upper pressure was in the line of 18.00.

USO/USD

International oil prices maintained their gains on upbeat economic data and a trade deal between China and the United States, which would boost energy demand. New York crude again challenged the 200-day moving average of 57.25, while the top pressure remained at 58.00, but from the current technical trend analysis, crude oil may not continue to rebound, below support at 55.00.

PS: Today focus

18:00 Monthly retail sales in euro zone (%)

23:00 Canada October IVEY quarterly PMI

23:30 changes in U.S. crude oil inventories (10, 000 barrels) for the week ended November 1

21:00 remarks by Charles Evans, member of the 2019 FOMC and President of the Chicago fed.

22:30 speech by John Williams, President of the New York fed and permanent member of the FOMC.

The above views are for reference only, not for ordering basis. Investment is risky, so proceed with caution.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade