EUR/USD: German data supported the euro area currencies
The single currency in Europe is in an uptrend and reached 1.0000 due to strong data from Germany.
According to the report the level of Fed business expectations index was 75.6 points in October against 75.3 points in September, which exceeded expectations of 75.0 points. Experts estimated the current situation in the region at 94.1 points, exceeding economists' pessimistic expectations of the index reduction to 92.4 points. The business climate was fixed at 84.3 points against 84.4 points in September, exceeding the estimate of 83.3 points. According to analysts the current data reflects the reaching of the "bottom" after 5 months of negative data fixation and now there are chances of the dynamics change in favor of the "bulls" in the pair.
- Resistance levels: 1.0014 and 1.0186.
- Support levels: 0.9876 and 0.9680.
GBP/USD: pound is going to consolidate the upward correction.
The British currency is trading without any movement dynamics and is around 1.1450, thereby updating its highs of September 15. Earlier, the U.S. dollar began to lose ground due to the weak statistics on the volatility of residential real estate prices. GBP/USD reached the level of 1.1500, however the instrument's prospects were limited by the lack of economic announcements from the new head of the United Kingdom government.
According to preliminary estimates, the position of the official will continue the course of his predecessors to stabilize the national economy, but the new Cabinet will inevitably face the challenges of high inflation and disagreements among members of the Conservative Party. Recall that Rishi Sunaki held a meeting with the crowned King Charles III, after which the official said that the national economy is in deep crisis, which caused the global pandemic Covid-19 and destabilization of the energy market amid military invasion of Ukraine by Russia, in addition, the chairman of the Conservative Party intends to correct the mistakes of predecessors. Economists are in no hurry to predict the situation, but they fear that the negative trends will resume in the UK market and the national currency will retreat from its local peak in the absence of active actions from the new government with a budget deficit of 40 billion pounds, record inflation and raising the living threshold of the citizens. Analysts expect to see the Kingdom's mid-term budget by the end of October.
- Resistance levels: 1.1498, 1.1600, 1.1700, 1.1800.
- Support levels: 1.1300, 1.1150, 1.1060, 1.0922.
NZD/USD: The pair is trading sideways
"The New Zealander is showing sideways momentum in Wednesday's trading session, staying around 0.5750. Investors remain low on new deal activity, expecting new drivers for the NZD/USD pair.
Earlier released U.S. home price indexes reduced the potential for the "bulls" of the U.S. dollar, which displayed a decline in virtually the entire currency basket. The S&P/Case-Shiller Home Values Index for August slipped to 13.1% from 16.0%, the fastest pace of deceleration in the history of observation. The index was actively losing ground due to a sharp increase in mortgage rates, which have now reached 7.0%. The analysts assume that the active correction process in the real estate market may give a signal for the American regulator to change its strategy of further interest rates' increase.
- Resistance levels: 0.5800, 0.5850, 0.5900 and 0.5938.
- Support levels: 0.5720, 0.5671, 0.5621, 0.5563.
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Silver signals
In the Asian trading session, the asset is testing the 19.50 mark within the moderate uptrend.
Notable support for the quotes is the weakened U.S. dollar because of the published weak U.S. statistics, according to which the housing costs fell by 0.7% in August against expectations of a 0.6% decline in July. The annual cost index fell to 13.1% from 16.0%, missing investors' forecasts of 14.4%. The index overcame the highest rate of decline since the start of the fixing, and experts are admitting that this will affect the monetary policy of the U.S. regulator. Traders continue to expect a gradual tightening of monetary parameters from the leading world regulators. Thus, on Wednesday the officials of the Canadian department will make a decision on adjustment of interest rates, the next day - the ECB (European Central Bank), according to preliminary estimates, the financial authorities will raise rates by 0.75% and the target of Canada will reach double advantage over the EU value.
- Resistance levels: 19.50, 19.74, 20.00, 20.48.
- Support levels: 19.20, 19.00, 18.75, 18.29.