The US dollar continues to rally, helped by the resumption of US inflation and the prospect of a limited 25 basis point cut in interest rates at the next Monetary Policy Committee scheduled for early November.
The EUR/USD continues to consolidate, and intermediate support at 1.0958/1.0937 has not produced the expected upward counter-reaction. All that remains is 1.0913/1.0892 to avoid a direct continuation down towards 1.0815. First resistance lies at 1.0980/1.1020. On the other hand, cable is currently testing the support zone between 1.3060 and 1.3020 for, at the very least, an intermediate rebound.
USD/JPY is still testing the highs of the August rebound at 149.40. The structure in progress since the September lows remains constructive as long as the 145.07 level holds out, with an upside target at 151.48/152.10. At the same time, the USD/CHF rebound remains on track as long as the currency does not re-enter its former horizontal consolidation channel at 0.8540/0.8570. The recovery target remains unchanged at 0.8790.
Lastly, in commodity currencies, the aussie broke through its support zone at 0.6800/0.6795, opening the way towards 0.6650 for initial resistance at 0.6795/0.6810. The kiwi has also remained weak since the formation of a bearish encompassing pattern two weeks ago. The figure’s potential is 0.5920, with invalidation at 0.6261. Initial resistance will be found at 0.6158/0.6171 to support the current bearish momentum.
