Forex news for North American trading on October 7, 2020.

A snapshot of markets near the session close are showing:

  • Spot gold it is trading up $9.82 or 0.52% at $1888. The high for the day reached $1898.12. The low extended to $1872.98.
  • Spot Silver rose by $0.70 or 3.05% at $23.77. Its my price reached $23.98. The low extended to $23.00
  • WTI crude oil futures traded down $0.69 or -1.7% at $39.98. The high price extended to $40.35. The low price reached $39.28. The weekly oil inventory data showed a larger than expected build in crude oil inventories, but a larger than expected drawdown and gasoline inventories.

Today the US stocks move higher after yesterday's shock from Pres. Trump's tweet calling off stimulus negotiations, was replaced by new negotiations for a piecemeal deal.

Top of the list included

  • $135 billion for small businesses,
  • $25 billion for airlines and
  • a one time $1200 stimulus check to all eligible Americans.

Trump officials said there about 10 items where the Dems and the GOP agreed on in total. It makes sense to knock some of those items off the list, and then let the election determine what happens next. Of course politics will continue to be at play just because the election is less than 30 days away.

For the day, stocks cheered the news and moved sharply higher with the:

  • S&P index rising by 1.74%
  • NASDAQ index rising by 1.88%
  • Dow industrial average rising by 1.91%

In the forex, a snapshot of the major indices showed the AUD is the strongest, and the JPY is the weakest. The USD opened marginally lower. Moved even lower into the London close, and gave up some of those declines into the New York close. The biggest move for the greenback was a -0.49% decline vs. the AUD and -0.34% fall vs. the CAD. It rose 0.33% vs. the JPY and 0.15% vs. the NZD.

Forex news for North American trading on October 7, 2020._

Some technical levels into the new trading day include:

  • GBPUSD: The GBPUSD had an up, down and back up day today. The catalyst was a number of Brexit headlines from both UK and EU officials as each works toward the October 15 deadline. Technically, the pair is at 1.2927 (the price is currently trading at 1.2914). Those highs tested the 100 hour moving average currently at 1.2926. In the new trading day if the price is to move higher, it needs to get and stay above that 100 hour moving average. On the downside although the price traded above and below its 200 hour moving average on a number of hourly bars today, that moving average remains a level to get below if the sellers are to take more control. It currently comes in at 1.2886 (and rising). The low for the day at 1.2843 stalled just above the 50% retracement of the range since September 23 at 1.28401.EURUSD
  • EURUSD: in the London morning session, the price moved and stayed above its 100 hour moving average currently at 1.17506. That moving average was tested on a couple hourly bars in the London session. The move higher also reestablished support against an upward sloping trend line going back to September 28. That trend line currently comes in at 1.1759 which is not far off from the current price of 1.1765 into the close. Traders will be eyeing that old trendline and the 100 hour moving average at 1.175064 bias clues in the new day. Stay above is more bullish. Move below is more bearish
  • USDJPY. Although the JPY was the weakest of the major currencies, the USDJPY really didn't run higher in the New York session despite the sharp gains the upside in US stocks (risk on). The high for the day at 106.102 was reached in the London morning session. Nevertheless the good news for the bulls/buyers is that the price moved outside of the top ceiling area that has confined the range over the last 10 or so trading days. That ceiling came in between 105.73 and 105.80. In the new trading day, if the buyers are to remain in control staying above that old ceiling will be eyed. As always that can happen, the buyers still remain in control.
  • USDCAD: The USDCAD fell below its 100 hour moving average in the North American session and stayed below that key barometer for buyers and sellers in the session. That level currently comes in at 1.32859. The prices trading to a new session lows as we head into the end of day (at 1.3257). On the downside, the next targets come in at the lows from yesterday around 1.3246 at 1.3241. Move below those levels and we should see further downside probing with 1.3200 as the next major targets. On the topside as lows price can remain below the 100 hour moving average at 1.32859, the sellers remain in control.
  • AUDUSD: The AUDUSD so the day will below its 200 hour moving average (currently at 0.7133 - the low reached 0.70924). In the London morning session the rise off the low saw the pair trade above and below the 200 hour moving average. However in the New York session, Price action was able to stay above that moving average. There were around 4 separate tests of the moving average on the hourly chart in the New York session. In the new day, a move back below that moving average level would be more bearish. Until then, the buyers have the edge with the 100 hour moving average above at 0.71577 as the next target.

Wishing you all good fortune in your trading. Have a good day/morning/evening..