Daily Report October 3rd 2018: Euro Rebounds as Italy Concerns Pass

Morning Report: 07.00 London

The EUR/USD is rebounding off support around 1.1550 as Italy concerns ease. This reverses yesterday’s losses which marked five days of losses. The EUR/GBP is also on the rise, building on yesterday’s losses as Brexit concerns slow down the pound. The EUR/CHF is also making gains this morning and is heading for its highest closing high since August. The EUR/JPY is also reversing recent losses as support around 131.00 holds.

The GBP/USD is also making gains following yesterday’s failure of 1.3000, with support now becoming resistance.

Other dollar pairs are on the back foot, with the AUD/USD slipping back. The USD/CAD is unchanged and holding last week’s gap lower. The USD/CHF continues to strengthen as safe haven demand diminishes and the dollar takes in safe haven flow.

The USD/JPY is back on the rise after reversing from the high of 114.00 level. The AUD/JPY also hit the brakes hard yesterday, but 81.50 held.

Coming up today

Today, we have UK Services PMI at 09.30.

At 13.05, FOMC member Barking speaks.

ADP non-farm employment change is at 13.15.

At 15.00, we have ISM non-manufacturing PMI.

Crude oil inventories are at 15.30.

FOMC member Brainard speaks at 19.00, with Mester speaking at 19.15.

Fed Chair Powell speaks at 21.00.

Trade Idea

The euro remains resilient in the face of Italy concerns which hints at underlying strength. There could be further upside from here on the EUR/USD despite underlying dollar strength.

October 3rd 2018: Euro Rebounds as Italy Concerns Pass

A good way to play this is a ONE TOUCH trade predicting that the EUR/USD will touch 1.1700 within 5 days for a potential return of 168%.

October 3rd 2018: Euro Rebounds as Italy Concerns Pass

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Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

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