The EUR/USD currency pair
- Prev Open: 1.1695
- Prev Close: 1.1682
- % chg. over the last day: -0.11%
The US Consumer Confidence Index decreased to 109.3 points in September from a revised 115.2 level in August. Given the growing trade deficit and anticipation of declining auto sales, such data added to fears of a slowdown in US economic growth. But the dollar index increased amid falling stock indices as investors are concerned about the risk of a default on US sovereign debt.
- Support levels: 1.1620
- Resistance levels: 1.1690, 1.1717, 1.1772, 1.1802, 1.1835
From the technical point of view, the situation with the EUR/USD currency pair is uncertain. On the one hand, the price has broken through and consolidated below the priority change level. On the other hand, the MACD indicator indicates a divergence, which may lead to a false breakdown of this level. Under such market conditions, traders should consider buy trades if the price returns above the priority change level creating a false breakdown zone below. It is best to look for sell trades from the resistance levels near the moving average.
Alternative scenario: if the price breaks out through the 1.1690 resistance level and fixes above, the mid-term uptrend will likely resume.
- – German Retail Sales (m/m) at 09:00 (GMT+3);
- – US Pending Home Sales (m/m) at 17:00 (GMT+3);
- – US FOMC Chair Jerome Powell’s Speech at 18:45 (GMT+3);
- – Eurozone ECB President Lagarde’s Speech at 18:45 (GMT+3).
The GBP/USD currency pair
- Prev Open: 1.3695
- Prev Close: 1.3533
- % chg. over the last day: -1.19%
The British authorities want to use the army to solve the issue of fuel delivery to petrol stations. This news negatively affected the British currency, and with the dollar index rising, the GBP/USD quotes collapsed yesterday.
- Support levels: 1.3525, 1.3483
- Resistance levels: 1.3617, 1.3685, 1.3759, 1.3812, 1.3886.
On the hourly time frame, the GBP/USD trend is bearish. The MACD indicator has become negative without any signs of reversal. Buy trades should be considered only throughout the day and only with short targets from the support levels. Sell trades can be found at the resistance levels above the moving average line, as the price has deviated strongly from the middle values.
Alternative scenario: if the price breaks out through the 1.3759 resistance level and consolidates above, the bullish scenario will likely resume.
- – UK BoE Gov Andrew Bailey’s Speech at 18:45 (GMT+3).
The USD/JPY currency pair
- Prev Open: 110.99
- Prev Close: 111.50
- % chg. over the last day: +0.45%
The Japanese Yen futures continue to decline, which is caused by the strengthening of the dollar index as well as a slowdown in the economic recovery in Japan. But with the restrictions being lifted in Japan as early as September 30, the Japanese Yen may strengthen soon.
- Support levels: 110.95, 110.65, 110.40, 109.95, 109.63, 109.27
- Resistance levels: 111.49
The main trend of the USD/JPY currency pair is bullish. Against the background of the Japanese Yen weakness and strengthening of the dollar index, the USD/JPY quotes continue to grow. But it is obvious that the price cannot reach the upper border of the uptrend channel, while the MACD indicator begins to signal divergence. All these are signs of the buyer's weakness. Under such market conditions, it’s better to look for buy positions from the support levels after a small pullback. The price has deviated strongly from the moving average, and now there is a high probability of decline. Sell positions should be considered only throughout the day from the resistance levels but only after the sellers' initiative.
Alternative scenario: if the price falls below 109.63, the uptrend is likely to be broken.
- – Japan BoJ Gov Haruhiko Kuroda’s Speech at 18:45 (GMT+3).
The USD/CAD currency pair
- Prev Open: 1.2627
- Prev Close: 1.2683
- % chg. over the last day: +0.44%
The Canadian dollar is a commodity currency, so USD/CAD is highly dependent on the dynamics of the dollar index and oil prices. The dollar index increased yesterday, while oil prices decreased. As a result, the USD/CAD quotes increased due to the weakness of the Canadian currency.
- Support levels: 1.2611, 1.2565, 1.2518, 1.2425
- Resistance levels: 1.2701, 1.2774, 1.2891
From the technical point of view, the trend has changed to bearish. The price fell below the moving average and broke down through the priority change level. The MACD indicator has returned to the positive zone. Under such market conditions, it is better to look for buy deals from the support levels, but only with short targets. It is best to look for sell deals from the resistance levels near the moving average.
Alternative scenario: if the price breaks out through the 1.2774 resistance level and fixes above, the uptrend will likely resume.
- – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).
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This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account