Market Forecast 29/08/2017
EUR/USD Forecast – Euro to Move Higher
- The Euro made a nice upside move and traded above the 1.2000 handle against the US Dollar.
- There was a break above a contracting triangle resistance at 1.2010 on the hourly chart of the EUR/USD pair.
- Germany’ Gfk Consumer Confidence Survey for Sep 2017 posted an increase from 10.8 to 10.9.
The Euro remained in a solid uptrend and recently moved above the 1.2980 and 1.2000 levels against the US Dollar. The EUR/USD pair today traded as high as 1.2069 and remains well bid.
To initiate a solid upside move, there was a break above a contracting triangle resistance at 1.2010 on the hourly chart.
The pair is currently well above the 1.2010 support and 100 hourly simple moving average. On the downside, an initial support is near the 23.6% Fib retracement level of the last wave from the 1.1954 low to 1.2069 high.
On the upside, a break above 1.2069 could take the EUR/USD pair towards 1.2100.
GBP/USD Forecast – Recovery Above 1.2950
- The British Pound recently started a recovery and traded above the 1.2900 handle against the US Dollar.
- There are two bullish trend lines forming with support at 1.2950 and 1.2940 on the hourly chart of the GBP/USD pair.
- Today in the UK, the Nationwide Housing Prices for August 2017 were released.
- The outcome was below the forecast of +0.1%, as there was a decline in prices by 0.1% in August 2017 (MoM).
The British Pound after forming a base above 1.2800 against the US Dollar started recovering. The GBP/USD pair gained pace and moved above the 1.2900 resistance.
The pair recently traded as high as 1.2977 and currently correcting lower. On the downside, an initial support is near the 23.6% Fib retracement level of the last wave from the 1.2872 low to 1.2977 high.
Moreover, there are two bullish trend lines forming with support at 1.2950 and 1.2940 on the hourly chart, which can be considered as buying zone.
Buying dips near 1.2950-40 can be considered in the short term.
UK’s Nationwide Housing Prices
Today in the UK, the Nationwide Housing Prices for August 2017 were released. The forecast was slated for an increase in prices by 0.1% in August 2017 compared with the previous month.
However, the actual result was below the forecast of +0.1%, as there was a decline in prices by 0.1% in August 2017. In terms of the yearly change, the market was looking for an increase of 2.5% in prices. The actual was lower, as there was a rise of 2.1%.
The impact on GBP/USD was minimal and the pair remains above 1.2950.
USD/JPY Forecast – More Declines Below 108.50
- The US Dollar declined sharply below 108.80 against the Japanese Yen.
- There was a break below a crucial bullish trend line with support at 109.10 on the hourly chart of the USD/JPY pair.
The US Dollar remained under a lot of pressure and declined below the 109.00 support against the Japanese Yen. The USD/JPY pair even traded below the 108.80 support and 100 hourly simple moving average.
The pair recently corrected higher, but failed near 109.00. It is likely to decline further below 108.50 in the near term.
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