Market Forecast 12/09/2017
EUR/USD Forecast – Euro to Trade Lower
- The Euro is struggling to remain above the 1.1980 level against the US Dollar and might continue to trade lower.
- There was a break below a major bullish trend line with support at 1.1980 on the hourly chart of the EUR/USD pair.
The Euro managed to trade above the 1.2050 level recently against the US Dollar. However, the EUR/USD pair failed to hold gains and later moved below 1.2000.
The downside move is pointing negative signs since the pair is now below the 1.2000 handle and it has breached a major bullish trend line with support at 1.1980 on the hourly chart.
The pair is now trading below the 100 hourly simple moving average with a bearish trend line at 1.1975 on the same chart.
It seems like the pair might continue to trade lower and could even break the 1.1950 support in the near term.
GBP/USD Forecast – More Gains Likely
- The British Pound made a solid ground recently and traded above 1.3200 against the US Dollar.
- There is a crucial bullish trend line forming with support near 1.3200 on the hourly chart of the GBP/USD pair.
- Today in the UK, the Consumer Price Index for August 2017 was released by the National Statistics.
- The forecast was +0.5%, but the actual was better as the CPI increased 0.6% (MoM).
The British Pound started a solid uptrend and moved above 1.3200 against the US Dollar. The GBPUSD pair consolidated below 1.3220 for some time before the UK’s CPI release.
After the positive release, the pair broke the 1.3220 resistance and currently looks set to gain pace above 1.3250.
One might consider buying dips towards 1.3220-1.3200 with a tight 15-20 pips stop.
Today in the UK, the Consumer Price Index for August 2017 was released by the National Statistics. The forecast was slated for a rise of 0.5% in the CPI compared with the previous month.
However, the actual result was above the forecast, as there was an increase of 0.6% in the CPI. In terms of the yearly change, the forecast was a rise of 2.8%, but again it was better since the CPI rose 2.9%.
These results may definitely help the British Pound and GBP/USD to gain traction above the 1.3200 level in the near term.
USD/JPY Forecast – US Dollar is Back in Bullish Zone
- The US Dollar gained pace from the 107.30 low against the Japanese Yen and traded above 109.00.
- There was a break above two bearish trend lines at 108.10 and 108.80 on the hourly chart of the USD/JPY pair.
The US Dollar was under a lot of pressure this past week and traded below 108.00 against the Japanese Yen. The USD/JPY pair traded as low as 107.30 from where it started a recovery.
It seems like buyers gained momentum since they were able to push the pair above the 109.00 handle. There was also a break above two bearish trend lines at 108.10 and 108.80 on the hourly chart.
The pair is now above the 100 hourly simple moving average and the 76.4% Fib retracement level of the last decline from the 109.92 high to 107.30 low.
Therefore, there are high chances of it testing the 109.90-110.00 levels in the near term.
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