Market Forecast 19/09/2017
EUR/USD is likely to break 1.2000 again, USD/JPY remains in an uptrend and GBP/USD might correct a few pips lower in the near term.
EUR/USD Forecast – Euro to Break 1.2000
- The Euro after finding support near the 1.1840 level against the US Dollar recovered well.
- There was a break of a major bearish trend line with resistance at 1.1985 on the hourly chart of the EUR/USD pair.
- Today, the Euro Area Current Account figure for July 2017 was released by European Central Bank.
- The forecast was €22.3B, but the trade surplus was €25.1B, more than the last revised €22.8B.
The Euro corrected lower this week and traded below the 1.1900 support area against the US Dollar. The EUR/USD pair traded towards the 1.1850-40 support area and later started an upside move.
The pair is currently trading near the 1.236 extension of the last drop from the 1.1986 high to 1.1913 low and recently broke a major bearish trend line with resistance at 1.1985 on the hourly chart.
It seems like the pair is in an uptrend and would soon break the 1.2000 level and trade towards the 1.618 extension of the last drop from the 1.1986 high to 1.1913 low at 1.2031.
Euro Area Current Account
Today in the Euro Area, the Current Account figure for July 2017 was released by European Central Bank. The forecast was slated for a trade surplus of €22.3B, compared with the previous month reading of €21.2B.
However, the actual result was above the forecast, as the trade surplus was €25.1B. The last reading was also revised up from €21.2B to €22.8B. The report stated that “This reflected surpluses for goods (€26.4 billion), primary income (€10.9 billion) and services (€2.6 billion), which were partly offset by a deficit for secondary income (€14.8 billion)”.
The Euro gained bids after the release, and EUR/USD is likely to settle above 1.2000 sooner or later.
GBP/USD Forecast – 1.3500 Is Important Support
- The British Pound after trading above the 1.3600 level against the US Dollar struggled to hold gains.
- The GBP/USD pair is currently struggling to hold a major bullish trend line with support at 1.3500 on the hourly chart.
The British Pound gained heavy bids this week and moved above 1.3600 against the US Dollar. The GBPUSD pair traded as high as 1.3617 and later started a correction.
It declined and tested the 1.3465 support and a major bullish trend line with current support at 1.3500 on the hourly chart.
It seems like the pair might correct further in the near term and could even break the 1.3500 support to retest 1.3460.
One might consider selling with a break of 1.3500 in the near term.
USD/JPY Forecast – US Dollar Eyes Further Gains
- The US Dollar is in a solid uptrend above 111.20 against the Japanese Yen.
- There is a connecting resistance trend line forming with resistance at 111.90 on the hourly chart of the USD/JPY pair.
The US Dollar started a nasty uptrend from the 108.20 swing low against the Japanese Yen. The USD/JPY pair surged higher and is currently trading above the 110.00 pivot level.
It seems like the pair might continue to move higher and could even break 112.00 for further gains. An upside hurdle is near a connecting resistance trend line with resistance at 111.90 on the hourly chart.
On the downside, there is a bullish trend line with support at 111.45 where one might consider buying in the short term.
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