Market Forecast 25/09/2017

EUR/GBP is under pressure, but holding the 0.8780 support. AUD/USD is moving down and likely to trade towards 0.7920-10 in the near term.

 

EUR/GBP Forecast – Euro Holding Crucial Support

Key Points

  • The Euro is under a lot of pressure and recently traded below 0.8840 against the British Pound.
  • There is a major bearish trend line forming with resistance at 0.8850 on the hourly chart of the EUR/GBP pair.
  • Today in the Euro Zone, the German business sentiment index for Sep 2017 was released by the CESifo Group.
  • The forecast was 116.0, but there was a decline from the last revised reading of 115.7 to 115.2.

    EURGBPH1

The Euro started a downtrend from the 0.8900 swing high against the British Pound. The EUR/GBP pair traded lower and broke the 0.8850 and 0.8820 support levels.

The downside move was such that the pair even broke the 0.8800 handle and the 100 hourly simple moving average. The pair traded towards the 0.8780-0.8770 levels, which is an important support and protected further declines.

The pair is currently correcting higher and trading near the 23.6% Fib retracement level of the last decline from the 0.8884 high to 0.8786 low. On the upside, there is a major bearish trend line forming with resistance at 0.8850 on the hourly chart, which is around the 61.8% Fib retracement level of the last decline from the 0.8884 high to 0.8786 low.

Overall, the pair remains in a downtrend and selling rallies near 0.8830-0.8840 can be considered in the near term.

site (11)

German IFO Business Sentiment Index

Today in the Euro Zone, the German business sentiment index for Sep 2017 was released by the CESifo Group. The forecast was slated for a rise from the last reading of 115.9 to 116.0.

However, the actual result was below the forecast, as there a decline to 115.2. Moreover, the last reading was revised down to 115.9 to 115.7.  The German IFO Current Assessment also posted a decline from the last revised reading of 124.7 to 123.6.

Lastly, the German IFO Expectations index also declined from the last revised reading of 107.8 to 107.4.

The overall result was negative and likely to impact the EUR/GBP pair, and it could even break the 0.8770 support in the near term.

 

AUD/USD – Aussie Dollar To Decline Again

Key Points

  • The Aussie Dollar failed to hold gain above 0.8080 level against the US Dollar and declined.
  • There is a short-term bearish trend line forming with resistance at 0.7965 on the hourly chart of AUD/USD.

 

AUDUSDH1

The Aussie Dollar after a decent upside run above the 0.8050 level against the US Dollar found sellers. The AUD/USD pair traded as high as 0.8099 and started a downside move.

There was a sharp decline and the pair traded below the 0.7940 support and the 100 hourly simple moving average. The pair tested the 0.7900-10 support and is currently correcting higher.

However, the upside move is capped by a short-term bearish trend line forming with resistance at 0.7965 on the hourly chart along with the 100 hourly simple moving average.

As long as the pair is below 0.7970, there is a chance of it moving back towards the 0.7920-10 levels.

 

Risk Disclosure: By trading a leveraged product your capital is at risk.

The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.

For more information on risks, please read our General Risk Disclosure.

Leave a Reply