Market Forecast 26/09/2017

EUR/USD is under huge selling pressure below 1.1840, USD/JPY remains supported above 111.40 and GBP/USD is approaching towards a major support.

EUR/USD Forecast – Euro to Break 1.1800?

Key Points

  • The Euro is under a lot of selling pressure and is trading below 1.1850 against the US Dollar.
  • There is a major bearish trend line with resistance at 1.1830 forming on the hourly chart of the EUR/USD pair.
  • Today, the German Import price index for August 2017 was released by Deutsche Bundesbank.
  • The forecast was +0.1%, but the import price index remained flat at 0% (MoM).

    EURUSDH1

The Euro started a major downtrend from the 1.1900 swing high against the US Dollar. The EUR/USD pair traded below the 1.1880 and 1.1840 support levels to trade as low as 1.1809.

During the downside, the pair broke a couple of bullish trend line supports at 1.1950 and 1.1850. On the upside, there is a major bearish trend line with resistance at 1.1830 forming on the hourly chart.

As long as the pair is below the trend line resistance and 1.1860, there are chances of it testing the 1.1780 level.

 

Germany’s Import Price Index

Today in the Euro Area, the German Import price index for August 2017 was released by Deutsche Bundesbank. The forecast was slated for the index to rise by 0.1% compared with the previous month.

However, the actual result was below the forecast of +0.1%, as the import price index remained flat at 0%. In terms of the yearly change, there was a rise of 2.1%, which was more than the last increase of 1.9%.

The report added that “The index of import prices, excluding crude oil and mineral oil products, increased by 1.7% compared with the level of a year earlier“.

The Euro was under pressure after the release and EUR/USD might soon break the 1.1800 support.

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GBP/USD Forecast – 1.3500 Is Major Resistance

Key Points

  • The British Pound after trading as high as 1.3655 against the US Dollar started a downside correction.
  • There is a key bearish trend line forming with resistance at 1.3495 on the hourly chart of the GBP/USD pair.

GBPUSDH1

The British Pound is under pressure below the 1.3500 level against the US Dollar. However, the GBPUSD pair is still above the 1.3440 level, which is a major support zone.

The pair needs to clear a key bearish trend line with resistance at 1.3495 on the hourly chart to move back in the bullish zone. On the flip side, a break of 1.3440 could ignite a move towards 1.3400.

One can consider buying with a break and close of 1.3500 or with a close above the 100 hourly simple moving average.

 

USD/JPY Forecast – US Dollar Recoveries Remain Capped Further Gains

Key Points

  • The US Dollar started a downside move from the 112.60 resistance against the Japanese Yen.
  • There are two connecting bearish trend lines forming with resistance at 112.10 on the hourly chart of the USD/JPY pair.
    USDJPYH1

The US Dollar declined sharply from the 112.60 swing high against the Japanese Yen. The USD/JPY pair traded towards the 111.50 support where it found a bullish trend line on the hourly chart.

The pair is currently correcting higher with a major resistance near 112.00, 100 hourly simple moving average and the 61.8% Fib retracement level of the last decline from the 112.32 high to 111.48 low.

Selling rallies in the short term towards 112.10 might be considered with a stop above 112.35.

 

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