Daily Market Report – EUR/USD Towards Confluence Area September 21, 2017

21eurusd

EUR/USD More Downside In View

Price dropped significantly after the FOMC and looks poised to start a corrective phase on the short term. EUR/USD is narrowing on the short term, but it could breakout from this range and could make a significant move. Technically, it could drop much deeper on the short term after the retest of some important resistance levels.

The dollar has taken the lead again as the USDX has climbed much higher since yesterday’s US session, the index is trading in the green, but is facing a tough resistance.

USDX is pressuring the 92.49 major horizontal resistance, a valid breakout will validate a further increase and a USD’s dominance. The USD still needs more support from the United States economy, some positive data in the afternoon could give it the needed bullish spark. The Unemployment Claims are expected to jump from 284K to 302K jobs in the previous week, a better report will boost the greenback.

Price is moving sideways, but it could drop much deeper after the retest of the UML and the upper median line (uml) of the minor descending pitchfork. Actually, it could drop after the failure to reach the confluence area formed at the intersection between the UML with the upper median line (uml). EUR/USD failed to close near the mentioned resistance levels, signaling that is expected to drop significantly. The pair could be attracted by the confluence area formed at the intersection between the median line (ml) with the ML of the ascending pitchfork.

GBP/JPY BOJ Policy Rate Unchanged

GBP/JPY continues to stay higher as the Yen is weakened by the Nikkei’s impressive rally. The index has managed to climb much above the 20320 previous high, but now seems a little exhausted and could slip lower. I’ve said in a previous report that the JP225 is somehow expected to decrease a little after the amazing upside momentum, it could come even to retest the 20058 former resistance before will climb much higher. BOJ kept the interest rate steady at the -0.10%, remains to see how the Yen will react after the BOJ Press Conference.

GBP/JPY reached the 151.66 horizontal obstacle, only a valid breakout will confirm a further increase towards the lower median line (LML) of the ascending pitchfork.

AUD/USD Drops Like A Rock

21audusd

AUD/USD drop fast and could hit new lows in the upcoming hours. It could drop below the 0.7939 previous low and could hit the lower median line (LML) of the major ascending pitchfork. Technically is expected to drop after another spike. Is traded outside the minor ascending pitchfork’s body, a valid breakdown below the LML will open the door for a major drop.

By Olimpiu Tuns

Market Analyst

Risk Disclaimer:

Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions. All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

The post Daily Market Report – EUR/USD Towards Confluence Area September 21, 2017 appeared first on mexgroupblog.

Source:: Daily Market Report – EUR/USD Towards Confluence Area September 21, 2017

About the Author
Multibank Exchange Group (MEX Group) is a multinational financial derivatives dealer. Established in California in 2005, MEX has offices in several countries around the world, including the US, the UK, Australia and China. [space height="20"] Mex Group is regulated by the Australian Securities and Investment Commission (ASIC) in Australia, the Ras al Khaimah Free Trade Zone (RAK) in the United Arab Emirates and the Financial Services Commission (FSC) in the British Virgin Islands. Visit Mex Group's website HERE

Leave a Reply

*