Intraday Technical Analysis 19 September

The U.S. Dollar eased back on Monday. The declines came after a renewed threat of trade tariffs. The U.S. administration announced that it would impose new tariffs of 10% on over $200 billion in goods imported from China. A further increase to 25% is expected from January.

President Trump warned that retaliatory measures from China could lead to immediate tariffs on an extra $267 billion in goods of imports.

Data from the U.S. was limited to the Empire State Manufacturing Index. The index slipped to 19 in September. This was lower than the estimates and down from 25.6 from the month before.

In the European session, the British pound posted strong gains, rising to a seven-week high. Brexit news was the primary driver. The EU’s chief Brexit negotiator, Michel Barnier told reporters that the talks between the EU and the UK were being conducted in a spirit of good cooperation.

The Eurozone’s inflation data confirmed that headline CPI rose 2.0% on the year in August, as expected.

The day starts off with the ECB President Mario Draghi speaking at an event in Paris. Draghi’s speech comes in the backdrop of the recent ECB meeting where the central bank did not make any significant changes to monetary policy.

The European session is relatively quiet for the remainder of the day.

The NY trading session starts off with the manufacturing sales report from Canada.  Forecast points to a 1.0% increase on the month. Later in the evening, the current account and trade balance numbers from New Zealand are due. The data comes ahead of the New Zealand’s quarterly GDP report due later in the week.

EURUSD intraday analysis

EURUSD (1.1694): The EURUSD currency pair rebounded on Monday erasing the losses from last Friday. The bounce comes following the decline to the support area of 1.1656 – 1.1626 level. Price action is now on track to test the next main resistance area at 1.1725. If this resistance level is cleared, we expect to see price action moving toward 1.1830 level as the minimum upside target.

GBPUSD intraday analysis

GBPUSD (1.3158): The GBPUSD currency pair extended the gains following the rebound off the 20 periods EMA on the 4-hour chart. Price action is expected to inch higher toward 1.3205 which remains the primary target for now. A retest of the resistance level here could potentially keep the cable within the range until a breakout emerges. Further gains can be anticipated on a breakout above the resistance level. To the downside, the support at 1.3036 is expected to hold.

XAUUSD intraday analysis

XAUUSD (1198.88): Gold prices inched higher only to give up the gains and retest the support level at 1197.50. Price action remains mostly muted in gold. If the support holds, then we can expect to see a rebound off the current support. This will pave the way for gold prices to extend gains toward 1219.75 which remains elusive for the moment. To the downside, a close below 1197.50 could keep gold prices extending the declines to 1183.30 support.