Daily Forex forecast analysis 09-14-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
Forex Forecast Analysis 09-14-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro was under huge pressure yesterday against the US dollar and the price broke impulsively lower after retreating towards the 4h chart 20 EMA. It seems like the dollar had been boosted by recent activity surrounding the Fiscal plan President Trump had promised during his presidential campaign. Some further details about it are announced to be revealed in 2 weeks and the investors had been very optimistic about this subject.
Looking at the price from a technical perspective, it had treated the 4h chart 20 EMA as resistance and after the impulsive bearish candle we can see only two weak green candles. Further downside gains might follow towards 1.1848 or 1.1821.
On the upside, in case a corrective move starts to build up, 1.1893 might come into play, while a breakout above that point will open further ground towards 1.1917-1.1925, backed by the 4h chart 20 EMA above it.
- French CPI figures are due at 06:45am GMT.
- From US, CPI figures will be released as well at 00:30pm GMT.
The US dollar advanced against the swiss franc as well yesterday, as the political tensions had remained low. Looking at the price action structure, we can see a very impulsive bullish trend that had been floating above the 20 EMA for several days and thus far the sellers had not been able to break impulsively below the EMA, confirming that they remain subdued. As long that will be in play, further gains are expected in the near future.
On the upside, 0.9648 and 0.9662, located little above yesterday high, are expected to act as a short-term resistance, while a breakout above them could open more space for buyers towards 0.9683.
On the downside, sellers should manage to break below the EMA first, in order to be able to advance towards 0.9613 or 0.9594. Below those points, 0.9575 will follow and we expect buyers to have a stronger reaction to it.
- From Switzerland, SNB Interest Rate is due at 07:30am GMT and it should provide no surprise.
Cable had been under pressure yesterday, even though the unemployment rate from UK had dropped by 0.1%. The downside resumed below the 1.3266, last month high and reached a low of 1.3181. Today we have the BOE meeting and interest rate decision. The market will try to find out if some of the board members are concerned about recent spike in inflation. We expect huge volatility around the event.
If the price picks up again, it could encounter short-term resistance around 1.3216-1.3237, where the 1h chart 20 EMA is located as well. Above it, 1.3251 and 1.3266 can act as a barrier in front of the buyers and cap the upside.
If the selling pressure will continue to drive the price lower, 1.3181, yesterday low, will be put under pressure, while a breach of it will expose 1.3166 and 1.3123.
- From UK, BOE Interest Rate Decision + Rate Statement + MPC vote results will be published at 11:00am GMT.
The US dollar advanced further against the yen as well and managed to reach the 110.64 resistance area, where we mentioned yesterday the sellers should manage to cap the upside. So far the upside had been capped but activity had been low around that level. Today CPI figures from US can play a major key, a breakout on the upside being very likely if the numbers will be positive or a continuation lower if the numbers will disappoint.
Until then, we expect the upside to be capped by 110.64 again. A breach of that level will expose 110.89. A breakout above it can open more buying ground towards 111.47 resistance zone.
On the downside, if the 110.64 holds and the upside will be capped the price could retrace lower towards 110.27. Below it, 109.92-109.83 support area + the 4h chart 20 EMA should provide a stronger support.
After hovering around the 4h chart 20 EMA the Aussie had managed to break impulsively lower, almost reaching the 0.7963 support. During the Asian session we’ve seen a rebound higher as the employment figures that were released from Australia were regarded as positive. Looking ahead we expect the US CPI figures to come out and see what impact they will have on the price, since high volatility is expected.
On the upside, the 0.7998 and the 4h chart 20 EMA can act as a resistance zone in front of the buyers, while a breach above it can expose 0.8027 and 0.8044. Just if the US dollar will be again under huge pressure the price can reach the 0.8066 level.
If the selling pressure resumes, however, a new attempt to test the 0.7963 might be under way. Below that area, we have the 0.7941 and 0.7890 as support levels.