Daily Forex forecast analysis 09-19-2017 – 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 09-19-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro-dollar was hovering around the 4h chart yesterday, ending the day little changed from the opening point. However, today it seems like the bullish momentum is picking up again, as we can see the price already broke above yesterday high and heading towards 1.1983 resistance. Looking ahead, we expect the price to continue higher, as the overall bullish trend is still in play and we have not seen any significant selling activity thus far.
As we already mentioned, the price is heading towards 1.1983 and at this point in time a test of it seems inevitable. If it manages to breach last week highs, we expect the upside leg to continue towards 1.2022 and 1.2070 area.
On the downside, if the selling pressure resumes short-term, the price could retrace towards 1.1950 support and 4h chart 20 EMA. Below that zone, 1.1925 and 1.1893 are expected to cap the downside.
- From Germany, Zew Survey indicators are due at 09:00am GMT.
- From US, Building Permits indicators and Housing Starts figures are due at 00:30pm GMT.
After a mild start of the week, when the price had consolidated in a narrow range, the price had managed to surge short-term on the upside, only to see half of the gains erased until the end of the day. Following the selling leg that formed at the end of last week, the price had been consolidating higher thus far. However, the current price action is not impulsive enough to suggest that the buyers resumed, so sellers might regain control anytime.
So far, the price had managed to find short-term support around the 1h chart 20 EMA. Below the line, we expect 0.9594 and 0.9575 to act as support levels, in case the EMA is breached. Below those two areas, 0.9546 is next.
On the other hand, if the buyers manage to build up on the upside and create a bottoming formation, yesterday high around 0.9639 will be first under pressure, followed by 0.9659 and 0.9683 levels.
There are no important economic indicators due to being released from Switzerland.
Cable retreated lower yesterday, following last week impressive 400 pips leg up, but managed to find support around 1.3464 and had been trading higher since then. Looking ahead, the bullish trend does not seem to be negated by the current bearish price action, from the contrary, buyers had seen an opportunity to buy after yesterday slide, since the price had been trading up and almost all of the candles closed green.
At the time of writing, the price is located around 1.3551 resistance level, where we expect at least some mild reactions from the sell side. A breach of that level could expose 1.3616, last week high and 1.3652.
If the selling pressure resumes again, we might see the price heading lower towards 1.3501 and 1.3464, where we’ve seen buyers rebound. In case a breakout below yesterday low takes place, we expect further bearish gains towards 1.3405.
Dollar-yen had continued to trend higher yesterday, even though the other majors consolidated. Looking at this point in time, the upward leg is very impulsive, covering more than 400 pips, which suggests that the buyers are heavily in control. As long as the price will keep floating above the 4h chart 20 EMA, we expect the buyers to continue to add extra gains. The Fed meeting is scheduled for tomorrow and we might see some volatility ahead of the event.
So far, the price managed to break above the 111.70 resistance level and it is currently trading above it. If the buyers will continue to drive the price higher, we expect 112.12 and 112.38 levels to be reached.
On the downside, sellers should have limited impact and we expect buyers to treat every dip as a buying opportunity. 111.32 and 111.06 are our first support levels, the last one being located around the 4h chart 20 EMA, where we expect buyers to step in as well.
After a new retest of 0.8027 resistance level, the price started to trend impulsively on the downside and breached last week low. During the Asian session today, we’ve seen a price rebound. However, given the fact that the sellers had managed to break lower, that suggests they could continue to push the price on the downside. Also, the price is currently trading below the 4h chart 20 EMA, which is another bearish sign.
If the buyers will manage to push the price higher, we expect it to reach the 20 EMA and 0.7998 resistance level. In case a breakout above that area takes place, further gains might follow towards 0.8027, where the price started to move down yesterday.
On the downside, 0.7941 is the area where the price managed to find support today and it should act the same if it is reached again. A break below will mean 0.7890 might be next.