Daily Forex forecast analysis 09-27-2017 – 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 09-27-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro continued to lose ground against the US dollar yesterday, losing around 100 pips, top tick to bottom tick. Looking at the price action structure, the bears are the ones in control short-term and we expect the price to continue to advance while being located below the 4h chart 20 EMA, which should act as a pivoting point. On the other hand, buyers would need to drive the price above last week high in order to confirm that they resumed impulsively.
During the Asian session the price had consolidation, probably due to low liquidity and profit taking. The price action points towards a continuation lower and we expect both 1.1744 and 1.1709 support levels to be reached.
On the other hand, if the price starts to retrace higher, we expect it to encounter heavy resistance around 1.1821 and 1.1837 levels. Above that point we have the 20 EMA and 1.1860 level, where we expect sellers to react as well.
- For the EU, Private Loans and Money Supply figures are due at 08:00am GMT.
- From US, we have the Durable Goods Orders figures scheduled at 00:30pm GMT and the Pending Home Sales figures at 02:00pm GMT.
We spoke about a short-term bottoming formation in our yesterday forex forecast and that is exactly what it has happened. You can see that the dollar-swiss bottomed out after reaching the 0.9647 support and it is now located 50 pips above that level. Since the Fed meeting the price action had been very sideways, with an important mention that the sellers had managed to generate new lower lows and the buyers did not manage to break higher.
If the bull will continue to push the price on the upside, 0.9704, where the price is currently located and 0.9725 resistance level, could act as a barrier in front of the buyers. A breach above those levels will open the door towards 0.9742, where selling activity should be more intense.
If the selling pressure resumes, 0.9683 is the first bullish line of defense as we expect it to provide some support, since it acted accordingly yesterday as well. Below that level, 0.9665 and 0.9647 should be exposed.
- From Switzerland, UBS Consumption Indicator is due to being released at 06:00am GMT.
Cable continued to generate new lower lows and lower highs which points towards the fact that the sellers are the ones in control and since we do not see any major change in the price action structure thus far, out assumption is that the price will continue to advance on the downside. So far, the 1h chart 20 EMA acted as a dynamic resistance level, capping the upside and serving as a pivoting point for the sellers.
If the price consolidated higher, sellers should step in again around the 1h chart 20 EMA, while if a breach above it takes place, 1.3464 follows. A breakout above the lather could open more buying space towards 1.3501 and 1.3551.
On the downside, if the price action structure will remain the same, we expect the sellers to put pressure again on yesterday’s low and if a breakout above that area will take place, further slides could follow towards 1.3328.
The dollar-yen pair found support around 111.53 level yesterday and it has since them surged around 100 pips until the time of writing. At this point in time it seems like the price is heading towards last week high, where we should see a stronger reaction from the sell side. If that won’t be the case, the bulls might extend the trend higher towards 113.00 area. Traders should expect to see if the price manages to reach last week high and see how it reacts there.
If the price action will continue to advance on the upside, we expect it to encounter resistance around 112.51 and 112.63 resistance level, the lather being located very close towards last week high. A breach above it could open further room towards 113.00 mark.
On the downside, if last week high will manage to cap the upside, a ranging environment could prevail and we expect the price to consolidate lower towards 112.23 and 112.12. By breaching it, sellers would signal they could push the price towards 111.87 or even 111.53.
The Aussie lost significant ground against the US dollar yesterday and we’ve seen the price breaking below 0.7920 support and last week low. So far, the buyers did not manage to generate significant price moves which points towards the fact that the order flow is heavily biased towards the sell side. As long as that condition won’t change, further slides might follow, while if the buyers react, we could see a retracement towards the 20 EMA.
At the time of writing, the price is heading towards yesterday low and given the current price action structure, a breakout lower seems inevitable. 0.7855 and 0.7839, followed by 0.7812 could provide some support for the price.
On the upside, we expect 0.7889 and 0.7920 to act as resistance levels in case a retracement higher takes place. We have the 4h chart 20 EMA above the lather and we expect the upside to be capped around that point.