Below you will find technical analysis of the top forex pairs, commodities, stocks and indices to watch in today’s trading.
The EUR/USD started the week with a decrease, falling below 1.3500. This downward movement was caused by the announcement of worse-than-expected German Flash Manufacturing PMI and also by the quite dovish speech of Mario Draghi. Draghi, the President of ECB, is well-known for his dovish statements due to the fact that he prefers a weaker Euro in order to have better export opportunities. Today at 8AM (GMT) the German Ifo Business Climate will be released. The last 4 results came out according to expectations or slightly better. In case the index shows some better results, we might see the pair back in the 1.3550 area. Except from this, traders should also watch the S&P/CS Composite-20 HPI at 1.00PM (GMT). The index shows the change in the selling price of single-family homes and is expected to be 12.5%, which is 0.4% higher than it was in August. If the index comes out worse-than-expected it will support the upper movement of the pair. The trend is now slightly bullish with support at 1.3475 and resistance at 1.3580.
Trend: Slightly Up
The GBP/USD added some profits during yesterday’s hours but later on reversed and erased most of them. The pair is still keeping the level above 1.6000. Today at 8.30AM (GMT) the BBA Mortgage Approvals will be released. The expectation is really high (38.6K) and might not be reached, which could cause some disappointment on the market and the British pound can suffer some losses. At 12.45PM (GMT) MPC Member Tucker has a speech at the Financing Growth Conference in London. Any information given about the BoE monetary policy might influence the pair significantly. The sentiment is now slightly bullish with support at 1.5990 and resistance at 1.6065.
Trend: Slightly Up
The USD/JPY fell during Monday to its support level at 98.65 but did break it and started to range between 98.60 and 99.00, which lasted even throughout the Asian session. The Yen strengthened yesterday against most of the main currencies despite the fact that the Japanese market stayed closed. Today the traders should watch the U.S. S&P/CS Composite-20 HPI at 1.00PM (GMT) and also the Japanese CSPI at 11.50PM (GMT). The trend is now slightly bullish, but might reverse if the U.S. data come out worse-than-expected. The support is placed at 98.60 and resistance at 99.25.
Trend: Up – Down
After the price of Gold dropped on Friday almost $40/ounce, it settled between $1,320/ounce and $1,330/ounce. On Monday the New York Fed President William Dudley said that the Fed should be able to reduce its monetary stimulus later this year, while St. Louis Fed President James Bullard said that the quantitative easing program could be scaled back in October depending on economic data. The price will still be under pressure and might drop more as the physical demand is not strong to support the price up. The trend is slightly bearish with support at 1,307 and resistance at 1,332.
Trend: Slightly Down
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