Daily Technical Analysis – Sept. 25
The British Pound resumed its gains earlier this week against the US Dollar, and technical studies show that the pair is making a horizontal move within a general bullish path. A break at the support level 1.3450 will allow prices to retreat further to test 1.3406 levels.
The Euro saw a drop during the Tokyo Session Monday, following the German Elections. The elections’ expectations put pressure on the Euro levels but quickly consolidated as the Euro remains the only stable currency at the moment. Despite recent declines, prices still have to break below the 1.1860 and the 1.1836 support levels to confirm continuation of the decline. If the EURUSD pair breaks resistance close to 1.1935, the bearish trans would be affected and set the market to a sideways movement.
The New Zealand Dollar fell by the close of the Tokyo Session Monday, following political instability in New Zealand in the wake of the legislative elections. The ruling party’s victory however increased tension in the financial markets and pushed the New Zealand Dollar lower.
Despite the recent declines witnessed by the pair, prices still have to break and hold below support levels at 0.7250 to confirm the continuation of the decline. Breaking the resistance levels close at 0.7275 would affect the recent Bearish trend and cause a sideways movement in the market.
According to the NZD chart for the 4 hour period, we see a head and shoulders technical pattern formation.
Gold Prices fluctuated as the London Session went underway Monday, in the absence of Economic Data and the stability of the Dollar levels. Investors however, are focused on ECB President Mario Draghi’ speech today, which may throw some light on the future of Monetary Policy in the Euro area.
The return of the selling pressures again will reinforce the previous Bearish trend. A break below 1291 support levels will consolidate the pair and possibly cause a test down to 1287 levels. On the other hand, a reversal above the resistance level at 1298 would ease the temporary selling pressure.
Technical reading shows that USDJPY prices are trying to catch a breath after the recent strong rally. With no signs of a general upward trend change, a break below support levels at 111.64 would allow prices to retreat further and may further test 111.18 levels. At the same time, any breach of near resistance levels at 112.35 would invite buyers to enter the market and possibly test the levels of .112.70
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