Daily Technical Analysis. Tuesday, Sept. 26
The Euro saw weak trading during Tuesday’s session, after hitting a four-week low in yesterday’s session. This decline in the Euro comes after Central Bank President Mario Draghi spoke yesterday before the European Parliament.
A rebound in selling pressures on the pair’s move would reinforce the previous bearish trend. Breaking below the near support levels at 1.1830 will consolidate the pair and open the door to test the 1.1790 levels. Only a return to above the 1.1860 resistance level would ease the selling pressure temporarily.
Technical reading continues to show that prices are still moving within a negative correction to the general upside. The support levels at 1.3460 and 1.3430 are still considered the most important short term levels and the pair’s strength above these levels will restore the confidence of the buyers again and at the same time any change signal Trend over short term that will positively affect the movement of prices
The New Zealand Dollar was lower on Tuesday as Business Confidence Data from New Zealand came in lower than expected. Technical reading is negative for the pair and a clear control for the sellers on price action, which is expected to continue to retreat.
The US Dollar weakened against the Japanese Yen on Tuesday, as demand for safe haven continues amid rising tensions on the Korean Peninsula and the prospects of war.
The JPY’s rally prevails despite the US Dollar’s consolidation before Federal Reserve Chairman Janet Yellen’s speech today. The rally indicates strong demand for the Japanese currency.
Technical reading still shows that prices are still moving within a negative correction to the general upside. The support levels at 111.46 and 111.22 are still considered the most important short-term levels and the pair’s strength above these levels would restore the confidence of the buyers again, and at the same time, any change in the signal trend over the short term will positively affect the movement of prices.
Gold prices rose yesterday to close at 1313.00 an ounce. This rise is due to the investors’ tendency to buy the precious metal as a safe haven, after the North Korean Foreign Minister said that the statements made by US President Donald Trump constitute a declaration of war.
Despite the recent highs in prices, the yellow metal might still have to break stability above the levels of resistance. A drop below the near 1309 support level would affect the recent uptrend and proceed to cause the market, sideways movement.
Crude Oil Futures rose to their highest level in 2017 on Monday, up nearly 4%, closing above $52 a barrel. The uncertainty about the referendum in the Kurdistan Region helped add some political risks to Oil prices, while OPEC figures show a positive reflection on the rebalancing of Oil markets. Brent Crude prices soared to close above $59 a barrel.
And the resumption of buying back would strengthen the previous bullishness. The success of the pair in breaking the resistance levels close to 52.40, will strengthen the optimism and push the commodity to test prices upto 52.90 levels. However, a reversal of prices below the support level of 52.10 will temporarily ease the bias.
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