Daily Technical Analysis. Thursday, Sept. 28
The Euro finished to a six-week low, for the fourth session in a row, following expectations for Interest Rates and Monetary Policy. The Dollar continued to appreciate against major currencies as well as
Technical reading is negative for the pair and a clear control for the sellers on the price movement, which is expected to continue to fall until the price target of 1.1716
The Pound fell against the US Dollar in Thursday’s session for the fifth session in a row. Despite these declines, prices still have to break and hold below the support levels at 1.3360 to confirm the continuation of the decline. Breaking the resistance levels close to 1.3410 would affect the recent bearish trend and cause a sideways movement in the market.
The strength of the US Dollar caused the JPY to drop significantly, following improved US Durable Goods Data and expectations of a Rate Hike at the end of the year.
Buybacks would strengthen the previous bullish trend. The success of the pair in breaking the resistance levels close at 113.25 will enhance the optimism and push the prices to test 113.52 levels. The return of prices below the 112.70 resistance level would on the other hand, temporarily alleviate the optimism.
The New Zealand Dollar fluctuated during the Asian Session on Thursday after the New Zealand Central Bank Meeting, which saw Interest Rates stabilize at 1.75% to meet expectations. The currency sees consistent rallies as the decision to stabilize Interest Rates came in addition to a statement by the Bank that the decline in the New Zealand Dollar will support Inflation Rates and provide balanced growth paths. The technical reading suggests further decline until the price targets 0.7166.
Gold/ XAUUSD prices closed lower as the London session gets underway on Thursday, trading at a five-week low. The Dollar rose against a basket of major currencies, as did the demand for the safe haven yellow metal in the financial markets.
Technical reading indicates that Gold prices are moving in a downtrend and we notice a clear control of the sellers on the price movement, which is expected to continue to fall until the 1275 levels.
Yesterday, the IEA Report showed that US Crude Inventories fell short of expectations by 1.8 million barrels. Technical reading shows that prices are consolidating after the recent strong rally, with no signs of a general upward trend change. The only break of the support levels at 51.67 would allow prices to fall further and may test 51.43 levels. At the same time a breach of near resistance at 52.10 will see more activity from the bulls and prices will possibly test 52.43 levels.