U.S. Brief, September 17 - Top Trade Setups in Forex - Traders Braces for FOMC Tomorrow!
|Earlier today, during the Asian and European session, the U.S. Dollar gained momentum with the Index rising 0.6% on the day to 98.64 while the single currency Euro euro sank 0.7% to $1.1004 during the Asian session but managed to recover a bit of loss later in the European session.
Regarding U.S. economic data, the Empire State Manufacturing Index fell to 2.0 in September (vs 4.0 estimated) from 4.8 in August.
European stocks also closed in the red, with the Stoxx Europe 600 Index losing 0.6%. Germany's DAX declined 0.7%, France's CAC lost 0.9%, and the U.K.'s FTSE 100 was down 0.6%.
U.S. government bond prices rebounded as demand for haven-assets grew. The benchmark 10-year Treasury yield slid to 1.843% from 1.901% Friday.
The British pound dropped 0.6% to $1.2426. After a meeting with U.K. Prime Minister Boris Johnson, Luxembourg's Prime Minister Xavier Bettel said there were "no concrete proposals at the moment on the table" and the European Union "needs more than just words."
Official data showed that China's industrial production grew 4.4% on year in August (vs +5.2% expected), and commodity-linked currencies were broadly lower against the greenback. AUD/USD fell 0.2% to 0.6862 and NZD/USD lost 0.7% to 0.6341, while USD/CAD gained 0.2% to 1.3242.
EUR/USD - Fibonacci Retracement to Drive Buying
During the Asian session, the buying tone of the European currency still unchanged as of now. The EUR/USD currency pair fluctuates between the range of 1.1010/15 after the releases in the EUR German economic sentiment data.
The EUR/USD currency pair still on the recovery track after the sharp decline to the area below the 1.1000 levels due to heavy buying in the U.S. Dollar and increased geopolitical anxieties in the middle East.
On the economic data front, the single currency Euro remains mostly unchanged today even after the German ZEW economic sentiment came out positive.
The German Economic Sentiment rose to -22.5 for the current month whereas, on the other hand, the present segment dropped to -19.9 against the forecast.
EUR/USD - Daily Technical Analysis
On the technical aspect, the EUR/USD is trading above 61.8% Fibonacci retracement level of around 1.1000 level. The pair has closed a series of bullish reversal candles above 1.1000 area which is signaling a bullish trend in the EUR/USD.
Currently, the pair is increasing by 0.12% at 1.1012 and faces the next hurdle at 1.1125 seconded by 1.1165 and finally 1.1180. On the other side, a break below 1.0995 would target 1.0965 en route to 1.0930.
EUR/USD - Technical Levels
Support Resistance
1.0971 1.1061
1.0938 1.1116
1.0849 1.1205
Pivot Point 1.1027
EUR/USD - Daily Trade Sentiment
The EUR/USD can keep its bullish stance above 1.1000 to target 1.1060. While sell-off can be seen below the 1.0995 area.
AUD/USD - RBA Drove the Market Sentiment
The AUD/USD currency pair fell to fresh 1-1/2 week lows near the 0.6830 during the Asain market sessions. However, the Aussie remained supported during the early European session below the triple bottom are which is now working as a
The AUD/USD currency pair faced some massive selling today and came out of its recent narrow trading range of 0.6890 - 0.6850 over dovish Reserve Bank of Australia.
The meeting showed that Reserve Bank of Australia still ready to deliver further rate cut to support the growth and to hit its 2-3% inflation target, which is sent the Australian Dollar down eventually.
On the other hand, the Federal Reserve is ready to announce its rate cut decision after the two days meeting and is expected to easing again.
AUD/USD - Daily Technical Analysis
The AUD/USD currency pair is facing stiff resistance at 0.6850 area, and closing of candles below this are suggesting excellent sell opportunities. The 50 periods EMA is also proposing a bearish bias amount traders while the RSI and MACD are crossovers on a bearish side.
We may see a continuation of a bearish trend in AUDUSD until 0.6815 today.
AUD/USD - Technical Levels
Support Resistance
0.6854 0.6884
0.6839 0.6899
0.6809 0.6929
Pivot Point 0.6869
AUD/USD - Daily Trade Sentiment
Since the RBA was dovish, we may see selling trades and sentiment in the market today. The AUD/USD can stay bearish below 0.6850 until 0.6810 today.
Gold - XAU/USD - Descending Triangle Pattern
Gold is trading sideways on Tuesday as traders adopted a wait-and-watch approach before of the U.S. Federal Reserve’s monetary policy meeting. The Federal Reserve, the U.S. central bank, is broadly anticipated to lower interest rates. Yellow metal gold was mostly steady at $1,498.64, but just now, we see a bullish wave which has driven gold above 1,500 level.
Gold prices surged higher than 1% early Monday ere achieving 0.6% up for the day after a weekend assault on oil plants in Saudi Arabia ignited worries over security in the Middle East.
Gold - XAU/USD - Daily Technical Analysis
Yesterday, the precious metal gold opened with a massive gap as traders are concerned about the uncertainties coming from Saudi Arabia’s oil processing unit attacks.
For now, gold has filled almost half of the gap in 1497. The same level s working as immediate support currently. Whereas, violation of this level can extend the bearish rally until 1489.
Just like yesterday, the 50 periods exponential moving average is extending resistance nearby 1,505/7 area. While the support lingers at 1,500 psychological level, breach of this can continue bearish rally until 1490.
Support Resistance
1494.38 1505.63
1489.53 1512.04
1478.27 1523.3
Pivot Point 1500.78
XAU/USD - Daily Trade Sentiment
Gold can stay bearish below 1,508 to target 1,500 and bullish above the 1,508 level to continue trading upward.
In addition to this, further selling can be observed under the 1,500 region to amid 1,493 during the U.S. session.
All the best for the U.S. session!
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