U.S. Session Brief, Sept 11 - Major Things to Know In U.S. Session, PPI on the Cards!
During the European session, the greenback traded mostly sideways as traders risk appetite increased over stronger economic events from the China and sentiments that the ECB may cut the interest rates in its upcoming meeting. Overall, the forex currencies kept shopping in the close trading ranges before the release of a variety of high impact central bank meetings over the next week.
Today, the market is likely to focus on U.S. economic events like PPI Index and EIA inventories reports which are due during the U.S. Session.
EUR/USD - Downward Trendline Pushing Fiber Lower
As you know, the ECB is due to release monetary policy decision tomorrow; the investors are pricing in the dovish viewpoint ahead of the news release.
Lately, the EUR/USD is showing a sharp sell-off for the same reason mentioned above. Moreover, the U.S. dollar index is attempting to break to a one week high. ECB policymakers are tending to a recovery package that involves a rate reduction, a promise to hold rates low for the further timeframe.
In addition to this, the central bank may also go for compensating banks to cope up with the side effects of negative rates.
EUR/USD - Daily Technical Analysis
The single currency EUR/USD was trading in a narrow range of 1.1020 and 1.1060 for a week, but just now, this range got violated. The EUR/USD is heading lower dramatically towards a next support level of 1.1000.
The Relative Strength Index and MACD are also suggesting bearish bias among traders. Besides that, the bearish engulfing candle on the 4-hour timeframe is also proposing a sharp bearish bias.
EUR/USD - Daily Technical Levels
1.0997 1.1072 1.096
1.111 Pivot Point 1.1035
EUR/USD - Daily Trade Sentiment
Investors may stay bearish below 1.1035 today as the market is very much likely to go towards 1.0997 and 1.096.
GBP/USD - Bullish Trendline Breakout
The Cable delivered another effort at 1.2373 resistance recently, but bears managed to secure the pair below it. The GBP/USD pair is lacking volatility since the previous week as investors anticipate the next movement in promoting a UK departure from the European Union.
Besides, the investor's focus is on the EUR/USD as ECB is keeping the pair in highlights, which is why we see less movement in the GBP/USD pairs.
Just an hour ago, a committee of three judges at the Court of Session decided in support of a cross-party group of lawmakers that were questioning the prime minister's movement.
The judges announced the British Prime Minister was striving to block Parliament which represents most of the government to account before of Brexit. The UK government announced it would appeal against the verdict to the Supreme Court in London.
With this, the level of uncertainty and risk has risen, and investors are feeling less confident about the British economy and Sterling. Therefore, we may see bearish bias among Sterling traders.
GBP/USD - Daily Technical Analysis
On the technical side, the GBP/USD is facing a hard time breaking 1.2380 trading level. It has closed series of Doji pattern below the same double top level which is keeping it bearish.
The 50 periods EMA is holding around 1.2260, and at the same level, the GBP/USD may find support. The previous low also extends the support at the same level of 1.2260.
The MACD and RSI are entering the bearish zone and may trigger further sell-off during the U.S. session. So better be careful before taking a buying trade.
GBP/USD - Technical Levels
Pivot Point 1.233
GBP/USD - Daily Trade Sentiment
I will be looking to stay bearish beneath 1.2360 as the market has the potential to drop further until 1.2320 and 1.2286.
Gold - XAU/USD - Bearish on Boosted Risk Appetite
On Wednesday, the precious metal gold prices soared slightly to trade at 1,492 area. Most of the support was extended by hindering concerns across the global economic slowdown and U.S.- China trade tightness.
However, the precious metal is still trading near four-week low placed during the previous session.
Most of the bearish trend got triggered upon the release of Chinese CPI data which came a little more robust than anticipated.
In addition to this, the U.S. treasure yields soared, and global stock markets also surged for a sixth consecutive day, just before the ECB's policy decision. Well, the European Central Bank is expected to set the temper for future interest rate decisions by the U.S. Federal Reserve and the Bank of Japan next week.
XAU/USD - Gold Daily Technical Analysis
On the technical's side, gold continues to trade sideways within a narrow trading range of 1492- 1484. Within this range, we may see gold floating sideways as investors await the PPI figures due later today.
The MACD value is exhibiting a bullish crossover, suggesting nice chances of a bullish reversal. However, this can also be merely a retracement. Anyhow, the closing of candles below 1,487 can drive further sell-off until 1482.
Gold - XAU/USD - Daily Technical Levels
Pivot Point 1504.09
XAU/USD -Daily Trade Sentiment
I would be looking for bullish trades above 1,484 and bearish trades below 1,496. The scenario will change upon bullish or bearish breakout.
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