General analysis about forex market for the month of September

EURUSD technical analysis

The medium term of the EURUSD pair is at risk since the daily uptrend has been broken by the sharp fall of the price. The paired tried to rally upward with fresh new buying power but stopped near the 1.13260 level. The level provided significant amount selling pressure in the pair which tumbled down the pair towards the 1.1231 regions. Currently, the price action scenario in this pair is not indicating any clear momentum. The pair is most likely to find strong support near the 1.1225/00 level. If the support level manages to restrict the downward fall of the price then we can expect another sharp rise in the price. Before the strong upward rally, the pair needs to clear the 1.1350 resistance level in order to initiate fresh buying pressure in the market. Though the long-term scenario suggests bearish momentum in the pair but daily analysis remains neutral. Those who are willing to short this pair can wait for price action confirmation signal near the key resistance level. On the contrary, those who are looking for buying opportunity should wait patiently until the market clears the 1.1350 resistance level with daily bullish closing.

AUDUSD technical analysis

The AUDUSD pair has been sharply falling for the last three days after hitting the high of 0.7730.The critical key resistance level is at 0.7488 level high of 31st august 2016.On Friday the long bearish pin bar is printed on the daily chart in AUDUSD pair which signifies strong bearish pressure in the market. To be precise the daily chart and the weekly chart is strongly suggesting bearish momentum in the market but the recent weakening of the US dollar has been limiting the downfall of this pair. In order to see strong bearish pressure in the market, we need a daily closing below the 0.7488 mark. A daily closing below that level will turn the market sentiment strongly bearish. If the price manages to breach the 0.75000 mark then we can expect a possible retest of the 200-day simple moving average in the daily time frame near the 0.7393 mark. On the contrary, if the FED delivers a dovish statement in the upcoming FOMC meeting minute than we can see a strong rally in the price with a possible retest of the 0.7906 mark. Considering all the parameter the overall scenario for the AUDUSD pair is still bearish. Traders are overly cautious about the current price action scenario since the price is trading too close to the important bearish trend line. So for the long term traders, it’s better to remain bearish in this pair until the FED says the dovish statement in the upcoming FOMC meeting minute.

USDJPY technical analysis

The long term weekly uptrend in USDJPY pair is at risk and most likely to face bearish reversal. The daily chart is also making nice higher lows associated with lower highs in the market. We can expect a strong support near the 101.95 level marked by Fridays low. The 61.8% Fibonacci retracement level also lies in that area drawn from 101.18 to 103.04 levels. The USDJPY pair has too much resistance to overcome at this level since the immediate resistance lies within in 102.64 levels. A break above that level will bring a strong rally upward to test the critical resistance level at 103.79.On the contrary, if the 101.95 level fails to hold the price than we can expect a sharp fall in the price towards the 101.18 level. A daily closing below that level will bring critical zone in action that is 100.00 levels often referred as the major psychological level.

GBPUSD technical analysis

The Great Britain Pound is suffering from heavy loss for the consecutive three days. The last week has been great for the Great Britain Pound since the price has managed to rally upward to touch a high of 1.3433.But the pair faced extreme selling pressure from the 1.3443 level which bought a strong bearish momentum in the pair, driving the price back to the 1.3237 level, temporary support zone for cable. Currently 1.3253 levels are working as the pivot zone for this pair. Price trading below that level is considered as bearish and above that level is slightly bullish for this pair. Considering the entire situation the cable is not yet ready to recover its losses followed by the Brexit event on 24th June 2016.However, the cable might find some hope if the upcoming FOMC meeting minutes end up with the dovish statement.

Summary: Price action scenario and technical parameters suggest that the EURUSD pair is not ready for the bullish reversal in the longer time frame. Strong selling pressure might get triggered at any moment followed by interest rate hike decision during the FOMC meeting minute. The AUDUSD pair is still strongly bearish and currently testing the long-term weekly bearish trend. The price has formed nice rejection in the trend line suggesting imminent fall in the pair. On the contrary, cable is struggling hard to recover its losses due to Brexit event. Though the initial recovery from the cable was a good attempt but sell pressure remains till prominent in the market. To be precise all the major pairs are currently trading within a specified range and waiting for the strong breakout. The upcoming FOMC meeting minute is going to play the major important role for the rest of the year for all the major currency pairs. So it’s better to stay on the sideline until you are extremely convinced with your trade setup like AUDUSD pair.


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