Home Daily Analysis Forex Market Overview Daily FX Brief, Sept. 09 – Quick Trade Setups In Forex, U.K.’s...

Daily FX Brief, Sept. 09 – Quick Trade Setups In Forex, U.K.’s GDP on the Line!  


Dollar Index recorded a day-low of 98.01 before jumping back to finish low on the day at 98.46, despite a softer-than-anticipated non-farm payrolls figures.

The Sterling went 0.4% to $1.2284, catching a three-day rebound. U.K. work and grants secretary Amber Rudd has retired, calling Prime Minister’s choice to suspend 21 legislators from the parliamentary Conservative party an “act of political vandalism”. Chancellor of the Exchequer Sajid Javid and Foreign Secretary Dominic Raab stated the Brexit plan is unchanged on Sunday. 

The single currency euro plunged 0.1% to $1.1020 as economic data revealed that German industrial production decreased 0.6% on month in July (vs +0.4% expected).

Economic Events to Watch Today

Let’s took at these fundamentals… 


USD/JPY – Daily Analysis

Today in the early Asian market, the USD/JPY currency pair hit the bearish track from 107.00 to 106.6 post jobs data but after some time returned to 106.90. The USD/JPY pair may touch the 107 handles despite United States Nonfarm payrolls during August showing the movement of employment growth at +130,000 against the expected of 150,000. 

Also, -20k in downward corrections were seen in the last couple of months. The underlying trend on job growth in 2019 is leaning towards the lower side: the 12-month mean speed is presently +173,000, the weakest in almost two years. Meanwhile, the industry analysis shows the weaknesses seen on August’s are mostly centred in retailing (-11k, 8th sequential decline) and education (+32k, vs a 6-month 57k average).

On the other hand, Federal Reserve stays in the eyes of all traders, and there is a strong focus on United States treasury yields. The 2-year treasury yields dropped from 1.57% to 1.51% after the employment data. Also, the ten-year yield fell from 1.60% to 1.54%. Certainly, the remarks of Federal Reserve Chairman Powell’s made in Zurich was linked to his speech in Jackson Hole and markets are already assuming a twenty-five-basis-point rate cut during next 19 September’s Federal Reserve meeting.

Daily Support and Resistance

R3: 107.82

R2: 107.35

R1: 107.13

Pivot Point 106.88

S1: 106.66

S2: 106.41

S3: 105.94

USD/JPY– Trading Tips

The technical side of the USD/JPY is still suggesting slightly bullish bias as the pair holds above 106.660, having a strong resistance above 107.077. A bullish breakout of this level can extend further buying until 107.440. Consider saying bullish above and bearish below 106.88. 

AUD/USD – Daily Analysis

AUD/USD currency pair hit the bullish track of 0.6842 due to the Australian data showing the home loans which is increased by 5% during the July, in the previous month came a drop of 0.8%. It should also be noted, the AUD/USD currency pair hit the session highs of 0.6851 before press time, and the pair is currently trading at 0.6842.

According to Forecast, the AUD/USD currency pair may increase to fresh session highs above the last high level of 0.6851, possibly if the assets continue to buying. As of writing the expectations in the S&P 500, reporting a 0.15 increase.

On Friday, the People’s Bank of China reported an aggressive fifty-basis point cut in the reserve requirement ratio, which is scheduled to release from 16 September. Moreover, the Central Bank reported an additional 100-basis point cut in the RRR for city commercial banks.

Such as, the announcement hit the wires in the early morning today that China may announce extra RRR cuts next year. Therefore the markets are also expecting the European Central bank to publish an aggressive rate cut this Thursday.

The country’s dollar-denominated dropped by 1%, whereas its imports declined by 5.6% last month. Moreover, it should also b noted, imports have declined year-on-year, every month this year, except April, which means declining domestic demand.

Daily Support and Resistance

R3: 0.6934

R2: 0.6888

R1: 0.6869

Pivot Point 0.6843

S1: 0.6823

S2: 0.6797

S3: 0.6751

AUD/USD – Trading Tips

The Aussie continues to gain bullish momentum against the U.S. The pair has recently closed “Three White Soldiers” can pattern on the 3-hour timeframe, which suggests the strong potential of having a further bullish bias in the AUD/USD. Consider staying bullish above 0.6843 to target 0.6890 and bearish below 0.6890 to target 0.6843. 

Gold – XAU/USD- Daily Analysis

Today in the early Asian market, safe-haven metal prices rose due to the lower interest rates all over the world and increased the interest in the precious metal. Gold prices edged up 0.15% at $1,517.85 per ounce. 

Mark Mobius stated gold is the way to go according to my view, largely due to the expansion in the money supply. Additionally, the founding partner of Mobius Capital Partners narrated the CNBC. He thinks gold prices will continue to strengthen.

He also said that the Central banks tried to bring interest rates low. Therefore, they expect to stimulate demand and give stimulus to increase.

This is the response of the international economic slowdown. The export of China dropped during the August due to a decline in shipments to the United States and the expectations of the United Kingdom still uncertain due to its PM Boris Johnson plan to push ahead with its Brexit agreement.

United States employment growth unexpectedly slowed in the month of August and received a warning from the White House economic adviser Larry Kudlow that the trade dispute may take many years to reach on positive outcomes.    

Daily Support and Resistance

S3 1461.78

S2 1487.15

S1 1497.02

Pivot Point 1512.52

R1 1522.39

R2 1537.89

R3 1563.26

Gold – Trading Tips

The yellow metal gold is stuck in the sideways trading range of 1,521- 1,503. The bearish breakout of this level could extend sell-off until 1,496, while the bullish bias and violation of 1,521 open room for a movement towards 1,534 for gold. I will consider staying bearish below 1,512.52 and bullish above 1,502 today. 

All the best!  


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