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Daily FX Brief, September 10 – Major Trade Setups & U.K. Jobless Report In Highlights


A day before, the U.S. dollar slid lower, as the single currency Euro and the U.K. Sterling lifted by a growing odds of a Brexit delay. The U.S. Dollar Index slipped 0.1% on the day to trade at 98.33. Whereas, the U.S. government bond prices shifted direction to the downside, as the benchmark 10-year Treasury yield plunged to 1.632% from 1.552% on last Friday.

Economic Events to Watch Today

Let’s took at these fundamentals… 

GBP/USD – Daily Analysis

The trading in Sterling is all about the British Labor market figures. Tha’s the sole fundamental which is likely to drive excellent movement in the British Pound related pairs. 

UK Labor Report – 8:30 GMT

Last month in June, the U.K’s wage growth hastened and scored a high of 3.7% or 3.9%. The optimistic salary figures were only partly depressed by the increase in the unemployment figures from a base level of 3.8% to 3.9%. 

The news for July is probable to dispense a comparable number. The Claimant Count Change, or jobless claims, is likely to report a rise in claims from 28K to 29.3K, placing pressure on the Sterling.


Daily Support and Resistance

R3: 1.2436

R2: 1.237

R1: 1.233

Pivot Point 1.2304

S1: 1.2264

S2: 1.2238

S3: 1.2171

GBP/USD – Trading Tips

On the technical side, GBP/USD has entered the overbought zone, suggesting chances of a bearish bias. Sterling is likely to find immediate support above 20, 25 and 50 periods EMA at 1.2260 area. Consider staying bullish above 1.2285 area with a target of around 1.2360. 


USD/JPY – Daily Analysis

On Tuesday, the USD/JPY is trading higher around 107.285 on the back of bullish technical and fundamental outlook. Both types of analysis are favouring the bullish bias and causing the USD/JPY to breakout to the upside. 

Speaking about the fundamentals, most of the bullish trends in the USDJPY is due to diminishing safe-haven appeal. For instance, rising U.S. Treasury yields, better than expected Inflation data from China and lack of trade war news has faded the risk-off sentiment. 

Lately, the widening the spread among Government bonds of the U.S. and Japan is making the U.S. Dollar an extra engaging investment. Growing demand for hazardous assets is also underpinning the Dollar/Yen.


 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

Technically speaking, the dominant trend is bearish, but USD/JPY has been trading higher since August 26. The central trading range is 109.320 to 104.450. 

The USD/JPY’s 50% to 61.8% retracement zone is found around 106.860, and it’s being tested for now. Consider staying bullish above 106.88 to target 107.400 and 107.620.

Gold – XAU/USD- Daily Analysis

Earlier during the Asain session, the precious metal gold weakened on as the week-long liquidation proceeded. The movement is being boosted by growing appetite for risk and increasing U.S. Treasury yields. 

Gold has even violated the psychological $1500 mark, which apparently triggered a series of sell stops, adding further selling pressure on the precious metal gold. 

Economic figures published earlier in the day revealed China’s August consumer price index (CPI) mounted higher than economists forecast. Whereas, China’s producer’s price index (PPI), a primary gauge of corporate profitability, shrank less than anticipated, prompting Beijing to step up financial stimulus as its conflict with the United States escalates.

Stronger Chinese economy improves bullish sentiment for the stock markets and drives bearish bias of the Gold. 



Daily Support and Resistance

R3: 1540.01

R2: 1522.05

R1: 1510.54

Pivot Point 1504.09

S1: 1492.58

S2: 1486.13

S3: 1468.17

Gold – Trading Tips

The bearish trend in Gold is still dominant over faded demand for haven assets. Gold is heading lower towards 50% Fibo retracement level of 1,482. The aggressive target on the lower side is 1,461, which is likely in a couple of days. Consider staying bearish below 1,504 and bullish above 1,487 to trade the choppy sessions today.

All the best!  


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