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Daily FX Brief, September 11 – Major Trade Setups & EOA & PPI Reports On Radar! 

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A day before, the greenback kept trading within a tight range, with the Dollar Index closing flat on the day at 98.35. The euro was little changed at $1.1049.

The British pound edged up 0.1% to $1.2357. Official data showed that U.K. jobless rate fell to 3.8% in the three months to July (vs 3.9% expected and in the three months to June), while average weekly earnings rose 4.0% on year (vs +3.7% expected).

USD/JPY gained 0.3% to 107.61. USD/CAD slid 0.2% to 1.3145. Official data showed that Canada’s housing starts rose to an annualised rate of 226,600 units in August (vs 212,500 units expected).

Economic Events to Watch Today

Let’s took at these fundamentals… 


USD/JPY – Daily Analysis

The USD/JPY currency pair continues to hit the bullish track for the highest level since August 1. The pair is presently trading at 107.69.

Presently, the United States yen-year treasury yield is showing a 3-basis-points decline to 1.71%, during Monday and Tuesday the 10-year yield recovered by 8-basis-points and 9-basis-points.

The USD/JPY upward movement is possibly due to dovish expectations of the Bank of Japan. Moreover, with the pickup in international growth, taking unexpectedly longer, the Bank of Japan could feel pressure to rate cut more in the cognitive area coming week.

Besides the Shanghai Composite index, the Asian stocks are flashing the gains and look like to be adding to the pressures nearby safe-haven Japanese Yen.



At the technical side, the currency pair could test the level of the April 24 and August 1 highs, and pair is currently at 108.07, due to the dovish expectations and if equities continue to bid. Therefore, the Japanese yen may get bid if the European Central Bank prints unexpectedly dovish tomorrow, sending the stocks lower.

Daily Support and Resistance    

S3 106.63

S2 107.03

S1 107.28

Pivot Point 107.43

R1 107.68

R2 107.83

R3 108.23

USD/JPY – Trading Tips

Consider staying bullish above 107.400 to target 108.200 today. Selling can be seen below 108.200 later during the U.S.session. 


AUD/USD – Daily Analysis

AUD/USD currency pair hit the bullish track of 0.6863 due to the Australian data released at 00:30 GMT. As of writing the currency pair is presently trading at 0.6852. 

The Australian Consumer Sentiment slipped by1.7% to 98.2 in September, having surged to 3.6% to 100 during August from 96.5 in July. 

The decline in consumer trust came when the National Bank of Australia announced a deterioration in business confidence and the business conditions index, and that’s why Australian Dollar getting damage.

During the day, the Australian Dollar currency may increase losses due to declining risk sentiment. As of writing, the expectations on the S&P 500 are showing a 0.10% loss. Came a slight gain in Index on Tuesday.

The indications of increasing factory slowdown in China may keep the Australian dollar under pressure and other risks too. ‘China’s producer price index (PP) dropped 0.8% in August from a year earlier, having fallen 0.3% during July, the official data released on Tuesday showed. 


Daily Support and Resistance

    

S3 0.6817

S2 0.6839

S1 0.6851

Pivot Point 0.686

R1 0.6872

R2 0.6882

R3 0.6904

AUD/USD – Trading Tips

Consider staying bullish above 0.6840 and bearish below 0.6880 as the market is likely to continue trading sideways until and unless we have a strong fundamental update from Australia or China. 

Gold – XAU/USD- Daily Analysis

Precious metal gold prices soared during the Asian session, catching a four-day falling streak on technical buying, amid sentiments that the European Central Bank will launch the stimulus and lower interest rates.

The market continues to trade the risk-on sentiment ahead of monetary policy decisions by the ECB which is due to be released on Sept 12.

In addition to this, the U.S. Federal Reserve next week is also in the highlights, with traders expecting for more easing amid retardation in global growth.


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 has an immediate resistance level 1493, and below this, the market has a good chance to stay bearish until 1488/85. Consider staying bearish under 1,496 area with a stop loss around 1,502 and take profit around 1,485. A bearish breakout can extend sell-off until 1,473 area. 

All the best!  

All the best!  

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