Home Daily Analysis Forex Market Overview Daily FX Brief, September 16 – Major Trade Setups – Saudi Arabia...

Daily FX Brief, September 16 – Major Trade Setups – Saudi Arabia Drives Safe Haven!


On Monday, the market opened with dramatic gaps in gold and other safe-haven assets. The U.S. dollar slipped while safe havens and currencies of oil-producing nations gathered on Monday, following an assault on Saudi Arabian refining plants that disturbed global oil supply and intensified Middle East stresses.

On the economic calendar, we don’t have much to trade, but the technical side is offering pretty new setups to trade. Let’s take a look…

Economic Events to Watch Today

Let’s took at these fundamentals… 



EUR/USD – Daily Analysis

The EUR/USD currency pair may come under pressure, due to anxieties of the trade war between the EU and the U.S. The Eurozone’s leader stated on Friday that United States President Donald Trump could force tariffs on the European Union products as the U.S. won in the long-term transatlantic conflict that the illegal subsidies granted to European aerospace giant Airbus.

Leaders announced that Donald Trump could collect anywhere between a total of between €5 billion and €8 billion, added the highest sum was close to $10 billion.

As of writing, the EUR/USD currency pair is trading at 1.1071 and hit the bullish track of 1086 during the Asian trading session. But probably the couple could come under pressure during the European trading hours.

On the other hand, the intensifying geopolitical fears in the middle east may put pressure on the safe-haven treasuries and the greenback.


Daily Support and Resistance

S3 1.0988

S2 1.1017

S1 1.1033

Pivot Point 1.1046

R1 1.1062

R2 1.1075

R3 1.1105.

EUR/USD – Trading Tips

The EUR/USD hasn’t changed much as investors focus shifted to gold and crude oil. Both of the currencies, Euro and U.S. dollar, are weaker and which is the reason we see sideways movement. 

The EUR/USD has immediate support around 1.1060 which is giving an excellent push to EUR/USD. On the upper side, resistance is staying around 1.1100. The pair is expected to trade in between this and offer us a choppy trade opportunity today. 

USD/JPY – Daily Analysis

USD/JPY currency pair hit the bearish market and fell to107.44 due to the attack on Saudi Arabia, and after the attack, the risk desire decreased. As of writing, the pair is presently trading at 107.60 and fluctuating between the 107.44 and 107.91; decline figures are 0.5%.

At the news front, drone attack made a target to the Saudia Arabia during the Saturday on the world’s biggest crude processing plant in Abqaiq and the United Kingdom 2nd largest WTI oil field in Khurais. According to a survey, more than 50% WTI crude oil and gas production has been destroyed in this attack.

The US Treasury yields will perform the leading role in the figures of the USD/JPY currency pair whereas the United States two-year treasury yields surged from 1.71% to 1.80% during the Friday.


Besides this, the ten-year Treasury yields increased from 1.80% to 1.90%. Moreover, the markets are expecting the rate cut of 23 basis-points during the Feral Reserve coming meeting and the final rate of 1.29%, by the way, the Federal Reserve funds rate currently at 2.13%

However, the market continues to expect a deeper rate cut during the coming Federal Reserve meeting, because of St. Louis Fed President James Bullard recently discussed in support of 50-basis point easing. Moreover, trade fears are still high an this is the main issue.


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

The USD/JPY has opened with a bearish gap to place a low of around 107.450. But soon it turned bullish to fill most of the gap around 107.900. For now, consider trading bearish below 108.250 and bullish above 107.450. 

XAU/USD – Daily Analysis

gold prices climbed due to the protest against the 2 Saudi Arabian oil facilities increased tensions in the Middle East and increased the safe-haven metal demand.

Gold Futures for delivery on the Comex exchange gained 0.8% to $1,510.95a troy ounce by 12:38 AM ET (04:38 GMT).

As we know, Saudi Arabia is the biggest WTI crude oil producer in the entire world, and the drone attack on state-owned producer Saudi Aramco’s crude processing facilities at Abqaiq and Khurais has cut the WTI crude oil inventories by 5.7 million barrels pr day. Moreover, the company didn’t give any schedule to the resumption of losses. Anxieties in the Middle East and sent oil prices rising as much as 20%.

Additionally, the drone attack on oil refineries in the heartland of Saudi Arabia WTI industry could be possible that a cruise missile may have been used, and the drone came from the direction of Iran. Although, senior United States official said and indicated the attack came from Yemen.

At the Sino-US trade front, The trade progress also still under the eyes as the United States and China officials are scheduled to meet this week.

It should also be noted that critical decisions for policy by the Central Bank and Federal Reserve are expected to record the movement of the gold.


Daily Support and Resistance

S3 1447.71

S2 1471

S1 1479.45

Pivot Point 1494.29

R1 1502.74

R2 1517.58

R3 1540.87

XAU/USD – Trading Tips

Gold opens with a massive gap as investors are concerned about the uncertainties coming from Saudi Arabia’s oil processing unit attacks. At the moment, it’s trading in 1503, after testing a double top resistance at 1512. Immediate support can be seen around the 1500 area. Whereas, violation of this level can extend the bearish rally until 1489.

All the best!  


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