Home Daily Analysis Forex Market Overview Daily FX Brief, September 23 – Major Trade Setups – Series of...

Daily FX Brief, September 23 – Major Trade Setups – Series of European Events In Play! 


On Monday, the U.S. dollar remains supported as the U.S. -China officials said the trade talks are going productive. Whereas, the recent remarks of Donald Trump is driving slight safe-haven appeal in the market. 

President Trump drove the safe-haven appeal by saying he was “not looking” for a partial deal, and Chinese officials then dropped goodwill visits to U.S. farm breeders.

Confidence over E.U.’s Juncker’s remarks concerning the likelihood of a breakthrough on the Irish backstop set out to be short-lived, as E.U. leaders declare the U.K. has still not released proposals compatible with the principles of the actual withdrawal agreement.

Economic Events to Watch Today

Let’s took at these fundamentals… 


EUR/USD – Daily Analysis

EUR/USD currency pair found on the bullish track and representing 0.07% gains on the day. As of writing, the pair is presently trading at 1.1025, having placed a low of 1.1010 earlier today.

The EUR/USD currency pair could meet the further gains if the preliminary German and Eurozone Purchasing Managers data release against the forecast. The EUR/USD currency pair dropped around 0.50% last week to trade precisely within the past weeks high and low.  

The pair performed a bearish inside bar candlestick pattern which can be seen on the weekly chart. Today, all of the eyes will be on German Markit Manufacturing PMI (Sep), which is scheduled for release at 07:30 GMT. According to the forecast, the index is expected to release at 44.00 vs. 43.5 in August. Eurozone Manufacturing PMI (Sep) is anticipated to release at 47.3 in opposing to 47.00. 

Markets have factored already in the Europan Central bank’s last decision to resume the quantitive easing plan for November. Therefore, the EUR currency could hit the bullish track if the preliminary PMIs released against the estimates.


Daily Support and Resistance

S3 1.0885

S2 1.0956

S1 1.0988

Pivot Point 1.1028

R1 1.106

R2 1.11

R3 1.1171


EUR/USD – Trading Tips

The technical side of the EUR/USD is suggesting reliable support for the EUR/USD around 1.0990, where the violation of this level could place a bearish pressure on the EUR/USD and may trigger a sell-off until 1.0970. Consider staying bearish below 1.2025 today. 

USD/JPY – Daily Analysis

Earlier today, the USD/JPY hit the bullish track to trade at 107.750 area as the trade war discussion remains on the road. On Friday, President Donald Trump showed intentions to secure a deal before the United States Presidential elections in the 2020 Autumn.

As of writing, the USD/JPY currency pair presently trading at 107.74, + up 0.20% and the figures shifted from a bearish of 107.60 to a bullish of 107.75. 

The safe-haven pair was trading sideways in a narrow trading range of 108.00 to 107.53, The demand for safe-haven Yen slipped after the news that the Chinese negotiators will continue trade talks in October. They also intend to keep it after the sudden departure of the official team of the United States during the Friday. 

Whereas, the United States Treasury yields, the two-year Treasury yields fell from 1.75% to 1.68%. The ten-year yield slipped from 1.79% to 1.72%. Markets are factored 26bp of the rate cut by year-end, and a terminal rate of 1.22%.


Daily Support and Resistance


S3 106.7

S2 107.2

S1 107.38

Pivot Point 107.71

R1 107.89

R2 108.21

R3 108.71

USD/JPY – Trading Tips

The USD/JPY safe-haven currency pair is likely to gain support near 107.450 area along with resistance at 107.750. Below 107.450, the USD/JPY has a potential to go after 107.start exhibiting further bearish trend until 107.450. On the 4 hour timeframe, the 20, 25 and 50-period moving averages are suggesting bearish bias among traders. Consider staying in sell below 107.700 regions to target 107.450 and 107.250.  


GBP/USD – Daily Analysis

The GBP/USD currency pair hit the bearish track after hitting a significant resistance level around 1.2489 due to lack of developments in on Brexit and stronger dollar. The GBP/USD pair is currently trading at 1.2445. 

The United States President Donald Trump and the United Kingdom Prime Minister Boris Johnson recently agreed to make a deal by July 2020. Besides this, both nations have not shared any significant detail about this.

On the Brexit front, the European Union and the United Kingdom Brexit officials still disagree mainly due to the Irish border issue. The United States and China trade tension continues as early departure of Chinese member from the United States are spreading negative vibes. Whereas, the geopolitical tensions are also offering the greenback demand.

Notably, investor’s will eye on the monthly purchasing manager index (PMI) numbers for the United States, whereas investors also will keep the focus on the trade and political news.

Daily Support and Resistance

S3 1.2259

S2 1.2382

S1 1.2427

Pivot Point 1.2504

R1 1.2549

R2 1.2627

R3 1.275

GBP/USD – Trading Tips

On Monday, the GBP/USD is trading sharply bearish after violating the bullish channel at 1.2480. This level is now extending resistance to the Cable, and at the same level, we got 20, 25, and 50 periods EMA which are pushing the GBP/USD prices deeper into negative zone.

The bearish engulfing candle below 1.2480 is suggesting strong bearish bias among traders today. On the lower side, the target is likely to be around 1.2395. 

All the best! 


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