The current technical pattern indicates a possible correction on USD/JPY. The price is testing the 111.30 local resistance now. I plan to sell it, if the price fixes below 111.10. The closest target for taking profit is the 110.75 support level.
My yesterday's expectation for GBP/USD were confirmed. I expect a strong corrective movement on this asset. The price is testing the 1.3475 local support at the moment. I’ll sell the pair, if the price fixes below this mark. The goal of its movement is the 1.3400 round level.
There is a correction on USD/CAD after sharp fall in the end of August. The pair has the potential for recovery. The Inside Bar pattern was formed on the H4 chart. I’ll buy this pair, if it fixes above 1.2335. It may move to the 1.2400 round level. This deal will be medium-term.
The technical picture is mixed on the majors now. Trading instruments are consolidating. Participants of financial markets are waiting for the Fed decision. Most likely, the Central Bank will leave the interest rate at the previous level of 1.00-1.25%. The regulator will publish the updated economic forecasts. It’s also necessary to take into account the FRS comments.
I’ve identified the key levels and will open deals from these marks. I think that there won’t be any strong movements before the FRS decision.
Yesterday, the Fed kept the key interest rate range at the previous level of 1.00-1.25%, as it was expected. This October, the regulator plans to cut assets on its balance sheet. The central bank also published some optimistic forecasts. These events caused a significant demand for the US dollar. It seems to me that the dollar will continue to strengthen against majors in the near future. At the same time, I don’t exclude a short-term technical correction. I’ll enter the market from the S&R levels. The most interesting examples are:
GBP/USD has grown by more than 400 points during the last week. Usually, there is a technical correction after such strong movements. The demand for the US dollar remains at a fairly high level. GBP/USD is consolidating now. I plan to sell the pair, if it fixes below the 1.3565 local support. It may move to 1.3475.
Aggressive sales were observed on the AUD/USD pair yesterday. The chairman of the RBA said that the Central Bank won’t rush to raise the interest rate. I don’t exclude a technical correction in the near future. I’ll buy the pair, if the price fixes above 0.7955. It may move to 0.7990.
The bullish sentiment prevails on AUD/USD since the end of the last week. It is consolidating in a rather narrow range now. I expect the further drop of the AUD/USD quotes. If the price fixes below the 0.7950 local support, I’ll sell the pair. The goal for taking profit is 0.7910.
Aggressive sales are observed on EUR/USD. Angela Merkel was re-elected for a fourth term. At the same time, the German Chancellor's party suffered significant losses in comparison with the past results. The price is testing the 1.1870 support level. If EUR/USD overcomes this mark, I will sell. The pair may move to 1.2825.
Geopolitical risks on the Korean peninsula worsened again. It caused an increase in the demand for safe assets. The bearish sentiment prevailed on USD/JPY yesterday.
The pair is consolidating in the 111.50-111.75 range at the moment. I expect the further drop of USD/JPY.
I’ll sell it, if it fixes below 111.50. The pair may move to 111.10-111.00.
USD/CAD is dominated by purchases now. The demand for the US dollar remains at a fairly high level. Some Fed representatives said that the US economy is stable. The central bank may consider another increase of the interest rate this year. The probability the monetary policy tightening by the Fed is more than 70%. I plan to open deals in the current trend direction. I’ll buy USD/CAD in case of the breakdown and retest of the 1.2390 mark. The pair may move to 1.2450.
The Fed chairman supported the US dollar yesterday. Janet Yellen said that a gradual increase of the interest rate would be appropriate, despite the low inflation level in the country. The demand for USD has grown significantly. The probability of the monetary policy tightening in December 2017 exceeded 75%. At the beginning of this month, the figure was less than 40%.
I expect a bullish sentiment of USD/JPY in the near future. The price has overcome the 112.70 key resistance. I will buy the pair after the retest of this mark. The potential of the move to 113.25.
There are aggressive purchases on USD/CAD today. The price is testing the 1.2400 round level. I expect the further growth of the quotes. I’ll open long positions, if the price fixes above 1.2400. The pair may move to 1.2450.
Aggressive purchases were on USD/CAD yesterday. The head of the Bank of Canada said that they won’t rush to raise the interest rate this year. The Central Bank is concerned about the significant strengthening of the Canadian dollar. The key trading range is 1.2470-1.2515. I don’t exclude a technical correction in the future.
I will sell USD/CAD, if the price fixes below 1.2470. The pair may move to the 1.2410 mirror support.
I’ll buy it in case of the breakthrough and retest of the 1.2515 local resistance. It may move to 1.2550.
NZD/USD is dominated by bears since the beginning of this week. I expect a technical correction now. The price kept the 0.7165-0.7180 local demand zone. I’ll buy the pair, if it fixes above the 0.7210 mark. The pair may move to 0.7250-0.7260.
There is a correction on GBP/USD now. It seems to me, that the trading instrument has the potential for further declining. It may reach the 1.3300-1.3275 level in the medium term. A weak UK GDP report was published recently. The annual growth of the country's economy in the second quarter was revised from 1.7% to 1.5%. This statistic pressures the pound. I’ll open short positions, if the price fixes below 1.3365.
An ambiguous pattern emerged on the AUD/USD currency pair. It is consolidating at the moment. I identified the following key levels and will open positions from these marks:
support: 0.7835, 0.7800
resistance: 0.7860, 0.7885
I’ll sell AUD/USD, if the price fixes below 0.7835 mark. It may move to the 0.7800 round level.
I’ll buy, if the price fixes above 0.7860. The goal for taking profit is 0.7885.
The bearish sentiment prevails on AUD/USD now. The price is testing the 0.7820 local support. I plan to open deals in the current trend direction. I’ll open shorts, if the price overcomes the 0.7800 round level. It may move to 1.7750.
I’m waiting for a correction on NZD/USD that has retained the 0.7165 key support. Bullish Engulfing, a classic PA pattern was formed on the H1 time frame. I’ll buy the pair, if it fixes above 0.7210. The goal for its movement is the 0.7250-0.7260 range.
