DAILY TECHNICAL ANALYSIS FOR SEPTEMBER 13, 2022
Current level – 1.0121
The single European currency continued to recover the losses it suffered after its aggressive decline since the beginning of summer. The day started off calmly, but after comments on further ECB policy tightening, we saw a break of the 1.0110 resistance and a new monthly high. Around 1.0197, the bears found a good entry price and pushed the EUR/USD back towards 1.0110 by the end of the trading session. Today at 09:00 GMT, we will see the ZEW economic research institute’s assessment of the economic state of Germany. If the data comes out positive, then it could help the euro even more and we could see the rally reach higher peaks than yesterday. However, let’s not also forget the strong pressure from the U.S. dollar, which could only intensify with a positive market reaction to the upcoming U.S. inflation data at 12:30 GMT.
Current level – 142.84
The dollar’s weakness is also reflected in its scuffle against the yen. The consolidation here continues after hitting a new multi-year high last week. The day started with slight fluctuations in the rate and a bounce from the support at 142.11. However, the USD/JPY quickly rose towards the formed resistance at 143.49, where it closed the day. Today, however, the U.S. inflation data report at 12:30 GMT could strengthen the dollar and the market could look to reach a new high by the end of the week. Some surprises, however, should still not be excluded, as data suggesting increased inflation in the U.S., coupled with a declining dollar, could push the currency pair towards its next key support.
Current level – 1.1680
The Cable’s first trading day this week was a successful one. The currency pair started its rise even before the opening of the London session, but after that, the gains accelerated even more. The negative data on the declining GDP and the weaker production did not move the GBP/USD one inch lower and it made a new monthly high of 1.1707. There, however, it found a resistance, which was not breached by the end of the day and so the GBP/USD managed to finish its trading session at around 1.1682. Today, it is important to monitor the data on the current unemployment and the average monthly income in the UK at 06:00 GMT, as well as the U.S. dollar market action following the next U.S. inflation release at 12:30 GMT. Whether the growth will continue or the dollar will regain its strength remains to be seen today.
Midday update for Gold
Gold price settles below 1726.60 level, to continue suggesting the bearish trend for today, waiting to break 1715.00 to reinforce the expectations of continuing the decline in the upcoming sessions, reminding you that our waited targets are located at 1690.00 and 1680.00, while achieving them requires holding below 1726.60.
The expected trading range for today is between 1700.00 support and 1735.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis