Technical Analysis 12 September: The Aussie respects level of Resistance
EURUSD, Daily timeframe
On Monday, the euro respected the resistance level at 1.2067 and dropped about 64 pips. The scenarios monitored are:
This could be price temporarily retracing to immediate resistance levels, namely the support at 1.1900. If price on the daily timeframe rejects the level, this could be suitable spot to join in the uptrend. Targets above are 1.2067, 1.2100, 1.2150 and 1.2200.
Price could weaken into a deeper retracement going as far as the support at 1.1600. This is another potential level offering better prices for entry. A bullish rejection candle from the respective level is a must. If there is no such candle, stay put and await further price action.
The pair could start moving sideways between 1.2067 and 1.1900. This is a time to await price breaking out from either side. Opportunities we’re looking for are outside of ranges.
GBPUSD, Daily timeframe
Bias: Pair in Uptrend
We’re in an Uptrending market and opportunities we’d be looking for would be in the predominant direction of the market. On Monday, price closed a few pips below the opening quote but this is not a significant weakness. Developments we’re looking at are the following:
Price heading toward the immediate target and resistance level at 1.3300.This scenario is of course in continuation of the Uptrending market. Macro news events affecting the currency, could further boost price beyond that level into higher territory. Potential targets beyond 1.3300 are 1.3350 and 1.3400.
The cable could respect the resistance level at 1.3300, test it and then drop: the immediate support level is the support at 1.3050. If the day closes below that area, next support level can be found at 1.2800. Both levels could potentially offer entry points for joining the uptrend provided that there is a strong bullish rejection from one of them, showing that the bulls have a solid grip on the price action.
The pair could start lingering around the resistance level at 1.3300 and move sideways until a market catalyst spurs activity and price breaks out or retraces back down. Regardless, this is the scenario that presupposes observing the pair until price action shows clarity and conviction of movements into a specific direction.
AUDUSD, Daily Timeframe
For the time being price is pulling away from the resistance level at 0.8066. The Aussie dropped about 20 pips yesterday and this is the second day of weakness (even if minor). So, where to from now?
Price could continue to move in the same vein and exhibit temporary weakness. The immediate support level it could test is located at 0.7900. From this level, potentially there could be opportunities to do business on the long side. For that, we need a bullish rejection candle closing into positive territory on the larger daily timeframe. Target would be the 0.8066 if this scenario plays out.
We could currently be in a state where price move about the verge of the resistance level ready and waiting for a catalyst to push price up. Targets above are 0.8100, 0.8150 and 0.8200. We need price breaking out and closing above 0.8066 on a daily timeframe.
Price could be hit by surprising negative news and decrease as far as 0.7750. If potential weakness persists, we could see a retracement as far as 0.7505. Those are also levels for potential entries on the long side/ A rejection candle is a must pushing price back into the Uptrend and away from those levels.
We can see that the precious metal has respected the Resistance level at 1338.00 and currently is retracing. The immediate support level that it could test is located at 1300.36. From this level, there could be opportunities for going long with target back into positive territory at 1338.00
Price could be only briefly retracing and if we see a bullish engulfment nullifying days of bearishness that we saw, then this would be a continuation of the uptrend. Potential targets above are 1400.00
Wishing you happy and successful trading!
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