General analysis about forex market: 26th September -30th September

6 years ago forexsimulation 0

EURUSD technical analysis

The medium term uptrend of the EURUSD pair still intact and trying to gain some fresh buying momentum after the dovish statement of the FOMC meeting minute. Currently, price is trading in a neutral zone and trading the pair at the current level will be an immature act. The initial support for this pair lies at 1.1097 level. If the pair fails to hold this level then the next stop for this pair will be the critical support zone of 1.1010 level. A clear decisive move below that level will result in the testing of the critical support zone of 1.1000 level. A decent bounce from that level is well expected. Professional price action traders should look for buying opportunity near the key support level.1.12000 level is the first critical resistance level to limit the upward momentum of this pair. A clear bullish break of that level will lead the pair towards the 1.1263 level. If all the fundamental news comes out positive then we can expect a retest of the critical resistance zone 1.1415 level. Those who are bearish on the EURUSD pair should remain cautious about the weakness of the US dollar. Most importantly it’s highly unlikely that the FED will raise their interest rate in this year. So, buying the USD is not in our mind until the month of December.

GBPUSD technical analysis

The Great Britain Pound tried to recover its losses after the Brexit news on 24th June. Though the pair managed to rally 400+ pips in the north but the rise was limited by the 1.3450 resistance level. Professional traders are considering that the correction for this pair is near to its end after the sharp fall. Near-term, support is situated at 1.29000 level. A trader should use price action confirmation signal in order to go long in this pair. A clear decisive break below that level will bring the pair towards the critical support zone of 1.28000 level. We might see a decent bounce in the GBPUSD pair from that level but extreme level of risk is involved at that level. However, the recent FOMC meeting has clearly declared that the FED are not going to rise their interest until December. This statement has given some sort of ease the Pound investors and minor support level may push the pair significantly higher. The first critical resistance level for this pair is situated at 1.3140 level where the pair might rebind. A  daily close above that level will bring fresh bullish momentum in the GBPUSD pair targeting the next resistance at 1.34234.Shorting the pair from that level will be an immature act since  the daily 100 SMA is right at 1.36000 level. To be precise selling the pair near the 100 days daily SMA with price action confirmation signal will be the best decision. However, the short opportunity at other critical resistance levels can also be executed with tight stop loss using candlestick pattern.

AUDUSD technical analysis

The long term bearish trend in the AUDUSD pair is at risk and currently the price is testing the long-term bearish trend line in the weekly chart. The pair is most likely to face a significant amount of resistance in the 0.78000 level. However, the recent dovish statement in the FOMC meeting has weakened the weekly trend line resistance to a great extent. Considering the fundament and technical analysis, the pair is most likely to break the trend line resistance and lead towards the 0.8000 level. Though the overall bias in the Aussie dollar is still bearish but shorting this pair at the current price level will be an immature act. So, we should look for better selling opportunities at a higher price. The first bearish target for the AUDUSD pair will the daily SMA. Traders are expecting a decent bullish bounce from the 0.7450 level. A decisive move below that level will bring strong downward rally in the pair with an initial target of 0.71000 level. If that level fails then the overall market sentiment will turn strongly bearish and we can expect a ranging movement with the price varying from 0.6800 – 0.7000 level. Considering all the situation, we should look for selling opportunity near the 0.8000 mark with price action confirmation signal.

USDCAD technical analysis

The long term bearish trend in the USDCAD pair is at risk and currently the price is forming nice ascending channel like structure in the daily chart. Right now price is trading just above the 100 days daily SMA where we might see a slight bullish move .However, the upward move of the pair is most likely to be limited by the 200 days SMA near the 1.32437 level. Followed by the dovish statement of FOMC meeting traders should look for selling opportunity near the channel resistance at 1.3300 level. The first initial downward target for this pair would be the channel support at 1.28470 level. A clear decisive break of the channel support zone will bring strong bearish momentum in the market. Traders are expecting strong support near the 1.24440 level. But buying the USDCAD pair will be an immature act considering the recent technical and fundamental situation of US dollar. In the weekly chart, a price has been forming a cluster which is most likely to broken in the southward direction. Selling the pair at higher prices with proper price action confirmation signal should be our prime interest. On the contrary in the absence of definite bullish reversal signal in USDCAD pair, we have no interest in being this pair.