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12 September EURUSD technical analysis - EUR corrects lower
12/09/2017
12 September EURUSD technical analysis – EUR corrects lower

Last week, the greenback plunged to its lowest level since January 2015, with the Euro and Canadian dollar notching multiyear highs. EURUSD is trading around 1.1960, gain insights on this major pair with OctaFX’s 12 September EURUSD technical analysis

12 September, OctaFX – After a quiet start to the week, investors will turn their attention back to the economic data on Tuesday with key inflation numbers from the United Kingdom. National Statistics in London will get the ball rolling at 08:30 GMT with a batch of inflation data covering the retail, consumer and producer levels.

The Retail Price Index is expected to show annual growth of 3.8% in August, compared with 3.6% the previous month. The Producer Price Index (PPI) Output will likely show a reading of 3.1% for the same month. The annual Consumer Price Index (CPI) likely rose to 2.8% in August from 2.6% the previous month.

12 September EURUSD technical analysis

EURUSD intraday analysis

EURUSD H1 chart

The single currency continues to correct lower against the greenback. The EURUSD pair moved below its 100-hour moving average, and reached an intraday low of 1.1945, during the Asian trading session. Price-action on the EURUSD suggests further intraday weakness remains possible. Will sellers likely to target the euro’s monthly time frame, 50-period moving average, located at 1.1871.

The EURUSD remains bearish on an intraday basis whilst trading below the pairs weekly pivot point, at 1.1999. Only a higher time-frame price close below the 1.1660 level can negate the euro’s bullish medium-term outlook. Key intraday technical support is located at the 200-hour moving average. At 1.1938, and the September 7th price low, at 1.1914.

To the upside, key intraday technical resistance for the EURUSD pair is located at 1.1962, 1.1979 and 1.1999. Above the 1.1999 level, further resistance is found at the former swing price high at 1.3039.

GBPUSD analysis

GBPUSD H1 chart

GBPUSD M15 chart

The Bank of England (BOE) has already warned investors that inflation will probably overshoot its target in the short-term as ultra-loose monetary policy compensates for Brexit. Negotiations over the future of UK-EU relations officially began in June following the snap parliamentary election. The election result weakened Prime Minister Theresa May’s mandate for a ‘hard Brexit’ after the Conservatives failed to regain a parliamentary majority.

The British pound traded within a narrow range on Tuesday, although pressure is building back toward the 1.3200 US handle. Cable last reached that milestone in early August before engaging in a multiweek correction. The 1.3200 level is the immediate resistance for the GBPUSD. A clean break above that level would lead to a test of the 1.3220 region. On the opposite side of the ledger, the 1.3150 area offers immediate support, with further downside projected at around 1.3100.

GOLD analysis

Gold chart

XAUUSD M15 chart

A stronger US dollar triggered a sharp downward correction for precious metals on Monday, with gold and silver prices finishing lower on the day. Spot prices fell nearly $20 and were down again on Tuesday. Prices are currently hovering near two-week lows. The outlook on bullion will depend largely on fundamental forces. In terms of short-term momentum, the RSI and MACD show weak underlying momentum.

Disclaimer

This article about 12 September EURUSD technical analysis should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.

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