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Daily Market Analysis By FXOpen

GBP/USD Turns Green, USD/CAD Faces Hurdles


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GBP/USD started a fresh increase and it broke the 1.3880 resistance. USD/CAD is recovering, but it is facing hurdles near 1.2520.

Important Takeaways for GBP/USD and USD/CAD



  • The British Pound started a steady increase above the 1.3850 and 1.3880 resistance levels.
  • There is a key bullish trend line forming with support near 1.3875 on the hourly chart of GBP/USD.
  • USD/CAD started a steady decline below the 1.2550 and 1.2520 support levels.
  • There was a break above a short-term declining channel with resistance near 1.2455 on the hourly chart.

GBP/USD Technical Analysis

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After forming a base above the 1.3620 level, the British Pound started a decent increase against the US Dollar. The GBP/USD pair broke the 1.3750 resistance level to move into a positive zone.

The bulls gained pace above the 1.3850 level and the 50 hourly simple moving average. The pair even broke the 1.3950 resistance level. A high was formed near 1.3981 on FXOpen and it is currently correcting lower.

There was a break below the 1.3950 support level. The pair traded below the 50% Fib retracement level of the recent move from the 1.3843 swing low to 1.3981 high.

On the downside, the first key support is near the 1.3875 area. There is also a key bullish trend line forming with support near 1.3875 on the hourly chart of GBP/USD. The trend line is close to the 76.4% Fib retracement level of the recent move from the 1.3843 swing low to 1.3981 high.

If there is a break below 1.3875 and 1.3860, the pair could decline towards the 1.3825 support zone. Any more losses might call for a test of the 1.3720 support.

On the upside, an initial resistance is near the 1.3940 level. The first major resistance is near the 1.3980 level. The main resistance is now near the 1.4000 zone, above which the pair is likely to accelerate higher towards the 1.4050 and 1.4100 levels.




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The US Economic Growth Exceeds Expectations


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The new trading month started with the market participants focusing on Friday’s NFP report. Because the Federal Reserve of the United States has a dual mandate, one that focuses on both price stability and job creation, the way the labor market performs is viewed as decisive for the future path of monetary policy.

While inflation has reached the Fed’s target, there is still a lot of room for improvement in the labor market. Fed’s definition of full employment leaves room for more strength before the rates could be lifted.

In the middle of last week, the Fed signaled that it is in no rush to lift the rates. Most likely, it remains intentionally behind the curve, wanting to see more strength in the labor market before acting.

But inflation and economic growth may trigger action from the Fed sooner than the market expects. We’ve seen the Gross Domestic Product released last week coming out much stronger than the expectations.

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US GDP Grows Much Faster Than Forecasters Expected

The chart above shows a projection for the US GDP made by various institutions in the last quarter of 2020. All of them, including the FOMC, IMF, and OECD, have underestimated the growth of the US economy.

As it turned out, the actual growth path out of the economic recession is much steeper, with positive spillover effects for the main US trade partners. Because the United States is the largest economy in the world, a stronger economic recovery there is enough to add one percentage point or more to global growth.

Before the passage of the America Rescue plan, most forecasters expected that the economy would grow by 3/4%-4.2% in the four quarters of 2021. But the data released last week shows that the economy grows at an annualized rate of 6.4%, much higher than expected.

The solid growth should support the equity markets and keep the US dollar offered. Because most central banks in the developed world have adopted similar monetary policies, which are still loose, the market is dominated by risk-on/risk-off gyrations. Until we see central banks lifting rates, the chances are that the markets will remain correlated.






FXOpen Blog
 
EUR/USD Eyes More Upsides, USD/CHF Turns Red


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EUR/USD started a decent increase and it broke the 1.1850 resistance zone. USD/CHF is declining and it could extend losses below 0.9020.

Important Takeaways for EUR/USD and USD/CHF



  • The Euro started a fresh increase from well below 1.1800 against the US Dollar.
  • There is a key bullish trend line forming with support near 1.1840 on the hourly chart of EUR/USD.
  • USD/CHF failed to stay above the 0.9120 support and extended its decline.
  • There is a major bearish trend line forming with resistance near 0.9070 on the hourly chart.

EUR/USD Technical Analysis
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The Euro formed a support base above 1.1780 and started a fresh increase against the US Dollar. The EUR/USD pair broke the 1.1820 resistance zone to move into a positive zone.

The pair even surpassed the 1.1850 resistance zone and it settled above the 50 hourly simple moving average. Finally, there was a spike above the 1.1900 level. A high was formed near 1.1908 on FXOpen before the pair started a downside correction.

There was a break below the 1.1900 and 1.1880 levels. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.1772 swing low to 1.1908 high.

It is now consolidating above the 1.1850 support zone. The next major support is near the 1.1840 level. It is near the 50% Fib retracement level of the upward move from the 1.1772 swing low to 1.1908 high. There is also a key bullish trend line forming with support near 1.1840 on the hourly chart of EUR/USD.

A downside break below the 1.1840 support could start another decline. The next major support could be near the 1.1780 level.

On the upside, an initial resistance is near the 1.1875 level and the 50 hourly simple moving average. The main resistance is near 1.1900. If there is an upside break above the 1.1900 resistance zone, the price could rise steadily towards the 1.1950 resistance zone.




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Google Green-lights Crypto Ads


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On August 3, Google rolled out its new policy, allowing advertisers to officially offer their cryptocurrency and wallet exchange services online.

The latest set of rules is quite tough. To weed out shadow advertising and crypto fraud, Google requires advertisers to register with the Financial Crime Enforcement Network (FinCEN). ICOs, banned from advertising back in 2018, are still a no-go.

Thanks to this step, the corporation is expected to boost its revenue in the developing sector of digital currencies.

Meanwhile, Ethereum masterminds have begun a countdown to the Thursday launch of the London update on their website. The update will affect how the network handles transaction fees.

Ahead of the update, ETHUSD is showing more positive dynamics compared to BTCUSD.

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On July 31, the BTCUSD market had very small trading volumes (see fig. 1) around the 42k level, and the next day, the price showed bearish dynamics with growing volumes. This indicates a weak demand for the coin at a price of 42k and the dominance of supply. The current decline can be stopped by the level of 36k (or something close to it), where, on July 26, the bitcoin price was growing aggressively under pressure from buyers.




FXOpen Blog
 
Gold Price and Crude Oil Price Show Bearish Signs


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Gold price started a fresh decline from well above $1,825. Crude oil price is also declining and it broke the main $70.00 support zone.

Important Takeaways for Gold and Oil



  • Gold price failed to clear the $1,830 level and it started a fresh decline against the US Dollar.
  • There was a break below a major bullish trend line with support near $1,815 on the hourly chart of gold.
  • Crude oil price also started a fresh decline from well above the $72.00 zone.
  • There is a connecting bearish trend line forming with resistance near $69.25 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

This week, gold price failed once again to clear the $1,830 resistance against the US Dollar. The price traded as high as $1,831 on FXOpen before it started a fresh decline.

There was a break below the $1,820 and $1,810 support levels. The price even broke the $1,805 support and the 50 hourly simple moving average. Besides, there was a break below a major bullish trend line with support near $1,815 on the hourly chart of gold.

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The price spiked below $1,800 before the bulls appeared. The price is now consolidating losses, with an immediate resistance near the $1,810 level.

The first key resistance is near the $1,810 level and the 50 hourly simple moving average. It is near the 38.2% Fib retracement level of the downward move from the $1,831 high to $1,797 low. The main resistance is near the $1,815 level.

A close above $1,815 could set the pace for a larger increase. An initial support on the downside is near the $1,795 level. The first major support is near the $1,785 level. If there is a downside break, the price could test the $1,750 support in the near term.




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GBP/USD and EUR/GBP Target Additional Losses


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GBP/USD started a steady decline from the 1.4000 resistance zone. EUR/GBP also declined and it broke the key 0.8500 support zone.

Important Takeaways for GBP/USD and EUR/GBP



  • The British Pound failed to surpass the 1.4000 resistance zone and started a fresh decline.
  • There is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD.
  • EUR/GBP started a fresh decline from well above the 0.8550 pivot level.
  • There is a key bearish trend line forming with resistance near 0.8500 on the hourly chart.

GBP/USD Technical Analysis

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The British Pound made many attempts to clear the 1.3400 resistance level against the US Dollar, but it failed. As a result, the GBP/USD pair started a steady decline below the 1.3950 level.

The pair even broke the 1.3920 support level and it settled below the 50 hourly simple moving average. Finally, there was a break below the 1.3900 support and the pair traded as low as 1.3855 on FXOpen.

It is now consolidating losses above the 1.3850 support. An immediate resistance on the upside is near the 1.3875 level. The 23.6% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low is also near the 1.3875 level.

The first major resistance is now forming near the 1.3900 zone and 50 hourly simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.3948 swing high to 1.3855 low.

Moreover, there is a major bearish trend line forming with resistance near 1.3915 on the hourly chart of GBP/USD. Therefore, a proper break above the 1.3900 resistance and the trend line could open the doors for a steady increase.

An immediate support on the downside is near the 1.3850 level. A downside break below the 1.3850 level might call for more losses. The next major support is near the 1.3800 level. Any more losses could lead the pair towards the 1.3740 level in the near term.




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Solid Jobs Report Sends the US Dollar Higher


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The US dollar reversed the recent losses and closed the last week higher. Responsible for the move was the July NFP report.

The market expected a positive report, but the outcome exceeded expectations. The US economy added over 940k new jobs in July. Moreover, the data for the previous month was revised higher by over 100k jobs.

All the elements in the report pointed to a strong recovery of the US economy. Besides the better headline number, the Unemployment Rate declined to 5.4% – another positive development.

Sure enough, the US economy still needs to recover about 5 million jobs lost during the pandemic. But solid reports like the one from last Friday bring the Fed closer to fulfill its employment mandate, and thus the tightening of the financial conditions may be just around the corner.

The Fed, as a central bank, has a dual mandate. It aims at price stability and maximum employment.

The price stability mandate is monitored by the changes in inflation. Inflation is already above Fed’s target, even though it is unclear how long is the period the Fed looks at averaging inflation to 2%.

What remains is improvements in the labor market – and the July NFP report shows such improvements. The bias is now that the Fed will announce the tapering of its asset purchases sooner than expected, and so the US dollar ticked higher on the news.

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The Technical Picture Also Favors a Stronger Dollar

From a technical analysis perspective, the US dollar may be at the end of a cycle. The Dollar index formed a double top at the 100 level, but it recently found both horizontal and dynamic support in the 90 area.

A quick look at the rising trend reveals the fact that the Dollar index has kept the series of higher lows intact, just like it is supposed to do in a rising trend. Hence, as long as the index holds above 89, the bias remains bullish.

Moving forward, traders will look for clues about what the Fed will do next. Is the July NFP report strong enough to trigger earlier tapering? If yes, the US dollar’s rally should continue unabated.




FXOpen Blog
 
EUR/USD Could Recover, USD/JPY Gains Momentum


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EUR/USD started a major decline and it traded below 1.1750. USD/JPY is rising and it even broke the 110.50 resistance zone.

Important Takeaways for EUR/USD and USD/JPY



  • The Euro started a major decline below the 1.1800 and 1.1780 levels.
  • There is a key bearish trend line forming with resistance near 1.1725 on the hourly chart of EUR/USD.
  • USD/JPY started a fresh increase above the main 110.00 resistance zone.
  • There is a major bullish trend line forming with support near 110.50 on the hourly chart.

EUR/USD Technical Analysis

After a failed attempt to clear 1.1850, the Euro started a major decline against the US Dollar. The EUR/USD pair broke the 1.1800 support zone to move into a bearish zone.

The pair settled below the 1.1800 level and the 50 hourly simple moving average. It even broke the 1.1750 support level and traded as low as 1.1709 on FXOpen. It is now consolidating gains above the 1.1700 support zone.

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An immediate resistance is near the 1.1725 level. There is also a key bearish trend line forming with resistance near 1.1725 on the hourly chart of EUR/USD.

The first key resistance is near the 1.1750 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.1895 swing high to 1.1709 low. Any more gains could start a decent increase towards the 1.1800 resistance.

The 50% Fib retracement level of the recent decline from the 1.1895 swing high to 1.1709 low is also near the 1.1800 level. A close above 1.1800 could open the doors for a steady increase towards 1.1850.

If not, the pair might continue to move down below 1.1710. An intermediate support is near the 1.1700 level. The next major support is near the 1.1680 level, below which the pair could drop towards the 1.1640 support in the near term.




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AUD/USD and NZD/USD Target Additional Losses


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AUD/USD started a fresh decline from well above the 0.7400 level. NZD/USD also declined below the 0.7020 and 0.7000 support levels.

Important Takeaways for AUD/USD and NZD/USD



  • The Aussie Dollar started a major decline after it failed to clear 0.7440 against the US Dollar.
  • There is a major bearish trend line forming with resistance near 0.7365 on the hourly chart of AUD/USD.
  • NZD/USD also started a fresh decline from well above the 0.7050 level.
  • There was a break below a key contracting triangle with support near 0.7015 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

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After struggling to clear the 0.7440 resistance, the Aussie Dollar started a major decline against the US Dollar. The AUD/USD pair broke the 0.7400 and 0.7380 support levels to move into a bearish zone.

The pair even broke the 0.7350 support and the 50 hourly simple moving average. Recently, there was a recovery wave, but the pair failed to clear the 0.7400 resistance zone. It is now trading below the 0.7345 level and traded as low as 0.7332 on FXOpen.

It is now consolidating losses above the 0.7335 level. An immediate resistance is near the 0.7355 level and the 50 hourly simple moving average. It is near the 38.2% Fib retracement level of the recent decline from the 0.7389 swing high to 0.7332 low.

The next major resistance is near the 0.7360 level. It is close to the 50% Fib retracement level of the recent decline from the 0.7389 swing high to 0.7332 low.

There is also a major bearish trend line forming with resistance near 0.7365 on the hourly chart of AUD/USD. To move into a positive zone, the pair must settle above 0.7360 and the 50 hourly SMA.

An initial support on the downside is near the 0.7335 level. The next major support is near the 0.7320 level. If there is a downside break below the 0.7320 support, the pair could extend its decline towards the 0.7250 level.




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GBP/USD Faces Resistance While GBP/JPY Dives Below 152.00


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GBP/USD started a fresh increase after a drop to 1.3800. Conversely, GBP/JPY is declining and it broke the key 152.00 support zone.

Important Takeaways for GBP/USD and GBP/JPY



  • The British Pound traded as low as 1.3790 before it started an upside correction against the US Dollar.
  • There was a break above a key bearish trend line with resistance near 1.3855 on the hourly chart of GBP/USD.
  • GBP/JPY topped near 153.30 and started a major decline.
  • There was a break below a major bullish trend line with support near 153.00 on the hourly chart.

GBP/USD Technical Analysis

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This past week, there was a steady decline in the British Pound below the 1.3900 level against the US Dollar. The GBP/USD pair even broke the 1.3850 and 1.3820 support levels.

It traded as low as 1.3790 on FXOpen before it started an upside correction. There was a decent recovery wave above the 1.3800 level. The price surpassed the 1.3850 resistance level and the 50 hourly simple moving average.

There was also a break above a key bearish trend line with resistance near 1.3855 on the hourly chart of GBP/USD. The pair is now trading nicely above the 1.3850 level.

It traded as high as 1.3874 and it is now consolidating gains. An immediate support is near the 1.3855 level. It is close to the 23.6% Fib retracement level of the recent increase from the 1.3790 low to 1.3874 high.

The next major support is near the 1.3840 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent increase from the 1.3790 low to 1.3874 high is also near 1.3832. If there is a break below the 1.3830 support, the pair could test the 1.3800 support. If there are additional losses, the pair could decline towards the 1.3660 level.

On the upside, the pair is facing a major resistance near the 1.3880 and 1.3900 levels. A clear break above the 1.3900 resistance could set the pace for a larger increase. The next key resistance is near 1.4000.




Read Full on FXOpen Company Blog...
 
EUR/USD and EUR/JPY: Euro Eyes Recovery


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EUR/USD extended its decline and tested the 1.1700 support zone. EUR/JPY is currently attempting an upside correction above the 128.40 resistance.

Important Takeaways for EUR/USD and EUR/JPY



  • The Euro extended its decline below the 1.1750 and 1.1720 support levels.
  • There was a break below a key contracting triangle with support near 1.1765 on the hourly chart.
  • EUR/JPY also gained bearish momentum below the 129.00 support zone.
  • There is a major bearish trend line forming with resistance near 128.40 on the hourly chart.

EUR/USD Technical Analysis

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The Euro started a major decline after it struggled to clear the 1.1800 resistance against the US Dollar. The EUR/USD pair broke the 1.1750 support zone to move into a bearish zone.

There was also a break below a key contracting triangle with support near 1.1765 on the hourly chart. The pair traded below the 1.1720 support and settled below the 50 hourly simple moving average.

A low is formed near 1.1702 on FXOpen and the pair is now correcting losses. There was a break above the 1.1715 level. An immediate resistance is near the 1.1725 level. It is near the 23.6% Fib retracement level of the recent decline from the 1.1804 high to 1.1702 low.

The main resistance is still forming near the 1.1740 and 1.1750 levels. It is near the 50% Fib retracement level of the recent decline from the 1.1804 high to 1.1702 low.

A clear break above the 1.1750 resistance could push EUR/USD towards 1.1800. On the downside, the 1.1700 level is a major support. Any more losses might lead EUR/USD towards the 1.1650 support zone. The next major support sits near the 1.1620 level.




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Gold Price Eyes More Gains, Crude Oil Price Faces Hurdles


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Gold price started a fresh increase after it tested the $1,680 support. Crude oil price declined and tested the $62.50 support zone.

Important Takeaways for Gold and Oil



  • Gold price started a major increase after a sharp decline to $1,680 against the US Dollar.
  • A key bullish flag is forming with resistance near $1,790 on the hourly chart of gold.
  • Crude oil price started a fresh decline from well above the $70.00 zone.
  • There is a major bearish trend line forming with resistance near $66.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis
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Recently, gold price saw a sharp decline below the $1,750 support against the US Dollar. The price even broke the $1,720 and $1,700 support levels.

However, the bulls were active near the $1,680 zone. A support base was formed above $1,680 and the price started a strong increase. There was a clear break above the $1,720 resistance zone.

The bulls were able to push the price above the $1,750 level and the 50 hourly simple moving average. A high was formed near $1,795 on FXOpen and the price is now consolidating gains. It traded below the $1,780 level.

However, the bulls are protecting the 23.6% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high. There is also a key bullish flag forming with resistance near $1,790 on the hourly chart of gold.

If there is an upside break above the channel resistance, the price could even surpass the $1,800 resistance. The next major resistance could be near the $1,825 level.

Conversely, the price might correct lower further below $1,778. An initial support on the downside is near the $1,765 level. The first major support is near the $1,758 level. It is near the 50% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high.




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AUD/USD Technical Analysis 23rd August 2021


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The Aussie Dollar extended its decline and it tested the 0.7100 zone against the US Dollar. The AUD/USD pair traded as low as 0.7106 and it is now attempting an upside correction.

It recovered above the 0.7130 level, but it is facing many hurdles near the 50 hourly simple moving average. There is also a key bearish trend line forming with resistance near 0.7165 on the hourly chart.

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A clear break above the trend line resistance could lead the pair towards the 0.7200 resistance. The next major resistance for the bulls could be 0.7220.

If the pair fails to clear the trend line resistance, it could start a fresh decline below 0.7130. The next major support is near the 0.7100 level, below which there is a risk of a larger decline in the near term.




FXOpen Blog
 
EUR/USD Aims Higher While USD/JPY Faces Hurdles


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EUR/USD found support near 1.1665 and started an upside correction. USD/JPY is facing a major resistance near 109.85, followed by 110.00.

Important Takeaways for EUR/USD and USD/JPY



  • The Euro started an upside correction above 1.1700 and 1.1720.
  • There was a break above a key bearish trend line with resistance near 1.1735 on the hourly chart of EUR/USD.
  • USD/JPY started a fresh increase, but it is struggling to clear the 110.00 resistance.
  • There is a major bullish trend line forming with support near 109.60 on the hourly chart.

EUR/USD Technical Analysis

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This past week, the Euro saw a major decline below 1.1800 against the US Dollar. The EUR/USD pair broke the 1.1750 support zone to move into a bearish zone.

The pair settled below the 1.1750 level and the 50 hourly simple moving average. It even broke the 1.1700 support level and traded as low as 1.1663 on FXOpen. It is now correcting higher above the 1.1700 resistance level.

There was a break above the 50% Fib retracement level of the key decline from the 1.1804 swing high to 1.1663 low. There was also a break above a key bearish trend line with resistance near 1.1735 on the hourly chart of EUR/USD.

The pair is now consolidating above 1.1730 and the 50 hourly simple moving average. An immediate resistance is near the 1.1760 level. The first key resistance is near the 1.1770 level. It is near the 76.4% Fib retracement level of the key decline from the 1.1804 swing high to 1.1663 low.

The main resistance is near the 1.1800 level. A close above 1.1800 could open the doors for a steady increase towards 1.1850. If there is no break above 1.1760, the pair might continue to move down below 1.1720.

An intermediate support is near the 1.1700 level. The next major support is near the 1.1665 level, below which the pair could drop towards the 1.1600 support in the near term.




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Gold Price and Crude Oil Price Extend Gains


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Gold price started a fresh increase after it tested the $1,780 support. Crude oil price is rising and it is trading above the $65.00 support zone.

Important Takeaways for Gold and Oil



  • Gold price started a decent increase from the $1,780 support zone against the US Dollar.
  • There was a break above a key bearish trend line with resistance near $1,792 on the hourly chart of gold.
  • Crude oil price started a fresh increase from the $61.50 support zone.
  • There is a major contracting triangle forming with resistance near $68.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

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Gold price formed a strong support base above the $1,780 zone against the US Dollar. As a result, the price started a fresh increase above the $1,785 and $1,790 resistance levels.

There was a break above a key bearish trend line with resistance near $1,792 on the hourly chart of gold. The price surpassed the 50% Fib retracement level of the downward move from the $1,809 swing high to $1,780 swing low (formed on FXOpen).

The price is now trading above $1,790 and the 50 hourly simple moving average. An immediate resistance is near the $1,798 and $1,800 levels.

The 50% Fib retracement level of the downward move from the $1,809 swing high to $1,780 swing low is also near the $1,798 level. A close above the $1,798 and $1,800 levels could open the doors for a steady increase towards $1,820.

Conversely, the price might correct lower below $1,795. An initial support on the downside is near the $1,790 level and the 50 hourly simple moving average. The first major support is near the $1,780 level.

A downside break below the $1,780 support zone may possibly spark a sharp decline. In the stated case, the price could test the $1,750 support.




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GBP/USD and EUR/GBP Eye Key Upside Break


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GBP/USD started a steady increase above the 1.3700 resistance. EUR/GBP is consolidating gains above the 0.8550 support zone.

Important Takeaways for GBP/USD and EUR/GBP



  • The British Pound gained pace above the 1.3680 and 1.3700 resistance levels.
  • There was a break above a key bearish trend line with resistance near 1.3720 on the hourly chart of GBP/USD.
  • EUR/GBP started a decent increase and it settled above the 0.8550 pivot level.
  • There is a major bullish trend line forming with support near 0.8565 on the hourly chart.

GBP/USD Technical Analysis

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The British Pound formed a base above the 1.3620 zone against the US Dollar. As a result, the GBP/USD pair started a steady increase above the 1.3680 resistance zone.

The pair even broke the 1.3700 resistance and it settled above the 50 hourly simple moving average. There was also a break above a key bearish trend line with resistance near 1.3720 on the hourly chart of GBP/USD.

The pair is now struggling to clear the 1.3900 resistance barrier. A high is formed near 1.3780 level on FXOpen and the pair is consolidating gains.

There was a dip to the 23.6% Fib retracement level of the upward move from the 1.3679 swing low to 1.3780 high. The first key support is near the 1.3730 level and the 50 hourly simple moving average.

It is close to the 50% Fib retracement level of the upward move from the 1.3679 swing low to 1.3780 high. Any more losses could lead the pair towards the 1.3680 support zone. On the upside, an immediate resistance is near the 1.3780 level.

The main resistance is near the 1.3800 zone. Therefore, a proper break above the 1.3900 resistance could open the doors for a steady increase. The next major resistance for the bulls could be 1.4000. An intermediate resistance is seen near the 1.3950 level.




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EUR/USD Gains Momentum, USD/CHF Eyes Upside Break


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EUR/USD started a decent increase and it broke the 1.1800 resistance zone. USD/CHF is rising, but it is facing a major resistance near 0.9185-0.9190.

Important Takeaways for EUR/USD and USD/CHF



  • The Euro started a fresh increase from well below 1.1700 against the US Dollar.
  • There is a major bullish trend line forming with support near 1.1800 on the hourly chart of EUR/USD.
  • USD/CHF started a fresh increase from the 0.9120 support zone.
  • There was a break above a key bearish trend line with resistance near 0.9165 on the hourly chart.

EUR/USD Technical Analysis

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The Euro formed a support base above 1.1680 and started a fresh increase against the US Dollar. The EUR/USD pair broke the 1.1750 resistance zone to move into a positive zone.

The pair even surpassed the 1.1800 resistance zone and it settled above the 50 hourly simple moving average. Finally, there was a spike above the 1.1840 level. A high was formed near 1.1845 on FXOpen before the pair started a downside correction.

There was a break below the 1.1820 and 1.1810 levels. The pair declined below the 23.6% Fib retracement level of the upward move from the 1.1734 swing low to 1.1845 high.

It is now consolidating above the 1.1800 support zone. There is also a major bullish trend line forming with support near 1.1800 on the hourly chart of EUR/USD. The next major support is near the 1.1790 level.

It is near the 50% Fib retracement level of the upward move from the 1.1734 swing low to 1.1845 high. The main support is near the 1.1780 level. A downside break below the 1.1780 support could start another decline.

On the upside, an initial resistance is near the 1.1820 level. The main resistance is near 1.1850. If there is an upside break above the 1.1850 resistance zone, the price could rise steadily towards the 1.1920 resistance zone.




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NO SIGNIFICANT RESISTANCE ON BITCOIN’S PATH TO $100,000


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Bitcoin will continue the rally that started in August, and after successfully breaking through the psychological resistance level of $50,000, it could further grow to reach $100,000 with minimal resistance, says Bloomberg's analyst and strategist Mike McGlone.

“After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows. What could stop Bitcoin and Ethereum from achieving record highs in 2H may be the more elusive question. Increasing demand and adoption are facing diminishing supply,” McGlone wrote in his report.

Meanwhile, JPMorgan analysts have warned the investors about the “frothy-looking” crypto markets and unstable prices over the long term. They have also noted that the factors boosting the BTC price include continued interest from institutional investors and the general public.

The chart seems to confirm this optimism. An inside bar with low volumes was formed on Saturday, and on Sunday, the price rose paired with increasing volumes. Taking into account the decline in activity typical for a weekend, we see an indication that the market is more interested in rallying than balancing around the 50k level.

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Eurozone Inflation at 10-Year High Ahead of the September ECB Meeting


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Inflation is running hot all over the world, and the Eurozone could not differ. Ahead of the ECB meeting scheduled this Thursday, the inflation rate in the Euro area reached a 10-year high.

Unlike the Federal Reserve of the United States, the ECB has only one mandate – price stability. The ECB measures price stability by bringing inflation below but close to 2%. It recently adjusted its target to a more symmetrical one, something similar to the average inflation targeting in the United States.
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But the bottom line is that the ECB only looks at inflation before changing its monetary policy. The Fed, on the other hand, looks at inflation and job creation. Therefore, while inflation is way above the target in the United States, the Fed will not act on rates until the job market recovers. As we saw last Friday, the last NFP report disappointed – the U.S. economy only created one-third the jobs the market expected.
The Euro Trades with a Bid Tone Ahead of the ECB Meeting

The common currency, the euro, bounced recently from its lows. The EUR/USD exchange rate is up from below 1.17 and traded briefly above 1.19 after last Friday’s NFP report in the United States.

Similar to the EUR/USD, the EUR/JPY is in a bullish trend too. It regained the 130 level and trades with a bid tone.

The market expects that the ECB will signal the removal of its monetary accommodation, and thus the euro is bid against its peers. However, the risk is that the ECB will do nothing and the recent strength in the euro pairs will vanish.

All in all, an interesting week for financial markets lie ahead. Inflation is a problem in Europe, and the ECB will likely reiterate its view that inflation is transitory. If that is the case, and the ECB does nothing to address inflation fears, the euro bulls will be disappointed.




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NATURAL GAS SETTING NEW RECORDS IN THE US AND EUROPE


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On Monday, September 6, US natural gas futures reached the mark of $4.7 per million Btu. This is the highest index since December 2018.

Such a hike in gas prices was triggered by Hurricane Ida: production in the Gulf of Mexico is not going according to plan. The demand for home air conditioning is likely to remain as strong, since it will be as hot in early September.

In Europe, the gas price has climbed even higher due to shortage fears. The threat of shortage stems from the fact that Russia, the largest gas supplier to Europe, has refused to book large volumes of gas pumped through pipelines in Ukraine ahead of the completion of the Nord Stream 2 pipeline.

From a technical point of view, the chart shows that gas prices have reached the overbought level and the line of the long-term upward channel. This increases the likelihood of a rollback.

Whether you would like to take a risky position against an uptrend, or wait for a pullback (for example, closer to the strong support of 4.200 or 4.500) to enter a long position at the end of it, FXOpen is ready to be your reliable partner.




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