Sample Category Title

EUR/USD

Current level - 1.1822

In the case of the single currency, the development of a complex correction is observed, which currently remains limited above the support at around 1.1800. If this zone holds, buyers are likely to re-enter the market, with the main target being at around 1.1897. The first daily resistance for the bulls is the area at around 1.1843. Expectations remain positive, with the market likely to go through a range phase before resuming its uptrend move. Today, traders are awaiting the ECB's decision on interest rates (11:45 GMT) and the following press conference (12:30 GMT). In case the bulls are left disappointed, the support at 1.1800 may get breached and the trend could reverse.

USD/JPY

Current level - 110.10

The pair returned to the range between the support at 109.58 and the resistance at 110.20. The resistance at 110.40 proved again to be a serious obstacle for the bulls. A second failed breach could encourage the bears to slam prices down to the support at 109.58. If they manage to breach this zone, deeper declines can be expected towards 108.00. At the moment, the pair’s direction remains unclear, and it is expected to be more defined in the event of a confirmed breach of either zone.

GBP/USD

Current level - 1.3770

The Cable is in a pullback phase, the key support around 1.3730 was tested, and the entry of buyers confirmed the level. Expectations remain positive – for the resumption of the rally, as it is possible that the market will enter a range phase. The first resistance for the bulls is 1.3788, and their goal in resuming the trend would be the peak at around 1.3851.

The USD/CAD currency pair continued to trend higher in a narrow ascending channel pattern. The currency pair tested the 1.2750 level during yesterday's trading session.

Technical indicators suggest buying signals on the 4H time-frame chart. Most likely, the exchange rate could continue to edge higher during the following trading session.

However, the currency exchange rate could encounter resistance at 1.2728 within this session.

The British pound declined by 51 pips or 0.33% against the Japanese Yen on Wednesday. The currency pair breached the 200– hour simple moving average during yesterday's trading session.

All things being equal, the exchange rate could continue to trend in a descending channel pattern during the following trading session. The possible target for GBP/JPY pair would be near the 151.20 area.

However, sellers could encounter support at the 151.45 level within Thursday's trading session.

On Wednesday, the Australian Dollar declined by 45 pips or 0.61% against the US Dollar. The currency pair breached a support level formed by the 200– hour simple moving average during yesterday's trading session.

Everything being equal, the exchange rate could continue to edge lower during the following trading session. The potential target for bearish traders would be near the 0.7280 level.

However, the lower boundary of a descending channel pattern could provide support for the currency exchange rate within this session.

On Wednesday, the common European currency fell by 45 pips or 0.35% against the Japanese Yen. A breakout occurred through the lower boundary of an ascending channel pattern during Wednesday's trading session.

Given that a breakout has occurred, sellers are likely to continue to drive the price lower during the following trading session. The potential target for the EUR/JPY pair would be near the 129.80 area.

However, bearish traders may encounter support near the psychological level at 130.00 within this session.

The stock market currently acts like a tired climber, moving up in smaller and smaller steps while resting more often. This dynamic can easily be attributed to poor preparation, given how many unprofessional retail investors have entered the markets in recent months.

Most of the market upturn at the start of the week was due to buying shares in a few large companies. For example, Apple shares made a new all-time high of 157.26 early in the week, but yesterday the bulls' efforts were not enough to withstand the sellers' onslaught as it comes from the periphery to the centre.

The American dollar retraced to the levels of early September, which created a headwind for the equities market. On a separate note, Turkish and Brazilian assets were on the sell-off in emerging markets, as their currencies lost over 2.5% since September 7th. This move quite logically complements the 12% collapse in Bitcoin over the same time frame. Large investors, when nervousness increases, offload the riskiest assets first.

Not improving investor's sentiment is a new batch of inflation data from China. Producer prices accelerated to 9.5% y/y in August, markedly higher than the forecasted 9.1% and 9.0% a month earlier. Consumer prices, meanwhile, slowed from 1.0% to 0.8%. Companies in the world's second-biggest economy are facing the steepest rises in product costs since August 2008 but are shy to start passing them on to consumers. This threatens to send Chinese companies' profits plummeting.

But the same situation is worth extrapolating to other major economies of the world, whose data will be released later but which correlate pretty closely with the Chinese data.

Only dovish statements by central bankers can lift the cloud that is gathering over the markets. Today it is worth paying attention to the ECB's rhetoric regarding the outlook for QE and its view on the inflation outlook. On the US side, influential New York Fed President John Williams said that he doesn't see the “substantial” progress in the labour market needed to reduce the massive asset purchases on the Fed's balance sheet.

So far, we are seeing more signs of pressure building up on risky assets, which is increasingly moving from the periphery to the ‘centre', causing the leading European and US indices to fall. The Dow Jones 30 and DAX 30 closed Wednesday below their 50-day averages, falling into the August lows area.

Daily Pivots: (S1) 151.54; (P) 151.82; (R1) 152.17; More...

Intraday bias in GBP/JPY stays neutral first. Further rally is mildly in favor with 151.32 minor support intact. Above 152.27 will target 153.42 resistance first. Decisive break there will argue that whole corrective pattern from 156.05 has completed, and bring retest of this high. On the downside, however, break of 151.32 minor support will turn bias back to the downside for 149.16 support instead.

In the bigger picture, rise from 123.94 is seen as the third leg of the pattern from 122.75 (2016 low). As long as 149.03 support holds, such rise would still resume at a later stage. However, sustained break of 149.03 support will indicate rejection by 156.59. Fall from 156.05 would be at least correcting the whole rise from 123.94. Deeper fall would be seen back 38.2% retracement of 123.94 to 156.05 at 143.78 first.

Daily Pivots: (S1) 130.10; (P) 130.40; (R1) 130.62; More....

Intraday bias in EUR/JPY remains neutral for consolidation below 130.73 temporary top. Further rise is expected as long as 129.75 minor support holds. Corrective fall from 134.11 could have completed at 127.91 already. On the upside, break of 130.73 will resume the rebound from 127.91 to 132.68 resistance next. However, break of 129.75 will dampen this bullish view and bring retest of 127.91 low instead.

In the bigger picture, rise from 114.42 is seen as a medium term rising leg inside a long term sideway pattern. As long as 127.07 resistance turned support holds, further rise is still expected to retest 137.49 (2018 high). However, firm break of 127.07 will argue that the medium term trend has reversed, deeper fall would be seen to 61.8% retracement of 114.42 to 134.11 at 121.94.

Daily Pivots: (S1) 1.2625; (P) 1.2693; (R1) 1.2760; More...

Intraday bias in USD/CAD remains mildly on the upside at this point. With 1.2421 support well defended, rise from 1.2005 is still in progress. Further rally would be seen to retest 1.2947 high first. Break there will target 1.3022 fibonacci level next. On the downside, however, below 1.2492 will resume the fall from 1.2947 to 1.2421 key near term structural support instead.

In the bigger picture, fall from 1.4667 is seen as the third leg of the corrective pattern from 1.4689 (2016 high). It should have completed after hitting 1.2061 (2017 low) and 50% retracement of 0.9406 to 1.4689 at 1.2048. Sustained break of 38.2% retracement of 1.4667 to 1.2005 at 1.3022 will pave the way to 61.8% retracement at 1.3650 and above. Overall, medium term outlook remains neutral at worst with 1.2048/61 support zone intact.

Daily Pivots: (S1) 0.8571; (P) 0.8587; (R1) 0.8596; More...

EUR/GBP continues to lose upside momentum as seen in 4 hour MACD. But further rise is still mildly in favor with 0.8561 minor support intact. Rebound from 0.8448 would target 0.8668 resistance. Firm break there will be a strong sign of near term bullish reversal at least. Next target is 0.8718 resistance. On the downside, break of 0.8561 support, however, would argue that the rebound has completed, and turn bias back to the downside for retesting 0.8448 low.

In the bigger picture, price actions from 0.9499 (2020 high) are still seen as developing into a corrective pattern. Deeper fall could be seen as long as 0.8668 resistance holds, towards long term support at 0.8276. However, firm break of 0.8668 resistance would argue that a medium term bottom was already formed. Stronger rise would be seen to 0.8861 support turned resistance to confirm completion of the corrective pattern.