Daily Forex Market Preview, 25/09/2017
The markets were little changed this morning after the weekend elections from Germany and New Zealand. The German election results saw Angela Merkel winning another term as widely expected, but the fringe parties were seen making some inroads. This prompted Ms. Merkel to comment that she expected a better result but said that the good thing was that the status quo remains unchanged.
New Zealand also held elections over the weekend, and exit polls showed no clear winner. The election results are expected to be announced later in the week.
On the economic front, calendar today is marked mostly be speeches from central bankers. BoJ’s Kuroda will be the first to speak, followed by a number of FOMC member speeches. The ECB President Draghi will also be speaking later today.
EURUSD intraday analysis
Free Reports:
EURUSD (1.1928): EURUSD gapped lower on the open this morning, but the price is currently looking to fill the gap from Friday’s close. The resistance level at 1.1954 is currently the main level of interest. A breakout above this level could see further upside in price. On the 4-hour time frame, however, EURUSD is seen maintaining the ranging price action within 1.2085 and 1.1882 levels of resistance and support. This range is likely to persist until further breakout from this range will determine the future trend in prices.
GBPUSD intraday analysis
GBPUSD (1.3529): GBPUSD is seen posting a lower open today, but price action has quickly recovered to fill Friday’s close. GBPUSD remains in a consolidation phase near the top end of the rally. The bullish flag pattern remains in play as GBPUSD was seen testing the support at 1.3483. Price needs to continue to the upside and preferably clear the resistance formed at 1.3589. A breach of this resistance is essential for the bullish flag to be validated. The current bias in GBPUSD remains to the upside unless we see a failure in the bull flag pattern. Resistance at 1.3677 will be initial target followed by 1.3829.
XAUUSD intraday analysis
XAUUSD (1292.55): Gold prices were seen slipping back to test the support at 1290 levels. We can expect some consolidation to take place within the 1300 and 1290 levels in the near term. An upside breakout can be expected off this major support zone that will put gold prices on track to test the 1324 – 1320 levels. A breakout above this resistance will see gold prices rallying to eventually fill the gap from a few weeks ago at 1345 level of resistance. To the downside, in the event that gold prices slip below 1290, a breach of this support could send gold prices lower towards the 1270 – 1260 support.
