Technical Analysis for 9/11/2016
EUR / USD – EURO US DOLLAR
Before the results of the president election in the USA are announced, the currency pair EUR/USD becomes more stable and is consolidated around the 1.1000 level. RSI indicator stays neutral.
MACD is in the neutral level as well, as it has been the case earlier. The support is at the 1.1000 level, the resistance is at the 1.1050 level.
A significant influence on the market in general as well as on the behaviour of currency pairs will be exercised by the election of the US president. A significant volatility increase is forecasted, and this trend may continue till the end of 2016. Thus, the further events development will depend on who will win the elections. If Clinton is the winner, the US dollar is expected to grow in price and the currency pair EUR/USD will be stabilized below the 1.1000 level. The target for bears is at the level 1.0900.
Though, if Trump wins the elections, the US dollar price will decrease significantly. The first target for “bulls” is the 1.1200 level, which is the upper channel line of the descending channel.
GBP / USD – BRITISH POUND DOLLAR
The sterling was traded in the narrow channel, though after the Asian session this currency pair has more or less stabilized.
The news from Great Britain about the volume increase in the manufacturing sector, which has exceeded all expectations, also influenced the currency in the best possible way.
But as soon as the American session started, the currency value again descended to the 1.2400 level. MACD is falling, while IRS stays at high level. Resistance is at the 1.2400 level, support – at the 1.2300 level.
The trading with the GBP/USD currency pair has no definite direction for now, as most of traders are waiting for the election results in the USA. At the moment, the currency pair is consolidating under the lower channel line of the descending channel. Though, according to forecasts, the sterling is expected to grow in price up to the 1,2500 level, though there exists a probability that it will fall to the 1,2200 level. It is not recommended to trade with this currency pair for now, as the current situation may bring different surprises, even unpleasant ones.
USD / JPY – US DOLLAR JAPANESE YEN
The president of Japan announced that the country was ready for the possible changes in the currency price, which might be caused by the elections in the USA. Yesterday trading with USD/JPY was characterized as stable. The price was kept at a stable level in the range 104.30 – 104.50, but before the start of the American session the price increased up to 104.50. Further, after the breakout, the price continued to grow, up to the 105.00 level. MACD was stable, while RSI is in the overbought zone. According to the forecasts, RSI is going to move upwards.
Thus, if this trend stays, the price increase is forecasted up to the 105.00 level, and after this target is reached, the bulls may push the currency pair up to maximum, the 105.50 level, as it was observed in October. Though, some specialists believe that this is not a limit though, as the next target is the level 106.30.