The daily reports for important events that affects the forex, stocks and commodities markets.

21/09/2022 Daily Reports

Resistance Level: 1.0050, 1.0200, 1.0280 Support Level: 0.9875, 0.9800, 0.9750

EUR/USD

  • The EUR/USD remains under pressure after hitting a weekly high at around 1.0050 earlier, bolstered by higher than expected German PPI. However, as the North American session began, the exchange rate tumbled below parity and its opening price, ended Tuesday around 0.9975, bearish in the daily chart.
  • The US Dollar Index, a gauge of the buck’s value vs. a basket of currencies, is rising 0.42%, up at 110.052, while the US 10-year bond yield edges up eight bps, at 3.573%, a headwind for the EUR/USD.
  • Elsewhere, data revealed in the Euro area, mainly Germany, showed that prices paid by producers climbed in August by 7.9% MoM, vs. 2.4% estimates, and two and a half percent higher than July’s reading. On an annual basis, the reading edged up by 45.8% above 37% estimates. Sources quoted by Reuters said that “surging costs are see.
  • The EUR/USD pair is trading near the 0.9975, down for the day with the neutral to bearish stance in daily chart. The pair stabilized below 20 and 50 SMA, indicates bearish strength in short term. Meanwhile, 20 SMA started turning flat but continued developing below longer ones, suggests bears not exhausted yet. On upside, the immediate resistance is 1.0050, break above this level will extend the advance to 1.0280.
  • Techinical readings in the daily chart support the bearish stances. The RSI indicators hovering below the midlines and stabilized around 44, shows bearish strength. The Momentum indicator stabilized near the midline, indicating directionless potentials. On downside, the immediate support is 0.9875 and below this level will open the gate to 0.9800.
 
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    Resistance Level: 1.14800, 1.1550, 1.1640 Support Level: 1.1350, 1.1300, 1.1200

    GBP/USD

    • The British pound remains under pressure amidst a week where a lot of central banks would feature their monetary policy meetings for September. The pair ended Tuesday around 1.1385, down for the day and still bearish in the daily chart.
    • Global equities portray a dismal sentiment. Traders expect an aggressive Federal Reserve on Wednesday, and uncertainty about the Summary of Economic Projections (SEP) update keeps investors on their toes.
    • In the meantime, the US Dollar Index, a headwind for the GBP/USD, rises more than 0.30%, up at 109.985, underpinned by higher US Treasury bond yields. The US 10-year benchmark note rate sits at 3.596%, skyrocketing ten bps, reaching its highest level since April 2011.
    • The GBP/USD offers bearish stance in daily chart, it maintains the downward slope and now is stabilized below all main SMAs, indicating bearish strength. Meanwhile, the 20 SMA continued accelerating south and developing far below longer ones, suggesting bears not exhausted yet. On upside, The immediate resistance is 1.1480 with a break above it exposing to 1.1640.
    • Techinical readings in the daily chart support the bearish stances. RSI indicator stabilized around 32, while the Momentum indicator stabilized below the midline, suggesting downward potentials. On downside, the immediate support is 1.1350, unable to defend this level will resume the decline to 1.1300.