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

22/09/2022 Daily Reports

Support Level: 0.9810, 0.9750, 0.9700 Resistance Level: 1.0000, 1.0050, 1.0220

EUR/USD

  • The EUR/USD collapsed to fresh multi-year lows as the US Federal Reserve hiked rates by 75 bps, and anticipated ongoing increases to the Federal fund’s rates (FFR) will be appropriate. The pair oscillates around the 0.9840 area, due to increased volatility, bearish in the daily chart.
  • Policymakers reiterated the Fed’s commitment to return inflation to its 2% objective and would assess incoming data, including readings on public health, labor market conditions, inflation pressures, and inflation expectations.
  • Regarding the Summary of Economic Projections, FOMC members estimate the Federal funds rate (FFR) at 4.4% by the end of 2022, according to the median, while growth in the US for the same period is estimated to finish at 0.2%.
  • The EUR/USD pair is trading near the 0.9840, 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 1.0000, break above this level will extend the advance to 1.0200.
  • Techinical readings in the daily chart support the bearish stances. The RSI indicators hovering below the midlines and stabilized around 37, shows bearish strength. The Momentum indicator stabilized below the midline, indicating downward potentials. On downside, the immediate support is 0.9810 and below this level will open the gate to 0.9700.
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    Support Level: 1.1230, 1.11500, 1.1000 Resistance Level: 1.14000, 1.1480, 1.1550

    GBP/USD

    • The GBP/USD sank and refreshed 37-year lows, sliding below the 1.1300 figure, hitting a 2022 YTD low at 1.1236 after the US Federal Reserve hiked rates by 75 bps in the September meeting. The pair recovered modestly and ended Wednesday around 1.1275, down for the day and still bearish in the daily chart.
    • According to its mandate, the US Federal Reserve decided to hike rates to the 3-3.25% range on Wednesday, bringing inflation towards its 2% target. In the monetary policy statement, the FOMC reiterated that it’s strongly committed to reaching the Fed’s goal and mentioned that further rate hikes are needed.
    • Aside from this, the Summary of Economic Projections (SEP) policymakers expects the Federal funds rate to increase to 4.4% by the year’s end, as reported by the median. Meanwhile, as reported by the PCE, inflation is estimated to reach 5.4%, while the core PCE figure, which is the benchmark for Fed members, is estimated to end at 4.5%. The unemployment rate is calculated to uptick to 3.8%.
    • 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 1.1400 with a break above it exposing to 1.1550.
    • Techinical readings in the daily chart support the bearish stances. RSI indicator stabilized around 28, while the Momentum indicator stabilized below the midline, suggesting downward potentials. On downside, the immediate support is 1.1230, unable to defend this level will resume the decline to 1.11500.