Sunday, 1 September 2019

GBP/USD, EUR/USD Technical Analysis

General overview of GBP/USD

Prime minister Boris Johnson intends to suspend Parliament from September 12 until Oct. 14. The opposition party said it could trigger an emergency debate in parliament next week to try to prevent Prime Minister taking Britain out of the EU without a withdrawal deal. This is a negative environment for GBP.

Daily Chart Technical Analysis




The major trend is still bearish. GBP/USD is trading below the moving averages. They are behaving as  stiff resistance for the pound to advance. On the upside, $1.23 will be the first hurdle for the bulls if it is broken it may trigger a rise to $1.2345 and to 50-day EMA.

However, $1.2100 will be the first support as it's the Psychological level. A break below it may carry the sterling to $1.2020.


General overview of EUR/USD

EUR plummeted against USD as German inflation slowed in August and unemployment rose. This shows that the largest economy in EU is slowing. Additionally,  traders priced in a rate cut by the European Central Bank as its policy meeting on September 12.

Daily Chart Technical Analysis




 The main trend is bearish. If the fall continue the first support will be at $ 1.0960, thereafter  $1.0900 level.

On the upside, EUR/USD will face resistance from $1.1060 level. If it breaks out, it may go to $1.1100 the Psychological level. It's very important level as the 20-day EMA is located there too.


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