The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Market updates on September 27
Key events ahead:
US core durable goods orders – 15:30 MT (12:30 GMT)
US personal spending – 15:30 MT (12:30 GMT)
Speech by the FOMC member Quarles – 15:30 MT (12:30 GMT)
- At the moment of writing, EUR/USD has been trading near the resistance at 1.0921. If bulls manage to break this level or the anticipated releases for the USD disappoint the market, the next resistance level will be situated at 1.0937. After that, the possibility of reaching the 1.0964 level will increase. From the downside, the fall towards the 1.0890 level seems likely if the USD strengthens. The next key support will lie at 1.0854.
- GBP/USD slid lower on the comment by the BOE member Saunders. He said that if the deal is not reached, the next move by the Bank of England may be a cut. The pair has tested the support zone at 1.2272-1.2281, where the 200-period SMA is moving. If the pair overcomes these levels, the next support will be placed at 1.2233. If the pair reverses, bulls will need to break the 1.2297 level to confirm their strength. The next resistance will lie at 1.2373. RSI is moving within the oversold zone.
- Gold moved lower on the improved market sentiment. The price of the yellow metal has tested the support at $1,496. Further supports in bears' focus will lie at $1,490 and $1,486. In case of risk-off sentiment, the reversal towards the $1,507 level will be possible. The next resistance will be placed at $1,512.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.