Vikram Murarka
Kshitij Consultancy Services
Many important data releases are due this week that could keep the currencies volatile; the most important being the central bank policy meetings from the FED, BOE and BoJ on 18th, 19th, and 20th of September respectively. Among the other data releases, we have the US IIP, EU CPI, and Japan CPI that would be important to watch. The Dollar Index could test 100.5 before rising to 102 later. Only a break below 100.5 will bring in 99.5 into the picture. Euro can trade within 1.1125-1.10/1.0950 region for now. USDJPY and EURJPY continue to fall and could test 139-138.40 and 154 respectively before a possible halt. Aussie and Pound are in a short corrective rise but could be bearish while below 0.68/6850 and 1.32. In the medium term, a fall to 0.65/64 (Aussie) and 1.30/29 (Pound) looks likely. USDCNY could extend its fall to 7.05/02 on a break below 7.08, if seen. Resistance at 7.12 seems to be holding well for now. EURINR has risen past 93 but needs to sustain to rise towards 93.50/94 else can fall back towards 92.40-92.00. USDINR can continue to trade between 83.80 and 84.00, both being immediate support and resistance levels.
The US Treasury yields remain lower. The view remains bearish and there is room for the yields to fall more from here. The German yields remain stable after the bounce on Thursday. Resistances ahead can cap the upside and keep the broader downtrend intact. The Indian 10Yr GoI continues to fall in line with our expectation. The downtrend is intact. and the yield can fall more.
Dow Jones and DAX continues to rise and can extend the rise to 41700-42000 and 19000. Nifty has dipped slightly but chances of seeing a rise to 25700-25800 will remain intact while above 25000. Nikkei and Shanghai are closed today.
Brent and WTI have declined and might trade sideways for a while if they fails to break above the resistance $74-75 and $70-71 respectively. Gold has key resistance overhead which can halt the current rally and lead
Visit KSHITIJ official site to download the full analysis
The above views are based on the latest available information. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. While the views are proffered with the best of intentions, neither the author, nor the firm are liable for any losses that may occur as a result of any action based on the above. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.
Recommended Content
Editors’ Picks
AUD/USD faces potential extra gains near term
Further weakness in the US Dollar allowed AUD/USD to rapidly forget Friday’s pullback and resume the uptrend well north of 0.6700 the figure amidst quite an auspicious start to the new trading week.
EUR/USD now retargets the 1.1150 region
EUR/USD managed to regain upside impulse and break above the 1.1100 barrier to print new multi-day peaks on the back of increasing downward pressure in the Greenback ahead of the key FOMC meeting.
Gold consolidates gains near fresh all-time highs
Gold trades in a narrow range above $2,580 after touching a new record-high near $2,590 earlier in the day. The benchmark 10-year US Treasury bond yield holds above 3.6% ahead of the Fed meeting and makes it difficult for XAU/USD to find direction.
Ripple joins hands with Hedera and Aptos Labs to launch MiCA Crypto Alliance
Ripple (XRP) made a key announcement alongside other founding members of a crypto alliance. The DLT Science Foundation is behind the effort, Ripple partnered with Hedera and Aptos Labs.
Five Fundamentals for the week: Fed overtowers pivotal week for Gold, stocks and the US Dollar Premium
The Fed's first rate cut stands out as economic uncertainty mounts. US Retail Sales and Jobless Claims are of high interest. Rate decisions by central banks in the UK and Japan are also pivotal.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.