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Forex Pair Analysis For Day Trading

Forex Pair Talking Points:

1. GBP/USD forex pair dumped in Asia with renewal of Brexit deal

2. The Euro was able to hold onto its gains from the first round of the French election

3. USD/JPY rebounds sharply in tandem with DXY, eyes on 112.00

4. AUD/USD trying to recover

Forex Pair Analysis

EUR/USD:

After checking out the region of 2017 tops close to 1.0950 on Friday, EUR/USD has commenced this week slightly at the defensive and gyrating around the 1.0890 region.

Scarce volatility and flat market activity because of Labor Day holiday are prompting the pair to increase its sideline theme close to the 1.0900 neighborhood following the Asian session on Monday.

EUR/USD Forex pair Chart

Technical Levels to watch

At the moment, the pair is losing 0.07% at 1.0888 facing the immediate support at 1.0850 (low Apr.27) seconded by 1.0836 (200-day sma) and finally 1.0805 (23.6% Fibo of the April rally). On the flip side, a break above 1.0949 (high Apr.28) would target 1.0951 (2017 high Apr.25/26) en route to 1.1000 (psychological handle).

GBP/USD:

The GBP/USD forex pair stalled its 4-day bullish streak and was given heavily bought-off in Asia, as markets reacted negatively to the European-Brexit Summit outcome, following reviews that the EU took simply four minutes to agree a hardline stance on Brexit.

In response to the headlines, the UK PM Theresa may also renew threat to stroll faraway from EU without a deal, which swept the floor off the pound.

Furthermore, the US dollar staged a comeback against its main rivals after Friday’s poor US GDP and consumer sentiment facts. The USD index bounced-back to 99 handle, extending recovery from multi-month lows reached previous Friday at 98.58.

Within the day beforehand, the spot may also stay below strain, extending its corrective mode from seven-month tops, because the USD is predicted to stay in demand for ahead of the US treasury secretary Mnuchin’s speech and US information flow.

GBP/USD Forex Pair Chart

Technical Levels to watch            

A break above 1.2948 (daily highs) could lift the pair above 1.2970 (7-month tops), beyond which a test of 1.3000 (psychological levels) is imminent. Conversely, a break below 1.2884 (Apr 28 low), leading to a subsequent break below 1.2863 (10-DMA) is likely to drag the pair towards testing its next support near 1.2803/1.2800 (Apr 26 low/ round figure).

USD/JPY:

The US dollar caught a fresh bid-wave throughout the board, prompting USD/JPY to level a solid rebound from a dip to 111.20 tiers amid holiday-thinned markets. Most important Asian and European markets are closed today in observance of their respective national holiday.

The present day leg better inside the spot can be specifically attributed to resurgent USD demand towards its main competitors, after the headlines hit the wires that the US congressional negotiators have reached a deal to fund authorities and forestall a monetary shutdown.

USD/JPY Forex pair Chart

Technical Levels to watch            

A break above 111.78 (4-week tops) would expose 112 (round figure) and 112.61 (100-DMA). On the other hand, a breach of support at 111.37 (5-DMA) could yield a test of 111 (key support) and 110.61/49 (10 & 200-DMA).

AUD/USD:

AUD/USD forex pair is currently trading at 0.7490 with a high of 0.7491 and a low of 0.7462.

AUD/USD Forex pair Chart

The Australian dollar extended its decline vs the greenback last week but stablised int he last few sessions below the 075 handle having lost around 1.2% on the week and dropping to the lowest level since mid-January as analysts at Brown Brothers Harriman noted. The price has started to correct with potentially tough resistance at the top of the consolidative channel.

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