Below you will find technical analysis of the top forex pairs, commodities, stocks and indices to watch in today’s trading.
EUR/USD
The EUR/USD pair recorded a significant drop on Wednesday against a strengthening U.S. Dollar. The pair started the day around 1.3600 finished around 1.3500, while during the Asian session it fell even lower to reach the 1.3490 level. The U.S. Dollar gained some profits firstly due to a positive mood over the announcement of the next Fed Chairperson Janet Yellen,and secondly as the FOMC Meeting minutes were released, showing to investors that the decision not to scale back the stimulus was reached with an overwhelming majority. After explanations given by some of the FOMC members as to why the Fed should wait with scaling back the stimulus, the vote was 9-1. However, most of the members agreed on starting the tapering later in 2013 and finish in mid 2014. However, outgoing Fed head Bernanke, repeated that there is no given schedule and the tapering will start when the labor market will be stabilized. Today at 8.00AM (GMT) the ECB Monthly Bulletin will be released, which might be connected with some negative movement to the EUR/USD pair. At 4.20PM (GMT) ECB President Draghi is scheduled to speak at the Economic Club of New York. The pair remains bearish with support at 1.3485 and resistance at 1.3605.
Trend: Slightly Down
GBP/USD
The GBP/USD pair dropped on Wednesday due to the disappointing UK economic data and a stronger U.S. Dollar. The U.K Manufacturing Production showed a 1.2% decrease instead of the predicted 0.3% increase. This disappointing data plus, the positive mood on the U.S. market over the new Fed chairperson Yellen, pushed the pair down to the 1.5920 area. Today at 11.00AM (GMT) the U.K Asset Purchase Facility, Official Bank Rate and MPC Rate Statement data will be released. These releases are usually connected with high volatility even if they stay unchanged. Last time they were announced, onSeptember 5, we saw pulling about 40 pips up. The trend is now slightly bullish with support at 1.5910 and resistance at 1.6090.
Trend: Up - Down
USD/JPY
The USD/JPY pair increased on Wednesday but was recorded mainly during the Asian session, while during the European and American sessions it just kept its level around 97.3. Today, again during the Asian session, the USD/JPY climbed up to 97.80 despite the fact that the Japanese Core Machinery Orders and Tertiary Industry Activity data came out above estimation. Today, BoJ Government Kuroda is speaking at 4.00PM (GMT) at the Bretton Woods Committee 2013 International Council Meeting, in Washington DC but most probably what he has to say won’t have any impact on the Yen. The trend remains slightly bullish with support at 96.75 and resistance at 97.85.
Trend: Slightly Up
GOLD
On Wednesday the price of gold reacted to the announcement of the decision that Janet Yellet will be the next Fed chairperson. It should be pointed out that Janet Yellen is well-known for her dovish statements; therefore we could assume that she might keep the monetary stimulus for longer than her predecessor would. In the FOMC report traders saw good news over the tapering of monetary stimulus and this is the reason why the price of gold dropped again and finished the day around $1,302.5/ounce. We should also not forget that yesterday it was the 9th day since the partial shutdown of the U.S. Government partially and that there are only 8 more days remaining to sign an agreement about raising the debt ceiling. The price of gold can be said to no longer be reacting to this crisis and even the physical demand stays weak as traders are anticipating another drop. The trend is slightly bearish with support at 1,294 and resistance at 1,330.
Trend: Down - Up
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