Forex Analysis 18 Sept

EURUSD Daily Outlook

This morning on the 4hr chart we can see that the EUR was rejected at the resistance zone level which has not been breached since 28 August. We continue to trade sideways and a push to support is very likely and even possibly trendline support.

On the 1 chart, we can see another rectangle pattern forming and a break an close outside this pattern could signal if the bulls or bears are coming back into action.

GBPCHF Daily Outlook

After last weeks beautiful triple bottom price rallied to the resistance zone and created a nice flag formation.

125.993 will be the short target

127.350 will be the long target

EURJPY Daily Outlook

The pair rallied early in the European session after President Draghi made a statement regarding the economic data from Europe, however, it failed to break the resistance zone and traded back in the rectangle pattern. There is 1hr trendline support which price is currently trading off. If that trendline support is broken we should see price move back to the 130.120 level.

USDCAD Daily Outlook

The dollar strengthened against the Loonie on the first trading day of the week making a higher high in its current trend. It failed to break the resistance zone and is currently trading on support of the flag it broke out of yesterday. Today we have CAD manufacturing data out and the US crude oil weekly outlook which if oil reserves keep producing higher it could push USDCAD lower to the 129.790 level.

The Bank of England

The Bank of England is the central bank of the United Kingdom. It was established in 1694 and was privately owned in the beginning, the Bank was nationalized in 1946 so now is completely owned by the UK government. BOE’s main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable.

The European Central Bank (ECB)

The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council, and the General Council. Mario Draghi, a member of the Executive Board, is also the President of this organism.

The Federal Reserve Bank (Fed)

The Federal Reserve System (Fed) which is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System’s structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

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