Weekly Technical Analysis For September 20th to 24th, 2021

Pay Attention To The Fed Rate Decision This Week

EUR/USD: Last week, the US dollar held three-week highs against a basket of major currencies after a raft of strong U.S. economic data rekindled expectations for earlier policy tightening by the U.S. Federal Reserve. U.S. retail sales unexpectedly increased in August, rising 0.7% from the previous month despite expectations of a 0.8% fall, while a business sentiment survey by the Philadelphia Fed also showed a big improvement.

Moreover, Inflation in the US, as measured by the Consumer Price Index (CPI), edged lower to 5.3% on a yearly basis in August from 5.4% in July, the data published by the US Bureau of Labor Statistics revealed on Tuesday.

Looking ahead, watch out for on the Fed Monetary Policy Meeting this week. The Federal Reserve is expected to leave its benchmark interest rate unchanged. The meeting will give markets new guidance about monetary policy outlook. 

We will closely watch for any details of the US central bank's plans to start paring back its $120 billion a month emergency stimulus program.

Besides the Fed rate decision, this week's calendar also features U.S. data on housing starts and building permits numbers are due out on Tuesday, figures on existing home sales on Wednesday, Thursday’s report on initial jobless claims and new home sales is due for release on Friday.

The EURUSD pair moved down below the 1.1744 main resistance level. As long as the EURUSD pair stays below 1.1744, on a four-hourly basis, we will follow 1.1658 as the support level. On the upside, if the price rises above 1.1744, the next resistance level will be at 1.1819.

Support: 1.1658 - 1.1658 - 1.1589

Resistance : 1.1744 - 1.1819 - 1.1867

GBP/USD: In the upcoming week, keep you eye on the BoE Rate Decision. The Bank of England is unlikely to change policy at its Thursday meeting but may indicate whether it still views inflation as transitory.

Pay attention to the 1.3784 daily resistance level in the GBPUSD pair. As long as the pair stays below 1.3784, on a daily basis, we will follow 1.3688 and 1.3599 as support levels. Otherwise, if the price rises above 1.3784, the next resistance level will be at 1.3883

Support: 1.3688 - 1.3599 - 1.3517

Resistance: 1.3784 - 1.3883 - 1.4005

USD/JPY: The Bank of Japan, which meets on Tuesday and Wednesday, is widely expected to keep policy steady but may warn about growing risks to exports from supply disruptions.

The USDJPY pair moved up above the 109.72 main support level. As long as the pair stays above 109.72 on a daily basis, we will watch the resistance level at 110.36. On the other hand,  if the price drops below 109.72, the next support level will be placed at 109.39.

Support: 109.72 - 109.39 - 109.09

Resistance: 110.36 - 110.93 - 111.52

GOLD:  The GOLD price closed last week above the 1745 main support level. As long as the price stays above 1745, on a four-hourly basis, we will see the daily resistance levels at 1763 and 1785. On the downside, if the price breaks down below 1745, the next support level will be at 1736.

Support: 1745 - 1736 - 1722

Resistance: 1763 - 1785 - 1805

19 Sep 21 (Sun)

06:13 pm


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