#WaveAnalysis

#USDJPY reversed from support zone
Likely to rise to 105.20

https://fxpro.news/market-snapshots/usdjpy-wave-analysis-22-september-2020-20200922/

The melting of the dollar reversed by top US economic officials

Mnuchin and Powell noted during the Congressional hearing that the US economy is recovering better than expected, but still needs support.

Separately, Evans, a voting member of the FOMC next year, made relatively hawkish comments. He noted that the Fed could start raising rates before the inflation averages 2%.

The Fed’s mix of hopes for new stimulus and a less relaxed approach than expected has returned investor interest in US assets. Moreover, it happened at a critical moment. The dollar index emerged from the depths, where it consolidated from the end of July.

https://fxpro.news/daily-forex-outlook/the-melting-of-the-dollar-reversed-by-top-us-economic-officials-20200923/

#WaveAnalysis

#PepsiCo reversed from support zone
Likely to rise to 135.00

https://fxpro.news/market-snapshots/pepsico-wave-analysis-22-september-2020-20200922/

The increase in the number of new COVID-19 cases in Europe has hurt business activity indices. One after another, preliminary PMI estimates from European countries fell short of expectations. The service sector of the euro area has returned to decline. Although manufacturing has mostly exceeded expectations, the PMI Composite index has been dragged down by Services.

Strong Manufacturing performance is good news for Germany and provided short-term support for the euro, which now has a chance to counteract the dollar's growth impulse.

In general, investors and traders of the euro should note the speed in which the Composite index returned dangerously close to the level separating decline from growth.

This is yet another reminder of how fragile the recovery in the eurozone is. The same indices for the USA published a few minutes ago managed to exceed expectations by remaining firmly in the growth area. This data could extend the momentum of the euro's decline against the dollar in the coming days.

#WaveAnalysis

#AUDUSD broke support area

Likely to fall to 0.7000

https://fxpro.news/market-snapshots/audusd-wave-analysis-23-september-2020-20200923/

A harder dollar push

The US dollar returned to growth yesterday afternoon, but this time stock indices failed to accompany it.

Further strengthening of the dollar is a working scenario for nearest days and weeks, unlikely for months.

Further growth from current levels opens a direct path for USDX to 96.3, where it reversed upward in December 2019 and resisted pressure in June.

The performance of the euro pair shows a high potential for further decline, with the area of 1.1500 promising to be a next major target.

Complicated negotiations on Brexit and the increased correlation of the pound with risk demand are forcing us to seriously consider the return of GBPUSD to 1.2000.

https://fxpro.news/daily-forex-outlook/a-harder-dollar-push-20200924/

US weekly unemployment claims once again fell short of expectations. The number of initial claims rose from 866K to 870K with expectations of 845K. The number of continued claims fell from 12.75M to 12.58M, worse than the expected 12.3M.

Continued claims numbers are falling, albeit at a much slower pace than expected, while the stabilization of initial applications for benefits at 880K over the last four weeks is a worrying sign.

The current level is four times higher than before the pandemic hit and without further decline, it will signal a possible halt in the economic recovery.

Strictly speaking, this is more negative news for markets, but the big question now is, isn’t the market tired of the sell-off?

#WaveAnalysis

#EURUSD broke support zone

Likely to fall to 1.1560

https://fxpro.news/market-snapshots/eurusd-wave-analysis-24-september-2020-20200924/

New support hopes eased market fears and halted USD uptick

Discussions around a new $2.2 trillion relief package in the US kept markets afloat on Thursday and are helping to build positive momentum at Asian bourses on Friday morning.

The steady fall in key US indices, as well as the increase of the dollar earlier this month, reversed the trends that prevailed in markets from March to the end of August. On the tech analysis side, we recently received a signal that the dollar is likely to continue its growth and that the stock market is expected to decline.

However, a renewed hope for support packages from the US government could prevail over any technical picture or alter its interpretation.

https://fxpro.news/daily-forex-outlook/new-support-hopes-eased-market-fears-and-halted-usd-uptick-20200925/

#WaveAnalysis

#USDCHF rising inside impulse wave

Likely to rise to 0.9350

https://fxpro.news/market-snapshots/usdchf-wave-analysis-25-september-2020-20200925/

#WaveAnalysis
#AUDNZD broke support zone

Likely to fall to 1.0670

https://fxpro.news/market-snapshots/audnzd-wave-analysis-25-september-2020-20200925/

Shares bounce, but currencies are wary

The markets on Monday morning are supported by hopes for fiscal support in the US and progress in Brexit negotiations. Interestingly, the markets have managed to put aside the fear of the risks of an economic slowdown amid a near-record number of infections at the end of last week.

In the short term, this was a turning point for the US indices and spread positive waves to other indices. Futures on the S&P 500 are now trading 3.3% above Thursday’s low. The Dow Jones 30 retreated 3% from local dips, while the Nasdaq100 retreated 5%.

At the same time, the currency market has not yet seen an equally sharp reversal in demand for yielding currencies. The dollar index just suspended its upward correction at the end of the day on Friday, remaining close to its highs of 2 months, but shied away from resuming decline.

https://fxpro.news/daily-forex-outlook/shares-bounce-but-currencies-are-wary-20200928/

#WaveAnalysis
#AUDCAD reversed from support zone

Likely to rise to 0.9500

https://fxpro.news/market-snapshots/audcad-wave-analysis-28-september-2020-20200928/

#WaveAnalysis

#Gold approached support level 1865.00

Likely to re-test 1900.00

https://fxpro.news/market-snapshots/gold-wave-analysis-28-september-2020-20200928/

Will the Trump-Biden debate stop the market rally?

Hopes for fiscal stimulus on day four are fueling the market growth. S&P500 has added 4.7% over this time, bringing back about 40% of its slump since early September. On the technical side, the situation seems like a return to growth after a 23.6% retreat from the March-September rally.

Futures on the S&P 500 are now testing a 50-day average. Successful consolidation above this can clear the path to historical highs. But possibly the bears have not yet played their final card.

There are several obstacles ahead on the way up. Today there will be the first US presidential debate between candidates.

https://fxpro.news/daily-forex-outlook/will-the-trump-biden-debate-stop-the-market-rally-20200929/

#WaveAnalysis

#Silver reversed from support area

Likely to test 25.00

https://fxpro.news/market-snapshots/silver-wave-analysis-29-september-2020-20200929/

#WaveAnalysis

#AUDUSD reversed from round support level 0.7000

• Likely to rise to 0.7200

https://fxpro.news/market-snapshots/audusd-wave-analysis-29-september-2020-20200929/

#WaveAnalysis

#NZDUSD reversed from key support level 0.6500

• Likely to rise to 0.6625

https://fxpro.news/market-snapshots/nzdusd-wave-analysis-29-september-2020-20200929/

Gold and silver forms a base for renewed growth

The technical picture suggests that a decline from $2075 to $1850 was a short term corrective rollback, which has significantly lost strength near the 38.2% Fibonacci retracement from March-August. Silver, however, failed to overcome its important round level of $30 at its peak in August and was dragged down by the correction of its big brother.

As early as the end of last week, the bears’ pressure was exhausted, and we saw renewed purchases. Both metals are growing along with positive stock indices in anticipation of a new US fiscal support package.

This includes tax breaks for companies, cheques for $1200 for most Americans and the reinstatement of federal unemployment benefit supplements. Earlier this year we saw all these measures supporting demand for stock exchange instruments and pulling gold and silver up.

https://fxpro.news/daily-forex-outlook/gold-and-silver-forms-a-base-for-renewed-growth-20200930/