Forex trading plan for September 10

By Elizaveta Belugina

EUR/USD slid to 1.1130. Support is at 1.1125 and 1.1090. Decline below these levels will confirm a temporary top and open the way for a fall to 1.1015/00. Early on Thursday the pair’s dynamics will depend on the market’s risk sentiment as China will release inflation figures. US will publish unemployment claims at 12:30 GMT. Trading is expected to be volatile. The upside for the euro will likely be limited.

GBP/USD met resistance at 1.5400. The bears are trying to pull the pound below the 200-day MA at 1.5353. Britain released a bunch of dismal economic data on Wednesday: manufacturing production contracted in August, while trade deficit widened. On Thursday, traders will be focused on the Bank of England’s meeting and minutes at 11:00 GMT. Markets will be expecting dovish comments from British central bank. Such expectations will be negative for GBP/USD.

USD/JPY is testing resistance in the 121.00 area. The pair rose above September 3 high of 120.70 that is a bullish development. Above 121.00 the next resistance will be at 121.70 and 122.00. Support is at 120.20 and 119.60.

AUD/USD keeps correcting to the upside. Positive comments from RBA Deputy Governor Lowe overshadowed decline in consumer sentiment. Above 0.7070 Aussie may be able to rise to 0.7180/0.7200. Support is at 0.7015 and 0.6980. Traders await Chinese inflation & Australian employment data due at 01:30 GMT on Thursday.

NZD/USD rose above 0.6400. The Reserve Bank of New Zealand is expected to cut the benchmark rate from 3% to 2.75%. Such action of the central bank is already priced in NZD/USD, so for a considerable decline of the pair something really negative should happen. Resistance is at 0.6500 and 0.6580. Support is at 0.6315/00. 

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