Market Analysis

Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

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September 26, 2019 01:12 am

EUR/USD Daily Analysis: September 26, 2019

After a sharp increase of the Dollar on Wednesday trading, the price slides down and moving close to a significant support level. 

The horizontal support level is at 1.0930 kept the pair higher for two times this month and every test will result in a rally towards the area of 1.10. If the pair breaks down, it could reach a new 28-month low. 

News on Trump’s impeachment did not keep the dollar from rising as if the markets aren’t affected at all. Meanwhile, the latest US GDP data will be published today and the forecast expects a 2% growth in the second quarter. A speech from the ECB president Mario Draghi could induce some volatility when considering the monetary policy of the economy. 

The euro major pair will likely have a breakout to a new multi-year low but the question now is whether the decline will continue. So far, the pair trades range-bound most of the month and begin to be a bit oversold on short-term timeframes. 

For this year, most of the time the price has been fluctuating between declining and dropping into a range. Hence, I would be a bit cautious to see if this will be a full-blow breakdown. 

If the price rises in the next session, sellers will try to defend the level of 1.0966, which has been the lowest daily close in the first half of the month. 

The pair trades close to the level of 1.0930 during the North American trading session today should also be noted. If the pair stays higher, we can expect a slight bounce of the pair. 

On the contrary, the price will likely have stops accumulated below the level of 1.0930 as traders look for a double bottom potential. Therefore, the price can have dipped below and may induce stops. The resistance of 1.0966 keeps recovery rallies the upcoming trading session.


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