Strong US data shifts the FX near term trends in major and USD pairs as well. USD buying witness across the board on Wednesday session.

Market participants focus on August NFP data due on Friday.

Barclays: August non-farm payrolls to rise 200k and the unemployment rate to decline to 4.2%.

Nomura: we expect another strong employment report next Friday with a forecasted 205k increase in nonfarm payroll employment, which would mark the third consecutive month of +200k growth.

FX insights: 

  • USDCHF and USDCAD gave a breakout through the inverse H&S pattern (H1) in yesterday’s London session.
  • USDCAD erased the twelve-week descending trend line.
  • USDMXN printed the first higher low on the daily chart.
  • USDTRY sits above interesting trend lines.
  • USDZAR trading near parallel support levels.
  • After the North Korea missile saga in early Monday Asia session, EURUSD printed a near term top at 1.2070 in Europe session and changed the direction. At lower time frames it has given a bearish H&S pattern. We advised a sell trade on our Tuesday’s article.
  • GBPUSD rejected thrice at 50DMA and trading between interesting trend lines on the four-hour chart. A foot print above 1.2980 opens to 1.3030 and 1.3080. Safe buying available only above 1.3030. The daily oscillator remains bullish. Earlier we have advised a bullish trade at 1.2800 with a target at 1.2940/1.2960. The cable made a high at 1.2978.
  • GBPAUD and GBPCAD currently trading on a verge of a breakout through the descending trend line on the daily chart. GBPAUD already gave a range breakout of 190 pips.
  • GBPNZD spotted with an inverse H&S pattern on the H4 chart. The pattern target aiming at 1.8040, 1.8100 and 1.8140, On the daily chart a clear breakout visible through a symmetrical triangle. A strong close above 1.8000 major trend reversal is highly likely. In this case 1.8150 and 1.8350 possible. 
  • The Aussie dollar printed a lower top on the daily chart and closed below 20DMA. A move below 0.7830-0.7800 to confirm the retracement to 0.7750/0.7740. Any rally needs to sell until close above 0.8000.
  • The Kiwi dollar consolidating with a bearish theme at 50.0% fib (0.6817-0.7557 rally). Sell on the rally favors the trend.
  • CHFJPY again rejected at the parallel resistance and 50DMA. On the daily chart, the price action appears a bearish H&S pattern. Until close above 115.50 sell the rally favors the trend. Near term, support finds at 112.50 and 112.30. A move below this opens to 110 and 108.50 levels.
  • In the commodity space, Brent oil fell below the eleven-week ascending trend line. WTI settles below all the moving average on the daily chart but Brent remains above 50&100 DMA@50.0.
  • Natural gas has been trading in a large symmetrical triangle spotted on the daily chart. A near term trend reversal expected if settle above 3.1120 aims at 3.2000 and 3.3500.
  • Silver failed at the 2-year descending trend line. Potential resistance seems between 17.50 and 17.75.
  • Gold rejected at 80.0% (1375-1122 fall). If propel above 1315 likely to re-visit 1326 again.

Chart for medium term: GBPNZD

 

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