Technical analysis of EUR/USD and GBP/USD on September 18



The euro/dollar pair retested the most important levels of 1.1700-40 (lower limit of the monthly cloud + weekly short-term trend + upper limit of the daily cloud) which resulted in the formation of a daily rebound. After that, the pair returned to the day cross, the levels of which can be assigned today at 1.1827 - 1.1875 - 1.1907. On the other hand, it is possible that next week's closing will not make important changes to the current situation, so uncertainties around the pair's movement and development within the past formed limits will continue.


The euro formed a rebound from the supports of the bigger time frames yesterday. Due to this, the bulls used them in the smaller time frames and now, they have support from all analyzed technical instruments. If the rise continues, the classical pivot points (1.1887-1.1928-1.2002) will be resistances during the day. In turn, the key supports that are currently pulling are located today at 1.1844 (weekly long-term trend) and 1.1813 (central pivot level). If the price consolidates below the mentioned levels, it can affect the current balance of forces on one-hour chart. Nevertheless, it will be likely to discuss the advantages and prospects for the bears only after breaking through the support of 1.1740-00 in the upper time frames.



Yesterday, the bears attempted to obtain dominance, but they gave up by the end of closing and returned to their original positions. As a result, the pair is still in the several significant Ichimoku levels of the bigger time frames (daily cross levels + the upper limit of the daily cloud + the weekly short-term trend) in the level of 1.30. A consolidation above this level will allow bulls to make further plans and hope for a rise to the next pivot points 1.3121 (daily medium-term trend) and 1.32 (historical level + final level of the daily Ichimoku cross). If the players failed to take initiative and break through the levels can inspire again the opponent to new feats. In this case, the pivot point will be the level of 1.27 (weekly and monthly Fibo Kijun + the lower limit of the daily cloud).


Despite yesterday's correction to the weekly long-term trend, the bulls retained their advantage in the smaller time frame. Today, the key supports are located at 1.2944 (central pivot level) and 1.2891 (weekly long-term trend). If we work above these mentioned levels, the bulls will remain dominant. Now, the reference points for the upward movement to continue are R1 (1.3024) - R2 (1.3078) - R3 (1.3158). A consolidation below 1.2944 - 1.2891 will affect the distribution of forces and changes in the current balance. In this case, support levels will be S2 (1.2810) and S3 (1.2756). Here, the main task will be to restore the downward trend, the minimum extremum of which is now located at 1.2762.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)

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