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Daily Technical Insights 15 September 2022



EURUSD managed to stage a rebound throughout Wednesday’s trading. The Euro took advantage of the weaker Dollar and has found breathing around parity. Fundamentals for the Euro, however, remain unchanged. The EU continues to suffer from a weak economy and as winter nears, energy prices are beginning to add to the weight of the economy. Furthermore, as Russia continues to cut off natural gas supplies via Nordstream 1, European citizens are facing one of the most challenging winters. The weaker Dollar was caused by a surprise drop in the U.S. PPI, which declined 0.1% in August. While the weaker PPI indicates a possible slowdown in aggregate demand, the macroeconomics environment for the U.S. remains unchanged and prices are still rising in core sectors, thus a weaker PPI would not deter the hawkish Fed.

On the technical side, EURUSD has successfully defended our previous estimated support level of around 0.99. Short-term resistance for the pair stands at slightly above parity. RSI for the pair sits at 44.86, as of writing. On the four-hour chart, EURUSD currently trades above its 50-day SMA, but below its 100 and 200-day SMA.

Resistance:  0.9902, 1.0011, 1.0055

Support: 0.9902, 0.985


Cable advanced throughout Wednesday’s trading. The U.K. CPI data indicated a decline to 9.9%, compared to 10.1% in July; however, the core CPI increased to 6.3%, compared to 6.2% in July. Similar to the U.S. CPI released on Tuesday, the British CPI continues to show that prices are not declining and the most important sectors continue to exhibit sticky and upwardly moving prices. The weaker U.S. PPI allowed the British Pound to find bidding and recover above the 1.15 price region. The BoE’s next interest rate decision is now forecasted to come in at 75 basis points. On the economic docket, the U.S. is scheduled to release its August retail sales figure during today’s American trading session.

On the technical side, GBPUSD has found support at slightly above our previously estimated support level of 1.1463. The short-term resistance level stands at around the 1.1714 price region. RSI for the pair sits at 48.07, as of writing. On the four-hour chart, GBPUSD currently trades above its 50-day SMA, but below its 100 and 200-day SMA.

Resistance: 1.1561, 1.1854

Support: 1.1463


After tumbling more than 1.2% throughout Tuesday’s trading, Gold continued to lose ground on Wednesday. The non-yielding yellow metal has failed to attract bidding as market participants seek for yields from other asset classes. Despite the broadly weakened U.S. Greenback, Gold has continued to be disfavored. The CME FedWatch tool has now indicated a 36% probability of a full percentage interest rate hike by the Fed; however, the Fed would need compelling evidence from the economy to go ahead with such a large hike. The downside for the yellow metal remains uncapped as global central banks are geared for further tightening.

On the technical side, XAUUSD has found some bidding slightly above our previously estimated support level f $1695 per ounce. We remain confident that this level should hold for the near future. Resistance for Gold stands at $1724 per ounce. RSI for the pair sits at 39.64, as of writing. On the four-hour chart, XAUUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1740, 1800

Support: 1712, 1695