Due to the FED meeting, which begins today, investors will take a cautious position. Calm trading on Monday was interrupted when bulls attacked the euro after ECB head Mario Draghi's public comments. In his speech, Draghi noted the possibility of a "relatively sharp" acceleration of core inflation, which would allow the regulator to complete the liquidation of the quantitative easing program, according to plans announced in advance, before the end of this year. As a result, the EUR/USD managed to reach 1.1800 again, however, by the end of the day, it returned to the morning values area, which led to the formation of a daily doji indicating the equilibrium situation in anticipation of the results of the meeting of the Federal Reserve. Today is not rich in published statistics. It is worth paying attention to the publication consumer confidence index in the US for September. Market expectations are at 132.2. However, today and tomorrow's focus will be on the Fed. Its results, especially the comments of the representatives of the regulator, will determine euro's direction.
Mario Draghi's statement about the acceleration of the base inflation led the EUR/USD quotes to the level of 1.1800. However, subsequently, the prices finished trading in the area of morning values in the area of 1.1740-1.1745. The growth of quotations led to the formation of another signal about the probability of corrective movement. On the chart, yellow indicates a divergence between local maximums of prices and the corresponding values of the indicators RSI and MACD. Based on this, during the coming trading sessions, prices are predicted to fall to the 200-periodic MA, passing through the 1.1640 mark.
Today, in expectation of the results from the Fed meeting, quotes will fluctuate in the range of 1.1730-1.1785.
The support zone is in the area of 1.1625-1.1640.
The resistance is located in the range 1.1780-1.1800.
The main events this week, which will have a significant impact on the dynamics of the GBP/USD pair, are the results of the Fed meeting and the Conservative Party conference, both scheduled for this weekend. If the first of these events will set the dynamics of the foreign exchange markets in the remaining trading sessions of the current week, the heated debate on Brexit between the party members and Theresa May can make a surprise until her resignation. Today, the General Assembly of the United Nations scheduled a meeting between Therese May and US President Donald Trump, which may discuss issues of trade cooperation in the absence of an agreement on the withdrawal of Britain from the EU. The lack of a compromise on Brexit at the informal summit of the heads of European states in Salzburg has already led to a rapid decline in the quotes of the pair by 200 points. In previous reviews, the technical picture of the pair was pointed out, indicating the probability of corrective price movement. This week, it is predicted a gradual decline in quotations to the upper boundary of the medium-term channel, passing through the level of 1.2900.
Support zones are successively located in areas 1.3015-1.3040 (200-periodic MA on the time frame of H4) and 1.2900-1.2910 (green ovals).
The resistance zone is still present in the range 1.3190-1.3205 (red oval).
USD/JPY stabilized slightly below the resistance area around 112.85-112.95. Today, the predominance of lateral dynamics is predicted. Traders will be waiting for the outcome of the Fed meeting. In this case, the technical picture of the pair indicates the probability of corrective movement after the growth of quotations in previous days. The purpose of the reduction is the area of support located near the 112.00 mark.
The support zone is in the area of 112.05-112.25 (green oval).
The resistance zone is located in the area of 112.85-113.05 (red oval).
On Monday, USD/CHF pushed up from the support zone near the 0.9600 mark and reached the end of the day the area of 0.9640-0.9645. The technical picture of the pair indicated the probability of the beginning of a positive price trend. That is more detailed described in yesterday's overview. Today, on the eve of the opening meeting of the Fed the predominance of lateral dynamics is predicted. At the same time, during the remaining trading sessions, the probability of price increase to the resistance zone around 0.9700 is not excluded.
The support zone is in the area of 0.9590-0.9605 (green oval on the chart).
The resistance is located in the range of 0.9695-0.9705 (red oval).
