Forex Market Outlook: 06 September 2022

Updated September 6, 2022

DXY rallied above 110 on Monday, reaching a level not seen in 20 years following the deepening energy crisis seen in Europe, which increased the risks of a regional recession and buoyed demand for the safe haven Dollar. Elsewhere, hours after the G7 leaders decided to set a price cap on Russian oil, Russia abruptly shut down a crucial gas pipeline to Europe, blaming an oil leak in a turbine. On the data front, US unemployment rate rose to 3.7% while wage growth was slower than anticipated. However, with inflation standing at decades high and Fed’s commitment to bring inflation back to the 2% target, Dollar remains supported with prospects of higher interest rates, with markets anticipating a 75bps rate hike this month. Other notable publications include the RBA, BOC and ECB monetary policy meeting this week.

Trade ideas that played out last Thursday: 1 September 2022

EURUSD M30: Bearish outlook seen, further downside below 1.0040

On the M30 time frame, prices are facing bearish pressure from the resistance zone at 1.0040, in line with the 38.2% Fibonacci retracement and graphical support-turned-resistance zone. We could see further downside below this zone to the support zone at 0.9980. Stochastic is showing bearish divergence as well where we could see further downside in prices.

Before:

Coloured candles represent our projection

Source: TradingView. https://www.tradingview.com/chart/EURUSD/8AYOEqwq-EURUSD-M30-Bearish-outlook-seen-further-downside-below-1-0040/

After:

AUDUSD M30: Bearish outlook seen, further downside below 0.68500

On the M30 time frame, prices are facing bearish pressure from the resistance zone at 0.68500, in line with the Fibonacci confluence levels where a pullback to this zone could present an opportunity to play the drop to our next support target at 0.6780. Prices are holding below the Ichimoku cloud as well supporting the bearish bias.

Before:

Coloured candles represent our projection

Source: TradingView. https://www.tradingview.com/chart/AUDUSD/QhVRbeNb-AUDUSD-M30-Bearish-outlook-seen-further-downside-below-1-0040/

After:

Today’s trade ideas: 6 September 2022

USDCHF M30: Bearish outlook seen, further downside below 0.9820

On the M30 time frame, prices are facing bearish pressure from the resistance zone at 0.9820, in line with the 38.2% Fibonacci retracement. We could see further downside below this zone to the support zone at 0.9680. A break below the downside confirmation at 0.9750 might provide the bearish acceleration to the support target at 0.9680. Ichimoku cloud is showing signs of bearish pressure as well with prices holding below the Ichimoku cloud.

Coloured candles represent our projection

Source: TradingView. https://www.tradingview.com/chart/USDCHF/Ghs5fJRH-USDCHF-M30-Bearish-outlook-seen-further-downside-below-0-9820/

NZDUSD M30: Bearish outlook seen, further downside below 0.6150

On the M30 time frame, prices are approaching resistance at 0.6150, in line with the Fibonacci confluence levels where a pullback to this zone could present an opportunity to play the drop to our next support target at 0.6080. Stochastic is approaching resistance as well supporting the bearish bias.

Coloured candles represent our projection

Source: TradingView. https://www.tradingview.com/chart/NZDUSD/Q15Ky67g-NZDUSD-M30-Bearish-outlook-seen-further-downside-below-0-6150/

XAUUSD H1: Bullish outlook seen, further upside above 1707.80

On the H1 time frame, prices are approaching the resistance-turned-support zone at 1707.80, in line with the 50% Fibonacci retracement where a throwback to this zone presents an opportunity to play the bounce to the resistance target at 1744.80. Prices are holding above the Ichimoku cloud as well, supporting the bullish bias. Failure to hold above the support zone at 1707.80 could see prices push lower towards the next support zone at 1688.20.

Coloured candles represent our projection

Source: TradingView. https://www.tradingview.com/chart/XAUUSD/rSAwE9wm-XAUUSD-H1-Bullish-outlook-seen-further-upside-above-1707-80/

Past performance is no indication of future performance. This report is provided by Zeta Labs, a specialized Forex Fintech Consultant and Technical Advisor who provides white-label solutions for FX Market Analysis, trading insights and education webinars. The team has a wealth of industry experience, with our analyst being part of the team recognised by The Technical Analyst Awards as Finalist for the Best FX Research for 4 consecutive years (2019, 2020, 2021, 2022). 

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