Forex Market Outlook: 29 September 2022

Updated September 29, 2022

The dollar index (DXY) retraced briefly on Wednesday, dropping nearly 1.86% to 112.57. Market sentiments turned slightly positive as investors expect the Fed to slow down the pace of interest rates hike sooner than expected. All eyes are on the US Gross Domestic Product Data announcement on Thursday, with consensus showing a negative growth rate of –0.6%. A lower-than-expected GDP growth rate may further weaken the dollar.

Bank of England looks to defend the British Pound (GBP) in a new set of bond buying program early Wednesday. The BOE will buy bonds with a maturity of over 20 years and up to 5 billion pounds per auction initially. This came after the yields on UK government bonds rose sharply as investors shunned the fixed income markets following the announcement of the “mini-budget” which includes large unfunded tax cuts. This may lead to a further weakening of the pound in the long run, further worsening the effects of inflation in the UK.

Today’s trade ideas: 29 September 2022

NZDUSDH1: Bearish outlook seen, further downside below 0.59327

Prices haves rebounded to 0.57352 after hitting a fresh 2 year low of 0.5663. General sentiment is still bearish until prices make it above the 0.618 retracement level (0.59327). A near term resistance at 0.58113 must be overcome before we get start to see a switch in sentiment for the kiwi.

Coloured candles represent our projection Source: TradingView.
https://www.tradingview.com/chart/NZDUSD/51rXapG6-NZDUSDH1-Bearish-outlook-seen-further-downside-below-0-59327/

USDCADH1: Bullish outlook seen, bounce from 1.31523

On the H1 timeframe, prices have broken down from the strong bullish rally to 1.38316. A rejection from the 1.3768 level may see further downside to the 1.31523 support level. The general sentiment for the Dollar is bullish, hence a buy at support is more favourable. The target would be the previous high of 1.3768.

Coloured candles represent our projection Source: TradingView. https://www.tradingview.com/chart/USDCAD/zvTmh6IN-USDCADH1-Bullish-outlook-seen-bounce-from-1-31523/

WTIOIL H1: Near term bearish outlook seen, mid term bullish

Prices have been moving along the descending channel and is set to approach the upper bounds of the channel. Shorts may be possible at the 81.31 – 82.53 support turned resistance level. However, if prices to close cleanly above the 84.572 level, we may see a bullish move for wtioil.

Coloured candles represent our projection Source: TradingView.
https://www.tradingview.com/chart/WTI/DgzhAr7x-WTIOIL-H1-Near-term-bearish-outlook-seen-mid-term-bullish/

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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