September 10th 2021: Technical Market Insight

September 10th 2021: Technical Market Insight, FP Markets

Charts: Trading View

Brief Economic Review:

  • The European Central Bank left interest rates unchanged, though did state that over the coming quarter it would ‘moderately’ cut back on PEPP purchases. The question is what is moderate?
  • Weekly initial unemployment claims out of the US slipped to 310,000 versus economist forecasts of around 335,000.


(Unchanged from previous analysis) Technical observations out of the monthly chart reveals large-scale support at $1.1816-1.1299 welcomed buyers in recent trade, with prime support resting at $1.1473-1.1583 which happens to share chart space with a 100% Fib projection at $1.1613. This, alongside a clear uptrend since early 2020, echoes a technically bullish picture, placing the retracement slide on the daily timeframe from late July tops at $1.1909ish in question. North of $1.1909, buy-stops could fuel moves to prime resistance at $1.2115-1.1990, a place active sellers may reside.

Meanwhile, H4 demand at $1.1783-1.1810 remains active, yet appears brittle. Prime support inhabits $1.1764-1.1776, with sell-stops beneath the aforementioned demand potentially helping to fuel willing $1.1764-1.1776 bids.

The H1 chart has the currency pair within reach of a Fibonacci cluster around $1.1844—a base with enough energy to possibly draw short-term bearish interest. The chart also centres focus on $1.18. Although $1.18 joins hands with a 61.8% Fib retracement and a 1.618% Fib projection at $1.1797, Quasimodo resistance-turned support at $1.1775 (unites with prime H4 support at $1.1764-1.1776) is positioned to welcome any $1.18 whipsaw.

September 10th 2021: Technical Market Insight, FP Markets


(Unchanged from previous analysis) According to the weekly timeframe, August dipped a toe in prime support at $0.6968-0.7242—an area inspiring a two-week bullish phase. Chart studies point to $0.7849-0.7599 as a potential upside objective. In terms of trend, the unit has been higher since the beginning of 2020. Interestingly, the daily timeframe shows a prime support/target made an entrance at $0.7286-0.7355 this week, following a dip from prime resistance at $0.7506-0.7474.

The H4 continues to languish south of the decision point from $0.7395-0.7410. Stacked demand is close by between $0.7282 and $0.7343, and prime support rests at $0.7236-0.7266. H1 carved out a fresh short-term peak Thursday, touching $0.7395. While current price encourages a bullish setting, the possibility of a whipsaw lower through demand at $0.7331-0.7350 to prime support at $0.7310-0.7322 (joined by a decision point at $0.7307-0.7324) is an alternative bullish scenario worth noting.

A $0.7331-0.7350 whipsaw to $0.7310-0.7322 dovetails not only with daily prime support at $0.7286-0.7355, but also direction out of monthly prime support at $0.6968-0.7242.

September 10th 2021: Technical Market Insight, FP Markets


Since mid-July, ¥108.40-109.41 demand has been in focus on the weekly timeframe. Though the lacklustre bullish vibe from the area is clearly visible on the daily scale by way of a range between prime resistance at ¥110.86-110.27 and support coming in at ¥108.96-109.34. Until a decisive break outside either of these areas materialises, we’re dealing with a rangebound market on the daily timeframe.

¥110.82-110.39 supply on the H4 chart has proven stubborn. Quasimodo support at ¥109.48 calls for attention, should sellers remain in the driver’s seat. With this on board, sellers welcoming the H1 decision point at ¥109.84-109.76 and targeting support from ¥109.59 could be in the offing. Note that below the latter, H4 Quasimodo support is seen at ¥109.48.

September 10th 2021: Technical Market Insight, FP Markets


The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

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Source - database | Page ID - 22161

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