FX.co ★ Technical analysis for EUR/USD and GBP/USD on September 22

EUR / USD

The euro/dollar pair declined again to the most important support level of 1.1740 (the lower limit of the monthly cloud) and the daily Ichimoku cloud is located just below it. Now, if we exit from the monthly cloud and consolidate in the daily cloud, the bears will strengthen and pave the way for a decline to the next support zone 1.1567 - 1.1521 - 1.1486 (lower limit of the daily cloud + weekly and monthly Fibo Kijun).

On the other hand, another rebound will be formed from the reach support level - 1.1740, which will let the pair to return to the center, which is now being formed by the weekly short-term trend (1.1826) and the daily Ichimoku cross (1.1825 - 1.1871 - 1.1904). Moreover, failure to break through the level of 1.1740 can significantly weaken the bears and increase the chances that the winner of the current confrontation and uncertainty will be the opponent who will strive to rise to the upper limit of the monthly cloud (1.2167) after restoring the upward trend (1.2011).

The main advantage in the smaller time frames remains on the bears' side, despite the corrective upward movement. Today, the downward reference points within the day are now the support of the classic pivot levels (1.1711 - 1.1651 - 1.1571), while the key resistances for the development of the current correction are located at 1.1791 (central pivot level) and 1.1828 (weekly long-term trend). A reliable consolidation above will change the current balance of forces and will serve as the beginning of the formation of a new rebound from the supports reached at the upper time frames (1.1740).

GBP / USD

The pound/dollar pair reached support at 1.2777 (weekly medium-term trend), by doing its best to continue decline and separated it from the recovery of the daily downward trend (1.2762). Further, we have the level of 1.2711, where the monthly Fibo Kijun strengthens the bottom of the daily cloud. A consolidation below in the bearish zone relative to the daily cloud will form a bearish target on the breakout of the cloud. If the bears fail to overcome the encountered support and the situation returns to an upward correction, then the nearest resistances are united in the zone today 1.2898-1.2943-1.2963 (daily Tenkan + weekly Fibo Kijun + upper limit of the daily cloud).

The advantage is on the bears' side in the smaller time frames, who are almost recovering the downward trend after a small correction. The pivot points for the continuation of the decline within the day are the support of the classic pivot levels (1.2736 - 1.2659 - 1.2544). Meanwhile, key resistances are joining forces today around 1.2851 (central pivot level) and 1.2913 (weekly long-term trend). Breaking through above which will change the balance of forces acting on the hourly TF.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (Classical), Moving Average (120)