FX.co ★ Technical analysis recommendations of EUR/USD and GBP/USD on September 14

EUR/USD

Yesterday's testing of support for the weekly short-term trend ended with the formation of a daily rebound. At the same time, the pair returned to the accumulation and attraction area of daily levels of 1.1815-22-40. The breakdown of these levels will return the support of the daily short-term trend to the bulls and will lead to consolidation in the daily cloud of Ichimoku. Here, the next upward pivot points will be 1.1894 (weekly Fibo Kijun) and 1.1965 (weekly medium-term trend + upper border of the daily cloud). Meanwhile, the weekly short-term trend (1.1787) and the daily Fibo Kijun (1.1758) still act as the nearest important support levels.

There was growth in the smaller time frames to the key level – the weekly long-term trend (1.1823), which joins forces with the resistance of the classic pivot levels (1.1828). The breakdown of this level and consolidation above can change the balance of power on the hourly chart again. After that, the next task of the bulls will be to form a new maximum extremum by updating the high of 1.1851. Since the current area includes the influence of daily levels (1.1815-22-40), it is possible that the pair will stay here, consolidating within these limits.

Among the support levels today, we can note the levels of 1.1799 - 1.1781 - 1.1752 - 1.1734 (classic pivot levels). In turn, the resistance levels are set at 1.1846 - 1.1875 (classic pivot levels).

GBP/USD

The last two daily candlesticks had opposite values, as a result, we are waiting for whose forces will win when breaking through the attraction zone led by 1.3830 (weekly Fibo Kijun) - 1.3848 (monthly Tenkan). It is now important for the bulls to go as far as possible and consolidate the achieved result. The next upward pivot points are located at 1.3910 (the upper limit of the daily cloud + the weekly medium-term trend) - 1.3958 (the upper limit of the monthly cloud) - 1.3989 (the final limit of the weekly dead cross of Ichimoku).

Under the current conditions, the task of gaining a reliable advantage by the bears is complicated by the fact that there are other supports other than the support levels of 1.3830-48. For example, we have the levels of 1.3809 (daily short-term trend) - 1.3777 (daily and weekly Fibo Kijuns) - 1.3746 (daily Tenkan), so a reliable result in the current situation is unlikely to be achieved quickly.

The bulls in the smaller time frames managed to keep the situation from changing priorities due to the support of the weekly long-term trend, so the advantages are still on their side. At the moment, the resistance R2 (1.3882) is being tested. Further, the level of the classic pivot level R3 (1.3914) can be noted. Today's key levels retain the role of support and are located in the area of 1.3814-28 (central pivot level + weekly long-term trend). Their loss could change the current balance of power at the same time frame. If so, the support of the classic pivot levels set at 1.3806 - 1.3774 - 1.3752 can be considered.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.