Forex (weekly) report: 20th September 2020

By: Admin
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Insignia Consultants

                                                                                   New Delhi

Sunday, September 20, 2020

TIME7:46 PM IST                       

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FOREX WEEKLY REPORT

  1. Quarter end position squaring and rebuilding has started.
  2. Euro will crash against the US dollar there is slightest indication of a second wave of covid in Eurozone.
  3. Brexit news will impact cable.
  4. Yen will be impacted by measures by New Japanese prime minister.

Central banks meetings are over. Trader will start taking positions for (a) US September nonfarm payrolls on 2nd October and (b) US presidential elections in early November.

Euro can pare most of this years gains against the US dollar if Eurozone faces second wave of covid. Cable (UK pound) can see a double knock down if covid cases see a sharp increase and brexit issue continue to be in deadlock.

There will be very sharp two way price moves. Watch the Japanese yen. Look for signs of trend reversal in the Japanese Yen.

Forex Weekly Technical Levels for 20th September 2020

 

usd/inr

usd/idr

euro/usd

gbp/usd

usd/jpy

CMP

73.5400

14735.00

1.1818

1.2986

104.57

S5

71.7775

14266.00

1.1565

1.2597

101.88

S4

72.2025

14500.00

1.1631

1.2692

102.80

S3

72.8675

14585.90

1.1676

1.2766

103.73

S2

73.1250

14610.10

1.1703

1.2828

103.96

S1

73.3175

14671.20

1.1775

1.2891

104.11

 

 

 

 

 

 

R1

73.6925

14798.40

1.1879

1.3040

104.96

R2

76.9675

14869.50

1.1915

1.3116

105.31

R3

74.2125

14977.00

1.1939

1.3192

105.92

R4

74.4225

15050.75

1.2004

1.3277

106.34

R5

74.8800

15214.90

1.2115

1.3464

107.26

Breakout Level

74.0650

14969.50

1.2922

1.3034

105.92

Breakdown Level

73.1225

14621.60

1.1755

1.2824

103.94

 

CMP= Current price market price

ABOVE TECHNICALS ARE ONLY FOR REFERENCE

US DOLLAR – INDIAN RUPEE (USD/INR) Current price 73.5400

  • There is a big support between 73.0125 and 73.1400. Rupee can rise to 74.0650 and 74.2750 as long as it trades over 73.025-73.1400 zone.
  • Overall trend is down as long as usd/inr trades below 74.0650.
  • Month demand and half yearly demand will be the key.

US DOLLAR – INDINESIAN RUPIAH (USD/IDR) Current price 14735.00

  • Hundred day MA around 14621 is the key support. There will be big crash only if rupiah trades below 14621 to 14499.00 and 14355.40.
  • Rupiah needs to trade over 14860-14960 zone for the rest of the month to rise further to 15214 and more.

EURO-US DOLLAR (EURO/USD) Current price 1.1818

  • Euro/usd needs to trade over 1.1740 for the rest of the month to rise to 1.2004 and 1.2115.
  • Bearish trend or crash of sell off will be there if euro/usd trades below 1.1740 to .1646 and 1.1524.
  • Euro/usd will try to rise and break past 1.1922. If 1.1922 is not breached then a big sell off to 1.1565 and 1.1465 will be there.

UK POUND -US DOLLAR (GBP/USD) Current price 1.2917

  • Cable needs to trade over 1.2801 this week to rise to 1.3150 and 1.3437.
  • Sell off will be there only if cable trades below 1.12801 to 1.2715.
  • There is big long term support between 1.2675-1.2725 zone. As long as cable trades over 1.2675-1.2725 zone, it will rise to 1.3437 and 1.3637 (in October).
  • Long term technical breakdown will be there only if cable trades below 1.2675.

US DOLLAR – JAPANESE YEN (USD/JPY) Current price 104.57

  • Long term support is between 103.74-104.14 zone. As long as yen trades over 103.74-104.14 zone it will rise to 106.10 and 107.74 (in October)
  • The next wave of sell off in yen will be there only if yen trades below 103.74.

The second wave of covid and its impact is not unknown. Political developments like Japanese new prime minister, brexit issues, US presidential elections etc will have a far biggest impact on major currencies than economic factors. Trade war with China will also impact the US dollar Index. Boom or bust time for most currencies.

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees  have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani

Disclosure: Insignia consultants or it employees do not have any trading positions on the trading strategies mentioned above. Our clients do have positions on the trading strategies mentioned in the above report.

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NOTES TO THE ABOVE REPORT

ALL VIEWS ARE INTRADAY UNLESS OTHERWISE SPECIFIED

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PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

PLEASE USE APPROPRIATE STOP LOSSES ON INTRA DAY TRADES TO LIMIT LOSSES.

THE TIME GIVEN IN THE REPORT IS THE TIME OF COMPLETION OF REPORT

ALL PRICES/QUOTES IN THIS REPORT ARE IN US DOLLAR UNLESS OTHERWISE SPECIFED.

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