The market sentiment remains good on the last trading day. The stock market is climbing up, and Tokyo Nikkei 225 attacks 27-year highs. It uses USD/JPY, which was the highest since December 2017. It is better to have risk currencies, except NZD. A lot of hype comes from ordering the position at the end of the quarter.
The rhythm gives the stock market, which draws a green session following the strong Thursdays in Europe and Wall Street. The Japanese Nikkei225 is the star growing 1.4% over 24,100. In China, Shanghai Composite gains 0.9%. The Tokyo Stock Exchange is growing in sync with USD/JPY, which at the end of the day was 113.64 and was at the highest since December 2017.
In the case of other currencies, the night went on in a calm atmosphere with low volatility, although a better climate for risky assets was noticeable. The strongest are CAD, SEK, and AUD, although it loses NZD. Traders should not pay too much attention to the changes taking into account the reshuffling related to the end of the quarter.
On Friday, the 28th of September, the event calendar is busy with important data releases. During to London session, Germany will post Retail Sales, Unemployment Rate and Import Price Index data, the UK will post Current Account, GDP and Business Investment data, Eurozone will present Consumer Price Index data, Spain, France and Italy will all post GCP data. During the US session, Canada will post GDP and Raw Materials Price Index data and the US will present PCE Core, Personal Spending, Personal Income, Chicago Purchasing Managers Index and UoM Consumer Sentiment data.
EUR/USD analysis for 28/09/2018:
EUR / USD went down to 1.1632 under the pressure of information from Italy, where the government approved the budget plan for the next year with a deficit of 2.4% GDP. This is more than the previous discussion (of 1.6-1.9%) and sounds alarming for the country with the second largest debt in the Eurozone.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has reached the technical support at the level of 1.1655 - 1.1643 as expected and now is moving slightly up as it tries to bounce. Nevertheless, the fall out of the channel is rateth bearish sign, so all moves up will be regarded as a corrective in nature. The next support is seen quite close to the current levels, at 1.1627 and 1.1627. Please notice, the market conditions are oversold and the momentum is still negative and points to the south, so it support the short-term bearish bias.
