Daily FX Analysis – GBP/USD drops, EUR/USD navigates, NZD/USD strengthens, USD/CHF soars.
Introduction
GBP/USD faces pressure, dropping towards 1.2650 after disappointing UK Retail Sales data. The pair grapples with a resurgent US Dollar and cautious market sentiment, awaiting crucial US data and Federal Reserve speeches. Meanwhile, EUR/USD remains stable below 1.0900, monitoring ECB President Lagarde’s speech. NZD/USD gains strength above 0.6100, while USD/CHF rises to nearly 0.8680 on SNB Chairman’s concerns about the appreciating Swiss Franc. Market dynamics continue to evolve as traders brace for upcoming economic indicators and central bank communications.
Markets In Focus Today – GBP/USD
GBP/USD Drops Toward 1.2650 After UK Retail Sales Data.
GBP/USD is dropping toward 1.2650, under intense selling pressure after the UK Retail Sales dropped more than expected in December. The pair is also feeling the heat from a pause in the US Dollar decline, as sentiment remains tepid ahead of top-tier US data, Fedspeak. GBP/USD reversed its direction after dipping below 1.2700 and closed in positive territory above 1.2750 on Thursday. The positive shift seen in risk mood supports the pair on Friday as markets await Producer Price Index (PPI) data from the US. Inflation figures provided a boost to the US Dollar (USD) with the initial reaction but they seemingly failed to persuade markets that the Federal Reserve (Fed) could refrain from lowering the policy rate in March.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.27 | Negative Crossover | Bearish
-
MA 20 : 1.27 | Negative Crossover | Bearish
-
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
-
MA 10 : 1.27 | Negative Crossover | Bearish
-
MA 20 : 1.27 | Negative Crossover | Bearish
-
MA 50 : 1.26 | Positive Crossover | Bullish
RSI (Relative Strength Index) : 49.84 | Neutral Zone | Neutral
Stochastic Oscillator : 47.09 | Neutral Zone | Neutral
Resistance And Support Levels :
-
R1 : 1.28 R2 : 1.29
-
S1 : 1.26 S2 : 1.25
Overall Sentiment : Neutral Market Direction : Buy
Trade Suggestion : Limit Buy : 1.2655 | Take Profit : 1.2754 | Stop Loss : 1.2595
EUR/USD
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Daily FX Analysis – Red Sea, Stable EUR, AUD Retreats, USD/JPY Eyes BoJ.
Introduction
The GBP/USD consolidates above 1.2700 amid modest USD weakness, driven by a positive risk-on environment. Despite a rebound in the pair, rising tensions in the Red Sea pose potential challenges. Meanwhile, EUR/USD stabilizes near 1.0900, influenced by an improving risk mood. The Australian Dollar retraces gains as the market awaits potential policy rate reduction by the Australian Central Bank. Japanese Yen struggles against the USD, with investors anticipating dovish actions from the Bank of Japan amid geopolitical risks and China’s economic concerns.
Markets In Focus Today – GBP/USD
GBP/USD Consolidates Above 1.2700 On Modest USD Weakness.
GBP/USD kicks off the new week on a positive note, trading above 1.2700 early Monday. The rebound of the major pair is bolstered by the risk-on environment. However, the rising tension in the Red Sea might boost safe-haven asset demand and cap the upside of the pair. GBP/USD staged a rebound in the second half of the previous week and erased a large portion of its weekly losses. The pair’s near-term technical outlook is yet to point to a build-up of bullish momentum as it holds steady at around 1.2700 in the European morning on Monday. Nevertheless, investors remain indecisive about the timing of the Federal Reserve (Fed) policy pivot ahead of this week’s key growth and inflation data from the US.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.27 | Negative Crossover | Bearish
-
MA 20 : 1.27 | Positive Crossover | Bullish
-
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
-
MA 10 : 1.27 | Negative Crossover | Bearish
-
MA 20 : 1.27 | Negative Crossover | Bearish
-
MA 50 : 1.26 | Positive Crossover | Bullish
RSI (Relative Strength Index) : 51.69 | Buy Zone | Bullish
Stochastic Oscillator : 55.73 | Buy Zone | Positive
Resistance And Support Levels :
-
R1 : 1.28 R2 : 1.29
-
S1 : 1.26 S2 : 1.25
Overall Sentiment : Bullish Market Direction : Buy
Trade Suggestion : Limit Buy : 1.2685 | Take Profit : 1.2792 | Stop Loss : 1.2619
EUR/USD
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Daily FX Analysis – EUR/USD Struggles, GBP/USD Rebounds, USD/CHF Falters, NZD/USD Surges.
Introduction
EUR/USD hovers below 1.0900 following Germany’s PMI data revealing continued economic contraction, hindering Euro’s recovery. Meanwhile, GBP/USD sees improvement near 1.2700 after a sharp Tuesday reversal. USD/CHF, ending its winning streak, trades below 0.8700 amid subdued US Dollar and Fed rate cut speculations. NZD/USD extends gains to 0.6110, benefiting from a weaker USD and in anticipation of US PMI data, following New Zealand’s CPI release. Investors await the ECB’s monetary policy and US GDP data before making significant moves.
Markets In Focus Today – EUR/USD
EUR/USD Stays Below 1.0900 After The German PMI Data.
EUR/USD continues fluctuating in a narrow channel below 1.0900 on Wednesday. The data from Germany showed that the private sector’s economic activity continued to contract in early January, not allowing the Euro to gather recovery momentum. EUR/USD turned south and touched its lowest level since mid-December at 1.0820 during the American trading hours on Tuesday. Although the pair managed to recover above 1.0850 early Wednesday, the technical outlook is yet to point to a build-up of bullish momentum. Nevertheless, investors are likely to refrain from taking large positions ahead of the European Central Bank’s (ECB) monetary policy announcements on Thursday.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.09 | Negative Crossover | Bearish
-
MA 20 : 1.09 | Negative Crossover | Bearish
-
MA 50 : 1.09 | Negative Crossover | Bearish
Simple :
-
MA 10 : 1.09 | Negative Crossover | Bearish
-
MA 20 : 1.09 | Negative Crossover | Bearish
-
MA 50 : 1.09 | Negative Crossover | Bearish
RSI (Relative Strength Index): 43.09 | Neutral Zone | Neutral
Stochastic Oscillator : 22.06 | Sell Zone | Negative
Resistance And Support Levels :
-
R1 : 1.11 R2 : 1.12
-
S1 : 1.08 S2 : 1.07
Overall Sentiment: Bearish Market Direction: Sell
Trade Suggestion: Stop Sell: 1.0851 | Take Profit: 1.0749 | Stop Loss: 1.0918
GBP/USD
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Daily FX Analysis – EUR/USD, GBP/USD, AUD/USD, USD/JPY Dynamics.
Introduction
EUR/USD hovers near 1.0880, tracing the 38.2% Fibonacci level in the early European session, driven by a US Dollar retracement. Wednesday’s bullish momentum to 1.0930 retreated later as the USD rebounded. Investors await the ECB’s policy announcements. GBP/USD experiences a downturn after reaching a two-week high, currently trading around 1.2710. AUD/USD faces a second day of losses at 0.6570 amid an enhanced US Dollar, reacting to positive S&P PMI data. USD/JPY retreats from a one-week peak following the Bank of Japan’s hawkish stance.
Markets In Focus Today – EUR/USD
EUR/USD Moves Lower To Near 1.0880 Followed By The 38.2% Fibonacci Level.
EUR/USD traded lower near 1.0880 during the early European session on Thursday as the US Dollar makes efforts to retrace its recent losses. The 14-day Relative Strength Index (RSI) for the pair is positioned below the 50 mark, indicating a bearish momentum in the market. EUR/USD gathered bullish momentum and advanced to the 1.0930 area on Wednesday. With the US Dollar (USD) staging a rebound later in the day, the pair erased a large portion of its daily gains and returned below 1.0900. Investors await the European Central Bank’s (ECB) policy announcements and high-tier data releases from the US.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.09 | Negative Crossover | Bearish
-
MA 20 : 1.09 | Negative Crossover | Bearish
-
MA 50 : 1.09 | Negative Crossover | Bearish
Simple :
-
MA 10 : 1.09 | Negative Crossover | Bearish
-
MA 20 : 1.09 | Negative Crossover | Bearish
-
MA 50 : 1.09 | Negative Crossover | Bearish
RSI (Relative Strength Index): 46.69 | Buy Zone | Bullish
Stochastic Oscillator : 30.64 | Sell Zone | Neutral
Resistance And Support Levels :
-
R1 : 1.11 R2 : 1.12
-
S1 : 1.08 S2 : 1.07
Overall Sentiment: Bearish Market Direction: Sell
Trade Suggestion: Limit Sell: 1.0913 | Take Profit: 1.0816 | Stop Loss: 1.0978
GBP/USD
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Weekly FX Analysis – GBP/USD Swings, EUR/USD Challenges, AUD/USD Rebounds, USD/JPY Gains.
Introduction
GBP/USD retreated below 1.2750, reversing gains after soft US December core PCE inflation data. Despite the setback, the pair eyes marginal weekly gains. Meanwhile, EUR/USD stabilized near 1.0850 post-US inflation data, maintaining positive territory. AUD/USD recovered to 0.6600 on improved market sentiment ahead of US core PCE data, while USD/JPY aimed for the psychological resistance at 148.00, supported by Tokyo CPI slowing below the BoJ’s 2.0% target.
Markets In Focus Today – GBP/USD
GBP/USD Retreats Below 1.2750, And Looks To Post Small Weekly Gains.
GBP/USD lost its traction and retreated below 1.2730 after rising above 1.2750 on soft US December core PCE inflation data in the early American session on Friday. Every week, GBP/USD remains on track to post marginal gains. GBP/USD lost its traction and dropped below 1.2700 in the early trading hours of the European session on Friday. Although the near-term technical outlook is yet to highlight a build-up of bearish momentum, buyers could remain discouraged unless the pair manages to reclaim 1.2700. Upbeat macroeconomic data releases from the US provided a boost to the US Dollar (USD) during the American session on Thursday.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.27 | Negative Crossover | Bearish
-
MA 20 : 1.27 | Negative Crossover | Bearish
-
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
-
MA 10 : 1.27 | Positive Crossover | Bullish
-
MA 20 : 1.27 | Negative Crossover | Bearish
-
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 51.13 | Buy Zone | Bullish
Stochastic Oscillator : 59.44 | Buy Zone | Neutral
Resistance And Support Levels :
-
R1 : 1.28 R2 : 1.29
-
S1 : 1.26 S2 : 1.25
Overall Sentiment: Bullish Market Direction**: Buy**
Trade Suggestion: Limit Buy: 1.2622 | Take Profit : 1.2799 | Stop Loss : 1.2524
EUR/USD
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Daily FX Analysis – GBP falls, AUD holds, JPY rises, USD/CHF adjusts.
Introduction
“The GBP/USD faces a decline below 1.2600 following soft UK inflation data, amplifying the pressure on Pound Sterling. Meanwhile, robust US economic indicators suggest a prolonged period of higher interest rates, driving the pair to 1.2598. The Australian Dollar also grapples with US Dollar strength amid positive CPI numbers, while the Japanese Yen gains support from a shift in global risk sentiment and verbal intervention. USD/CHF, having reached an 11-week high, corrects slightly as investors anticipate continued US Dollar strength amid inflation concerns.”
Markets In Focus Today – GBP/USD
GBP/USD Slumps Below 1.2600 After Soft UK Inflation Data.
GBP/USD lost its traction and declined below 1.2600 in the European session on Wednesday. The data from the UK showed that the Consumer Price Index (CPI) declined by 0.6% every month in January and weighed heavily on Pound Sterling. The GBP/USD plunges below 1.2600 as strong economic data from the United States (US) suggests the Federal Reserve (Fed) would keep interest rates higher for longer. At the time of writing, the pair trades at 1.2598 after hitting a daily high of 1.2683. GBP/USD slid on hot US CPI data, traders await UK inflation figures.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.2618 | Negative Crossover | Bearish
-
MA 20 : 1.2643 | Negative Crossover | Bearish
-
MA 50 : 1.2634 | Negative Crossover | Bearish
Simple :
-
MA 10 : 1.2616 | Negative Crossover | Bearish
-
MA 20 : 1.2659 | Negative Crossover | Bearish
-
MA 50 : 1.2673 | Negative Crossover | Bearish
RSI (Relative Strength Index): 41.0237 | Neutral Zone | Neutral
Stochastic Oscillator : 30.7950 | Sell Zone | Negative
Resistance And Support Levels :
-
R1 : 1.2763 R2 : 1.2807
-
S1 : 1.2618 S2 : 1.2574
Overall Sentiment: Bearish Market Direction: Sell
Trade Suggestion: Stop Sell: 1.2571 | Take Profit: 1.2494 | Stop Loss: 1.2629
AUD/USD
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Daily FX Analysis – Euro, Kiwi up, Pound down, Loonie recovers.
Introduction
EUR/USD remains near 1.0725, closely watching ECB President Lagarde’s speech in the wake of mixed Fedspeak and the upcoming US Retail Sales report. The pair shows signs of balance recovery after a modest US dollar retracement led to gains. In other markets, NZD/USD sees slight gains, while GBP/USD faces pressure following UK GDP data. USD/CAD attempts to rebound, influenced by a subdued US dollar and the potential impact of declining WTI prices. The broader focus includes key economic indicators like the Philly Fed Manufacturing Index and weekly Initial Jobless Claims.
Markets In Focus Today – EUR/USD
EUR/USD Sticks To Lows Near 1.0725, Lagarde Eyed.
EUR/USD is holding lower ground while eyeing the 1.0700 mark in European trading on Thursday. The US Dollar struggles amid mixed Fedspeak, as traders await the US Retail Sales report for fresh policy hints. Ahead of that, ECB Lagarde’s speech is eagerly awaited. The modest retracement in the US dollar (USD) triggered a decent bounce in risk-oriented assets on Wednesday, encouraging EUR/USD to regain some balance and leave the area of yearly lows in the sub-1.0700 zone. On the ECB’s side, Vice President L. de Guindos remarked that although progress is being made, caution is warranted to avoid premature conclusions.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.0762 | Negative Crossover | Bearish
-
MA 20 : 1.0799 | Negative Crossover | Bearish
-
MA 50 : 1.0839 | Negative Crossover | Bearish
Simple :
-
MA 10 : 1.0755 | Negative Crossover | Bearish
-
MA 20 : 1.0806 | Negative Crossover | Bearish
-
MA 50 : 1.0889 | Negative Crossover | Bearish
RSI (Relative Strength Index): 37.4419 | Sell Zone | Bearish
Stochastic Oscillator : 12.4185 | Sell Zone | Positive
Resistance And Support Levels :
-
R1 : 1.0982 R2 : 1.1041
-
S1 : 1.0790 S2 : 1.0731
Overall Sentiment: Bearish Market Direction: Sell
Trade Suggestion: Limit Sell: 1.0750 | Take Profit: 1.0667 | Stop Loss: 1.0804
NZD/USD
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Weekly FX Analysis – Stay updated on Forex amid economic uncertainty.
Introduction
GBP/USD rebounded from session lows, hovering below 1.2600 after a dip to 1.2550 post-stronger-than-expected US producer inflation data. The pair faced resistance amid cautious market sentiment. Meanwhile, EUR/USD held above 1.0750 following US data, signaling consolidation. AUD/USD aimed for positive territory, buoyed by Wall Street’s surge, while USD/JPY consolidated below 150.50, influenced by firmer USD and BoJ Ueda’s speech impact. Japanese Yen strength persisted amid doubts about BoJ’s early policy shift due to the unexpected Q4 GDP contraction.
Markets In Focus Today – GBP/USD
GBP/USD Rebounds From Session Lows, And Trades Below 1.2600.
GBP/USD erased much of its daily losses after dropping to 1.2550 following the stronger-than-forecast US producer inflation data. However, with markets turning cautious in the American session, the pair struggles to reclaim 1.2600. GBP/USD benefited from the renewed US Dollar (USD) weakness and snapped a three-day losing streak on Thursday. The pair, however, lost its recovery momentum after testing 1.2600 and edged lower in the early European session on Friday. The 10-year US Treasury bond yield continued to correct lower following the disappointing Retail Sales data from the US on Thursday and weighed on the USD. Meanwhile, Bank of England’s Monetary Policy Committee (MPC) member Megan Greene reiterated on Thursday that the monetary policy will need to remain restrictive for some time, further supporting GBP/USD.
Technical Overview With Chart :
Moving Averages :
Exponential :
-
MA 10 : 1.2611 | Negative Crossover | Bearish
-
MA 20 : 1.2634 | Negative Crossover | Bearish
-
MA 50 : 1.2631 | Negative Crossover | Bearish
Simple :
-
MA 10 : 1.2598 | Positive Crossover | Bullish
-
MA 20 : 1.2648 | Negative Crossover | Bearish
-
MA 50 : 1.2675 | Negative Crossover | Bearish
RSI (Relative Strength Index): 44.8213 | Neutral Zone | Neutral
Stochastic Oscillator : 27.2727 | Sell Zone | Positive
Resistance And Support Levels :
-
R1 : 1.2763 R2 : 1.2807
-
S1 : 1.2618 S2 : 1.2574
Overall Sentiment: Neutral Market Direction: Buy
Trade Suggestion: Stop Buy: 1.2620 | Take Profit: 1.2574 | Stop Loss: 1.2531
EUR/USD
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