Forex Market Fundamental And Technical Analysis

[forexnews]

EUR/USD Struggles and GBP/USD Rebounds Amid Central Bank Focus. - 17/12/2024​

KEY HIGHLIGHTS ​

• EUR/USD struggles to gain momentum, focuses on Fed decision.
• GBP/USD rebounds as traders await central bank outcomes.
• NZD/USD steady near 0.5800 amid cautious market sentiment.
• USD/CAD holds near multi-year highs, supported by political uncertainty.

INTRODUCTION​

The currency markets are in focus as major currency pairs react to central bank policies, economic data, and geopolitical developments. Traders are particularly eyeing the Federal Reserve’s upcoming rate decision, which has broader implications for the U.S. Dollar (USD), while developments in Europe, the UK, New Zealand, and Canada add further volatility to the forex market. This article delves into key market movements, technical trends, and trade setups for EUR/USD, GBP/USD, NZD/USD, and USD/CAD.

---

Markets in Focus: EUR/USD Struggles Below 1.0500​

EUR/USD continues to face challenges in gaining momentum, struggling to stay above the critical 1.0500 level. On Monday, the pair showed modest gains but lacked conviction, edging within a narrow range. While European December PMI figures exceeded expectations, the Services PMI remained in contraction, reflecting ongoing economic concerns in Europe.

The market’s primary focus remains on the Federal Reserve’s interest rate decision scheduled for Wednesday. According to the CME FedWatch Tool, markets have priced in a 99.1% probability of a 25-basis-point rate cut. Traders are keenly awaiting the Fed’s updated Summary of Economic Projections (SEP) and its dot plot for further clues on interest rate directions in 2025.

In contrast, U.S. economic data painted a mixed picture. Services PMI surged to multi-year highs, while Manufacturing PMI remained below 50, signaling continued contraction. Retail Sales data, due later today, may have a limited impact as the Fed meeting takes precedence.

EUR/USD Technical Overview:​

• Moving Averages (Exponential):
  • MA 10: 1.0514 – Negative Crossover – Bearish
  • MA 20: 1.0543 – Negative Crossover – Bearish
  • MA 50: 1.0659 – Negative Crossover – Bearish
• RSI: 42.47 – Neutral Zone
• Stochastic Oscillator: 33.26 – Sell Zone
• Resistance and Support Levels:
  • R1: 1.0846 | R2: 1.0988
  • S1: 1.0384 | S2: 1.0242

Overall Sentiment: Bearish
Market Direction: Sell
Trade Suggestion: Limit Sell: 1.0532 | Take Profit: 1.0474 | Stop Loss: 1.0575

---

GBP/USD Rebounds as Traders Eye Key Central Bank Decisions​

Read Full Report Visit - Capital Street FX​

 

[forexnews]

EUR/USD Struggles and GBP/USD Rebounds Amid Central Bank Focus. - 19/12/2024​

INTRODUCTION​

Major currency pairs remain under pressure as the US Dollar strengthens following the Federal Reserve’s hawkish rate cut. Traders now await key economic data, including US GDP and inflation figures, alongside central bank decisions in the UK, Eurozone, and Australia, which continue to shape market sentiment. This article delves into the market movements of EUR/USD, GBP/USD, AUD/USD, and USD/CAD, providing a detailed technical overview and trade suggestions to help investors navigate the evolving forex landscape.

EUR/USD Analysis​

Market Overview​

The EUR/USD pair remains under pressure, trading below the 1.0400 level, weighed down by the Federal Reserve’s hawkish stance on rate cuts. During Thursday’s Asian session, the pair dipped to around 1.0370 as the US Dollar strengthened.

Key Drivers​

• The Federal Reserve implemented a 25 basis point rate cut during its December meeting, reducing the benchmark lending rate to 4.25%-4.50%, the lowest in two years.
• Fed Chair Jerome Powell signaled a cautious approach to further rate reductions due to persistent inflation above the 2% target.
• In the Eurozone, expectations of aggressive ECB rate cuts through June 2025 continue to weigh on the Euro.

Technical Overview

​

• Moving Averages: Negative crossovers for MA 10, MA 20, and MA 50 indicate a bearish trend.
• Indicators: RSI at 36.45 (sell zone); Stochastic Oscillator at 13.81 (neutral).
• Resistance Levels: R1: 1.0846, R2: 1.0988.
• Support Levels: S1: 1.0384, S2: 1.0242.

Trade Suggestion​

Limit Sell: 1.0440
Take Profit: 1.0332
Stop Loss: 1.0516

GBP/USD Analysis​

Market Overview​

The GBP/USD pair rebounds near 1.2590 during Thursday’s Asian session, recovering from a 1% decline following the Federal Reserve’s hawkish rate cut. Anticipation of the Bank of England’s steady interest rate decision further influences market sentiment.

Key Drivers​

• UK CPI rose by 2.6% YoY in November, while Core CPI increased to 3.5%.
• The Bank of England is expected to maintain its current interest rates, focusing on curbing high domestic inflation.
• The pair remains under pressure as traders await critical US economic data, including GDP figures and jobless claims.

Technical Overview

​

• Moving Averages: Negative crossovers for MA 10, MA 20, and MA 50 reinforce bearish sentiment.
• Indicators: RSI at 41.64 (neutral); Stochastic Oscillator at 23.65 (neutral).
• Resistance Levels: R1: 1.2970, R2: 1.3102.
• Support Levels: S1: 1.2542, S2: 1.2410.

Trade Suggestion​

Limit Sell: 1.2624
Take Profit: 1.2485
Stop Loss: 1.2728

AUD/USD Analysis​

Market Overview​

The Australian Dollar stabilizes after trimming intraday losses during Thursday’s session. The AUD/USD pair remains under pressure due to the Federal Reserve’s hawkish stance and rising Consumer Inflation Expectations in Australia.

Key Drivers​

• The Fed’s 25 basis point rate cut bolstered the US Dollar.
• Australia’s Consumer Inflation Expectations rose to 4.2% in December, the highest since September.
• Market speculation on potential RBA rate cuts adds downward pressure on the AUD.

Technical Overview

• Moving Averages: Negative crossovers for MA 10, MA 20, and MA 50 confirm bearish momentum.
• Indicators: RSI at 27.59 (sell zone); Stochastic Oscillator at 4.73 (neutral).
• Resistance Levels: R1: 0.6641, R2: 0.6701.
• Support Levels: S1: 0.6447, S2: 0.6387.

Trade Suggestion​

Limit Sell: 0.6293
Take Profit: 0.6199
Stop Loss: 0.6366


Read More And Visit Us - Capital Street FX

 

[forexnews]

EUR/USD Consolidates and GBP/USD Subdued - 23/12/2024​

KEY HIGHLIGHTS ​

• EUR/USD Consolidates Amid Light Volumes, Focus on Fed.
• GBP/USD Subdued as Market Awaits Key Economic Data.
• USD/JPY Bullish Tone Supported by Fed’s Hawkish Stance.
• AUD/USD Declines, Focus Shifts to RBA Minutes.

INTRODUCTION​

Currency markets kicked off the week cautiously, with major pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD consolidating amid subdued trading volumes. Investors are focusing on central bank policies, economic data, and geopolitical developments to shape near-term price movements.

---

EUR/USD: Consolidation Amid a Holiday-Shortened Week​

The EUR/USD pair remains steady, trading near 1.0440 during Monday’s European session. This consolidation comes as markets prepare for a holiday-shortened week, with Christmas Eve and Boxing Day affecting trading schedules on Wednesday and Thursday.

Key Factors Influencing EUR/USD​

• US Dollar Stabilization: After a steep decline on Friday due to weaker-than-expected US Personal Consumption Expenditure (PCE) Price Index data, the US Dollar (USD) has stabilized. Core PCE inflation, the Federal Reserve’s preferred metric, rose by 2.8% year-over-year, slightly below the 2.9% forecast. This has raised uncertainties about the Fed’s potential rate-cut cycle in 2025.
• Economic Calendar: Monday’s schedule is light, with investors turning their attention to Tuesday’s release of US Durable Goods Orders for November, expected to show a 0.4% decline after a 0.3% rise in October.

Technical Overview​

​

• Moving Averages:
  • Exponential: MA10 (1.0446), MA20 (1.0491), MA50 (1.0619) – All indicating bearish momentum.
  • Simple: MA10 (1.0454), MA20 (1.0496), MA50 (1.0633) – Negative crossover confirming bearish trends.
• Indicators:
  • RSI: 38.87 (Sell Zone)
  • Stochastic Oscillator: 19.35 (Neutral)
• Key Levels:
  • Resistance: R1 (1.0846), R2 (1.0988)
  • Support: S1 (1.0384), S2 (1.0242)

Trade Suggestion​

Limit Sell: 1.0460 | Take Profit: 1.0344 | Stop Loss: 1.0548

---

GBP/USD: Range-Bound with Limited Upside Potential​

Visit Us - Capital Street FX

 

[forexnews]

NZD/USD Gains and USD/CAD Recovers Amid Trump’s Tariffs.​

KEY HIGHLIGHTS​

• EUR/USD Dips Amid Tariff Tensions and Economic Data.
• GBP/USD Climbs as Dollar Weakens, Retail Sales Surge.
• NZD/USD Gains Amid Tariff Policy Uncertainty and PMI.
• USD/CAD Recovers Amid Trump’s Tariffs and Trudeau Speculation.

INTRODUCTION​

The forex market is experiencing notable movements as traders react to renewed uncertainty surrounding U.S. tariff policies and significant economic data releases. The NZD/USD and USD/CAD pairs are in focus, with the former gaining ground and the latter recovering amid political and economic developments. President-elect Donald Trump’s reaffirmation of his tariff plans has injected volatility into the currency markets, alongside mixed economic indicators from major global economies.

---

NZD/USD Records Gains Amid Tariff Uncertainty​

The NZD/USD pair is trading near 0.5640, recording modest gains during Tuesday’s Asian session. A weaker U.S. dollar (USD) and robust economic data from China support the New Zealand dollar (NZD).

• Market Drivers:​

  • U.S. Tariff Plans: Reports from the Washington Post suggest that Trump’s tariff strategy might narrow to focus on critical goods and services, adding uncertainty to the market.
  • Chinese Economic Data: The Caixin PMI showed a seven-month high in China’s services activity for December, signaling economic resilience. This has positive implications for the NZD, given New Zealand’s strong trade ties with China.
  • Federal Reserve Commentary: Hawkish remarks from Fed Governor Lisa Cook emphasized caution in further rate cuts, citing persistent inflation pressures. These comments could provide temporary support for the USD.

• Technical Analysis:
  

  

  • Moving Averages:
    • Exponential MA 10: 0.5635 (Bullish)
    • Simple MA 10: 0.5623 (Bullish)
  • Indicators:
    • RSI: 42.41 (Neutral)
    • Stochastic Oscillator: 38.95 (Neutral)
  • Support and Resistance Levels:
    • R1: 0.5829 | R2: 0.5908
    • S1: 0.5573 | S2: 0.5494
• Trade Suggestion:
  • Limit Sell: 0.5750
  • Take Profit: 0.5608
  • Stop Loss: 0.5854

---

USD/CAD Recovers Ground Amid Trump and Trudeau Developments​

The USD/CAD pair has regained momentum, trading near 1.4345 during the early Asian session. The pair’s recovery follows President-elect Trump’s strong stance on maintaining broad tariff policies, alongside political uncertainty in Canada.

• Market Drivers:​

  • U.S. Tariff Policy: Trump dismissed reports that his tariff plans would focus on a limited range of imports, keeping markets alert for more assertive trade measures.
  • Canadian Political Uncertainty: Speculation surrounding Prime Minister Justin Trudeau’s potential resignation adds another layer of volatility. Reports suggest an announcement may come ahead of an emergency Liberal Party meeting.
  • Federal Reserve Insights: Hawkish commentary from Fed officials continues to influence the Greenback’s performance.

• Technical Analysis:
  

  

  • Moving Averages:
    • Exponential MA 20: 1.4318 (Bullish)
    • Simple MA 50: 1.4134 (Bullish)
  • Indicators:
    • RSI: 54.41 (Neutral)
    • Stochastic Oscillator: 45.78 (Neutral)
  • Support and Resistance Levels:
    • R1: 1.4461 | R2: 1.4574
    • S1: 1.4097 | S2: 1.3984
• Trade Suggestion:
  • Limit Buy: 1.4272
  • Take Profit: 1.4382
  • Stop Loss: 1.4223

---

EUR/USD Under Pressure Amid Tariff Threats​

READ MORE - CAPITAL STREET FX

 

[forexnews]

AUD/USD Bearish and USD/CHF Bullish: Forex Market Update.​

KEY HIGHLIGHTS​

• EUR/USD edges toward 1.0350 amid economic data anticipation.
• GBP/USD defensive below 1.2500 awaiting FOMC Minutes.
• AUD/USD bearish despite inflation data, FOMC Minutes awaited.
• USD/CHF bullish near 0.9100 ahead of key releases.

INTRODUCTION​

Global currency markets are navigating mixed signals, with the Australian Dollar (AUD) under pressure while the US Dollar (USD) shows resilience, particularly against the Swiss Franc (CHF). This report delves into the latest developments, focusing on AUD/USD’s bearish momentum and USD/CHF’s bullish outlook. Additional insights into EUR/USD and GBP/USD are also covered for comprehensive analysis.

---

AUD/USD: Bearish Momentum Amid Inflation and Policy Concerns​

The Australian Dollar struggles for the second consecutive session against the US Dollar, with the AUD/USD pair trading lower despite stronger-than-expected monthly inflation data. Weak economic indicators and a cautious Reserve Bank of Australia (RBA) weigh heavily on the pair.

Key Drivers:​

• Inflation Trends: Australia’s trimmed mean inflation declined to 3.2% annually, nearing the RBA’s target range of 2-3%, dampening expectations of aggressive monetary tightening.
• Building Permits: New construction permits dropped by 3.6% in November, marking the first decline in three months and missing market expectations.
• China’s Economic Support: The People’s Bank of China’s (PBoC) collaborative measures to stimulate growth provide limited relief to AUD.

Technical Overview:

​

• Moving Averages:
  • Exponential: MA 10 at 0.6228 (Bearish), MA 20 at 0.6263 (Bearish), MA 50 at 0.6380 (Bearish).
  • Simple: MA 10 at 0.6215 (Bullish), MA 20 at 0.6249 (Bearish), MA 50 at 0.6402 (Bearish).
• RSI: 37.03 (Sell Zone, Neutral).
• Stochastic Oscillator: 40.18 (Neutral Zone).
• Resistance Levels: R1: 0.6428, R2: 0.6509.
• Support Levels: S1: 0.6166, S2: 0.6085.

Trade Suggestion:​

• Action: Limit Sell at 0.6301.
• Take Profit: 0.6180.
• Stop Loss: 0.6388.

---

USD/CHF: Bullish Momentum Supported by US Dollar Strength​

Visit For Read Full Report - Capital Street FX

 

[forexnews]

EUR/USD Tests Two-Year Lows, GBP/USD Rebounds.​

KEY HIGHLIGHTS​

• EUR/USD tests two-year lows, struggles to regain momentum.
• GBP/USD rebounds above 1.2200 despite stagflation concerns.
• USD/CHF retreats toward 0.9150 ahead of US PPI data.
• NZD/USD finds support near 0.5600, rebounds cautiously.

INTRODUCTION​

Global currency markets remain highly volatile as economic data releases and geopolitical developments influence key forex pairs. Both EUR/USD and GBP/USD are in focus, with EUR/USD testing two-year lows and GBP/USD showing signs of recovery. Below, we delve into the critical factors impacting these pairs and provide technical insights.

---

EUR/USD Struggles at Two-Year Lows​

EUR/USD extended its bearish trajectory on Monday, hitting the 1.0200 level for the first time since late 2022. Despite a modest recovery attempt, the pair remains under pressure as the European Central Bank (ECB) continues its rate-cutting stance. This widens the Euro’s interest rate disadvantage relative to the US Dollar, especially as the Federal Reserve maintains a hawkish monetary policy.

Key economic data from Europe this week, including final inflation figures for the Eurozone and Germany, are expected to align with preliminary estimates, offering little support to the Euro. Meanwhile, the US is set to release critical economic reports, including the Producer Price Index (PPI) and Consumer Price Index (CPI), which could reinforce USD strength.

Technical Overview

• Moving Averages (Exponential):
  • MA 10: 1.0300 | Negative Crossover | Bearish
  • MA 20: 1.0349 | Negative Crossover | Bearish
  • MA 50: 1.0481 | Negative Crossover | Bearish
• RSI (Relative Strength Index): 34.90 | Sell Zone | Bearish
• Stochastic Oscillator: 20.12 | Sell Zone | Neutral
• Support Levels: S1: 1.0333 | S2: 1.0265
• Resistance Levels: R1: 1.0551 | R2: 1.0619

Trade Suggestion:

• Limit Sell: 1.0302
• Take Profit: 1.0179
• Stop Loss: 1.0407

---

GBP/USD Rebounds Above 1.2200​

GBP/USD broke its five-day losing streak on Tuesday, recovering from Monday’s 15-month low of 1.2099. The pair climbed above 1.2200, supported by improved investor sentiment following reports of a phased approach to US tariff hikes under consideration by President-elect Donald Trump’s economic team. This tempered inflation concerns while boosting the Pound.

Despite the rebound, concerns over the UK’s economic health persist. Stagflation risks, rising UK government bond yields, and fiscal worries continue to weigh on the GBP. Rising Treasury yields reflect the Federal Reserve’s hawkish stance on the US front, further strengthening the USD.

Technical Overview
Visit For Read Full Report - Capital Street FX