Introduction:

In currency trading, the GBP/USD, EUR/USD, AUD/USD, and USD/JPY pairs are making significant moves driven by various factors, including USD fluctuations, central bank decisions, and economic data releases. Let’s delve into the latest developments shaping these forex pairs.

GBP/USD:

In the face of significant USD supply, GBP/USD soars beyond 1.2500 and recovers further from a multi-month low.

On Monday, GBP/USD regained some positive momentum and retreated from a three-month low. A significant component providing some support is viewed as a small USD decline from a multi-month high. Now, traders are looking to this week’s important macroeconomic data from the US and the UK for a new boost.

The GBP/USD currency pair reversed higher in the Asian session on Friday after dropping more than 100 pips over the previous three days. However, the pair lost steam near 1.2500, underscoring the significance of this technical level.

On Thursday, the US Dollar maintained its strength and kept the GBP/USD exchange rate in the red after the Department of Labor’s weekly report showed that initial claims for unemployment benefits fell from 229,000 to 216,000.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 1.2499 | Negative Crossover | Bearish
• MA 20: 1.2553 | Negative Crossover | Bearish
• MA 50: 1.2608 | positive Crossover | Bullish

Simple:

• MA 5: 1.2491 | Negative Crossover | Bearish
• MA 20: 1.2553 | Negative Crossover | Bearish
• MA 50: 1.2626 | positive Crossover | Bullish
  

RSI (Relative Strength Index): 42.81 | Neutral Zone | Neutral

Stochastic Oscillator: 58.12| Buy Zone | Positive

Resistance And Support Levels :

• R1: 1.2546 | R2: 1.26370
• S1: 1.2482 | S2: 1.2387

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 1.2453 | Take Profit: 1.2387 | Stop Loss: 1.2503

EUR/USD:

Investors are awaiting the US CPI and ECB rate decision as the EUR/USD makes modest gains around 1.0725 due to the weaker USD.

After rebounding from the low of 1.0697, the EUR/USD pair makes up some of the lost territory at about 1.0725. The US Dollar’s downward pressure supports the key pair’s recovery. The US Dollar Index (DXY), meanwhile, corrects lower to 104.70.

After falling on Thursday to a fresh multi-month low below 1.0700, the EUR/USD made a slight recovery. The pair’s bearish tendency is still present, although profit-taking and an uptick in risk appetite may offer support before the weekend.

Investors will closely monitor Federal Reserve (Fed) officials’ remarks as well. On Saturday, the Fed’s blackout period will begin, and policymakers may make some closing comments on the outlook.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1.0722 | Negative Crossover | Bearish
• MA 20: 1.0749 | Negative Crossover | Bearish
• MA 50: 1.0806 | positive Crossover | Bullish

Simple:

• MA 5: 1.0715 | Negative Crossover | Bearish
• MA 20: 1.0749 | Negative Crossover | Bearish
• MA 50: 1.0811 | positive Crossover | Bullish
  

RSI (Relative Strength Index): 42.32 | Neutral Zone | Neutral

Stochastic Oscillator: 73.22 | Buying Zone | Positive

Resistance And Support Levels :

• R1: 1.0747| R2: 1.0801
• S1: 1.0708 | S2: 1.0656

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 1.0693 | Take Profit: 1.0656 | Stop Loss: 1.0722

AUD/USD:

On a USD downturn, the AUD/USD pair recovers to 0.6400 and above.

Early on Monday, the AUD/USD pair began to move higher over 0.6400, encouraged by the US Dollar’s weakness due to the USD/JPY sell-off and an increase in the AUD/JPY cross. A cautious attitude and increased US Treasury bond yields are ignored by the markets.

The Reserve Bank of Australia (RBA) maintained its interest rate policy this week, keeping the Australian Dollar active. RBA Governor Philip Lowe noted that the wage growth is solid and that the unemployment rate can continue to be close to 40-year lows when discussing the labor market outlook.

Investors are currently watching the August CPI report, which will be released on Saturday. The monthly rate of economic growth is projected to be 0.3%, which is faster than the 0.2% rate that was observed in July. Annual inflation is estimated to be 0.1% compared to a 0.3% deflation.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 0.6411 | Positive Crossover | Bullish
• MA 20: 0.6412 | Positive Crossover | Bullish
• MA 50: 0.6439 | Negative Crossover | Bearish

Simple:

• MA 5: 0.6405 | Positive Crossover | Bullish
• MA 20: 0.6415 | Positive Crossover | Bullish
• MA 50: 0.6427 | positive Crossover | Bullish
  

RSI (Relative Strength Index): 53.29 | Buying Zone | Bullish

Stochastic Oscillator: 77.5 | Buy Zone | Positive

Resistance And Support Levels :

• R1: 0.6445 | R2: 0.6508
• S1: 0.6397 | S2: 0.6355

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 0.6462 | Take Profit: 0.6508 | Stop Loss: 0.6431

USD/JPY:

USD/JPY resumes BoJ’s Ueda-led slide below 146.00

The USD/JPY is continuing to decline below 146.00 after starting the day with a significant negative gap. The hawkish remarks from BoJ Governor Ueda, who hinted at potential rate increases, continue to seriously damage the partnership.

Kanda warned against the recent decline in the value of the Japanese Yen (JPY) and said that if speculative movements in the currency market persist, authorities won’t rule out any possibilities. The USD/JPY pair has fallen because of this announcement.

Investors will undoubtedly pay great attention to the impending US data releases. Later in the North American session, the US S&P Global PMIs and the US ISM Services PMI for August are expected to be released. These data releases will provide insightful information on the US economy now and may help to clarify the direction of the USD/JPY pair.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 146.75 | Negative Crossover | Bearish
• MA 20: 146.82 | Negative Crossover | Bearish
• MA 50: 146.17 | Negative Crossover | Bearish

Simple:

• MA 5: 146.95 | Negative Crossover | Bearish
• MA 20: 146.80 | Negative Crossover | Bearish
• MA 50: 146.26 | Negative Crossover | Bullish
  

RSI (Relative Strength Index): 43.68 | Neutral Zone | Neutral

Stochastic Oscillator: 23.72| Selling Zone | Negative

Resistance And Support Levels :

• R1: 146.98 | R2: 147.84
• S1: 145.97 | S2: 144.64

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 145.65 | Take Profit: 144.64 | Stop Loss: 146.43

Elsewhere in the Forex Market

NZD/USD up 0.76% to 0.5926. The EUR/JPY down 0.86% to 156.69. The USDCHF is down 0.23% at 0.8908. USD/CAD down 0.32% at 1.3596, EUR/GBP down 0.07% at 0.8572. The USD/CNY is down 0.67% at 7.2939, and AUD/SEK up 0.77% at 7.1349 at the time of writing.

Key Economic Events & Data Release Today:

(GBP) BoE MPC Member Pill Speaks at 13:30.