. Daily FX Analysis - EUR/USD, AUD/USD, USD/CAD, NZD/USD Highlights.

Daily FX Analysis – EUR/USD, AUD/USD, USD/CAD, NZD/USD Highlights.

Daily FX Analysis – EUR/USD, AUD/USD, USD/CAD, NZD/USD Highlights.

09 Nov 2023

Introduction:

In the dynamic world of forex trading, Major currency pairs exhibit mixed movements amidst a quiet market environment. The EUR/USD pair consolidates around the 1.0700 level, while the AUD/USD pair attempts to snap its three-day losing streak. The USD/CAD pair edges lower on softer USD, while the NZD/USD pair rebounds from weekly lows. Investors await speeches from ECB President Lagarde and Fed Chair Powell for further direction.

EUR/USD:

EUR/USD defends 1.0700 amid quiet markets.

The EUR/USD is maintaining its position near 1.0700, exhibiting a lack of volatility in the European trading session on Thursday. After its recent upward movement, the pair is trading sideways amidst a tranquil market environment.

The EUR/USD staged a remarkable rebound during the American session, erasing earlier losses and climbing back to the 1.0700 level. This resilience came despite the US Dollar strengthening against riskier currencies.

Investors’ focus is shifting towards speeches from ECB President Lagarde and Fed Chair Powell. Their remarks could influence the pair’s trajectory in the near future.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.0697 | Positive Crossover | Bullish
  • MA 20: 1.0672 | Positive Crossover | Bullish
  • MA 50: 1.0633 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.0692 | Positive Crossover | Bullish
  • MA 20: 1.0667 | Positive Crossover | Bullish
  • MA 50: 1.0617| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.98| Buy Zone | Bullish

Stochastic Oscillator: 32.81| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 1.0712| R2: 1.0840
  • S1: 1.0615| S2: 1.0495

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.0746 | Take Profit: 1.0840 | Stop Loss: 1.0686

AUD/USD:

AUD/USD oscillates post intraday gains amid tepid US Dollar.

The Australian Dollar (AUD) is attempting to end its three-day decline. Still, it faces headwinds from a dovish rate statement by Australia’s central bank and weaker-than-expected Chinese inflation data.

Moreover, the reluctance of US Federal Reserve officials to consider interest rate cuts has further fuelled a risk-off mood, putting additional pressure on the AUD.

The Australian Dollar (AUD) seeks to break its three-day losing streak amidst a subdued US Dollar (USD), possibly driven by waning US Treasury yields. However, the AUD/USD pair faced downward pressure following a cautious rate statement from the Reserve Bank of Australia (RBA) following their policy meeting.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.6414| Negative Crossover | Bearish
  • MA 20: 0.6420| Negative Crossover | Bearish
  • MA 50: 0.6396 | Positive Crossover | Bullish

Simple:

  • MA 5: 0.6414 | Negative Crossover | Bearish
  • MA 20: 0.6434 | Negative Crossover | Bearish
  • MA 50: 0.6375 | Positive Crossover | Bullish

RSI (Relative Strength Index): 48.86| Buy Zone | Bullish

Stochastic Oscillator: 3.11| Sell zone | Negative

Resistance And Support Levels:

  • R1: 0.6492| R2: 0.6587
  • S1: 0.6404| S2: 0.6296

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 0.6363| Take Profit: 0.6296 | Stop Loss: 0.6415

USD/CAD:

USD/CAD edges lower on softer USD and lacks follow-through amid bearish oil prices.

The USD/CAD is trading with a slight downward bias, weighed down by a modest decline in the US Dollar. However, the uncertainty surrounding the Federal Reserve’s interest rate hiking path should help prevent any significant USD slump.

On the other hand, bearish oil prices could continue to pressure the Canadian Dollar (Loonie), potentially providing support to the USD/CAD pair.

The USD/CAD pair retreated slightly during the Asian trading session on Thursday, seemingly ending the three-day winning streak that propelled it to a weekly high around the 1.3815 level touched the previous day. Current spot prices linger below the 1.3800 mark, yet underlying factors suggest caution for bearish traders seeking a meaningful depreciation.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.3785 | Positive Crossover | Bullish
  • MA 20: 1.3767| Positive Crossover | Bullish
  • MA 50: 1.3748 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.3791 | Positive Crossover | Bullish
  • MA 20: 1.3763 | Positive Crossover | Bullish
  • MA 50: 1.3763| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.5| Buying Zone| Bullish

Stochastic Oscillator: 99.74 |Buying Zone | Positive

Resistance And Support Levels:

  • R1: 1.3798| R2: 1.3898
  • S1: 1.3731 | S2: 1.3634

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.3823 | Take Profit: 1.3898 | Stop Loss: 1.3778

NZD/USD:

NZD/USD rebounds from weekly lows, and trades near 0.5930.

The NZD/USD pair gained ground as the US Dollar temporarily paused its upward trend. China’s subdued CPI data had no significant impact on the Kiwi Dollar, while the Reserve Bank of New Zealand’s (RBNZ) inflation report contributed to some selling pressure on the NZD.

The New Zealand Dollar (NZD) regained ground during the Asian session on Thursday, trading near the 0.5930 level, rebounding from the recent lows as the US Dollar paused its upward momentum. China’s mixed economic data had a muted impact on the NZD, with subdued inflation figures marginally outweighing stronger-than-expected producer prices.

The New Zealand Dollar (NZD) faces downward pressure as the possibility of a bleak global economic outlook casts a shadow over its performance.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.5926 | Positive Crossover | Bullish
  • MA 20: 0.5915| Positive Crossover | Bullish
  • MA 50: 0.5897| Positive Crossover | Bullish

Simple:

  • MA 5: 0.5923 | Positive Crossover | Bullish
  • MA 20: 0.5918| Positive Crossover | Bullish
  • MA 50: 0.5867| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.29| Buying Zone | Bullish

Stochastic Oscillator: 9.79| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 0.5932 | R2: 0.5996
  • S1: 0.5873 | S2: 0.5809

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 0.5945| Take Profit: 0.5995 | Stop Loss: 0.5910.

Elsewhere in the Forex Market

GBP/USD up 0.03% to 1.2283. The USD/CHF was up 0.06% to 0.8998. The EUR/GBP down 0.3% at 0.8714. USD/JPY was down 0.04% at 150.91, EUR/JPY was down 0.02% at 161.61, The USD/CNY was up 0.08% at 7.2856, AUD/SEK up 0.05% at 6.9800, at the time of writing.

Key Economic Events & Data Release Today:

(CNY) CPI (MoM) (Oct) Actual –0.1%, Forecast 0.0%, Previous 0.2% at 07:00.

(USD) Initial Jobless Claims Forecast 215K, Previous 217K at 19:00.

(CAD) BoC Senior Deputy Governor Roger Speaks at 22:15.

(USD) ECB President Lagarde Speaks at 23:00