. Daily FX Analysis - EUR/USD, GBP/USD, NZD/USD, USD/JPY.

Daily FX Analysis – EUR/USD, GBP/USD, NZD/USD, USD/JPY.

Daily FX Analysis – EUR/USD, GBP/USD, NZD/USD, USD/JPY.

10 Jan 2024

Introduction

In the foreign exchange market, EUR/USD hovers around 1.0930, with cautious market sentiment influencing the pair. The Euro finds support from improved risk sentiment and negative US Treasury bond yields, exerting pressure on the US Dollar. Meanwhile, GBP/USD rebounds above 1.2700 amid renewed risk appetite, awaiting Bank of England Governor Bailey’s testimony. NZD/USD consolidates around 0.6240, anticipating the US Consumer Price Index data for potential market cues. Additionally, the Japanese Yen weakens below 145.00 against the US Dollar, driven by subdued domestic wage growth and a cautious market mood.

Markets In Focus Today – EURUSD

EUR/USD is On the defensive near 1.0930, as markets stay cautious.

EUR/USD is back on the bids, trading close to 1.0950 in the European trading hours on Wednesday. The pair finds support from a recovery in risk sentiment and negative US Treasury bond yields, weighing on the US Dollar. EUR/USD edged lower on Tuesday as the risk-averse market atmosphere helped the US Dollar (USD) gather strength against its rivals. The pair struggles to stage a rebound early Wednesday and trades below 1.0950. Later in the American session, Federal Reserve Bank of New York President John Williams will be delivering a speech.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.10 | Negative Crossover | Bearish
  • MA 20 : 1.10 | Negative Crossover | Bearish
  • MA 50 : 1.09 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.10 | Negative Crossover | Bearish
  • MA 20 : 1.10 | Negative Crossover | Bearish
  • MA 50 : 1.09 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.48 | Buy Zone | Bullish

Stochastic   Oscillator : 25.54 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 1.11 R2 : 1.12
  • S1 : 1.08 S2 : 1.07

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 1.0945 | Take Profit: 1.1038 | Stop Loss: 1.0892

GBP/USD

GBP/USD regains 1.2700 amid risk reset, awaits Bailey.

GBP/USD is regaining traction above 1.2700 in the European session on Wednesday. An improvement in the market mood and renewed US Dollar weakness underpin the pair ahead of BoE Governor Bailey’s testimony. GBP/USD edged lower and snapped a 4-day winning streak on Tuesday, pressured by the negative shift seen in risk sentiment. The pair holds steady above 1.2700 early Wednesday but the technical outlook doesn’t yet point to a build-up of recovery momentum. Later in the American session, Bank of England (BoE) Governor Andrew Bailey will testify before the Treasury Select Committee. Bailey will respond to questions regarding the threat to financial stability posed by high-interest rates.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.27 | Positive Crossover | Bullish
  • MA 20 : 1.27 | Positive Crossover | Bullish
  • MA 50 : 1.26 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.27 | Positive Crossover | Bullish
  • MA 20 : 1.27 | Positive Crossover | Bullish
  • MA 50 : 1.26 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.00 | Buy Zone | Bullish

Stochastic   Oscillator : 54.53 | 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: 1.2713 | Take Profit: 1.2822 | Stop Loss: 1.2653

NZDUSD

NZDUSD Trades sideways around 0.6240 as the focus shifts to US Inflation.

NZD/USD consolidates around 0.6240 as investors await the US CPI data for December. US core CPI is seen softening to 3.8% from 4.0% in November. The Kiwi asset oscillates in a symmetrical triangle, indicating a sideways move ahead. The NZD/USD pair struggles for a direction as investors await the United States Consumer Price Index (CPI) data for December, which is scheduled for Thursday. The Kiwi asset trades back and forth around 0.6240 amid hopes that the release of the US inflation data will provide fresh cues about the likely monetary policy action by the Federal Reserve (Fed) for January’s monetary policy meeting.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.63 | Negative Crossover | Bearish
  • MA 20 : 0.62 | Negative Crossover | Bearish
  • MA 50 : 0.62 | Positive Crossover | Bullish

Simple :

  • MA 10 : 0.63 | Negative Crossover | Bearish
  • MA 20 : 0.63 | Negative Crossover | Bearish
  • MA 50 : 0.61 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.26 | Buy Zone | Bullish

Stochastic   Oscillator : 30.34 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 0.64 R2 : 0.64
  • S1 : 0.61 S2 : 0.61

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 0.6221 | Take Profit: 0.6315 | Stop Loss: 0.6164

USD/JPY

Japanese Yen weakens further below 145.00 against the USD, bearish potential seems intact.

The Japanese Yen weakens following the release of weaker domestic wage growth data. The prevalent cautious market mood does little to support the safe-haven JPY. They subdued USD price action caps gains for USD/JPY as traders await US CPI on Thursday. The Japanese Yen (JPY) extends its depreciating move for the second straight day on Wednesday and weakens further below the 145.00 psychological mark against the US Dollar (USD) during the early part of the European session.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 143.79 | Positive Crossover | Bullish
  • MA 20 : 143.78 | Positive Crossover | Bullish
  • MA 50 : 145.22 | Negative Crossover | Bearish

Simple :

  • MA 10 : 143.16 | Positive Crossover | Bullish
  • MA 20 : 142.84 | Positive Crossover | Bullish
  • MA 50 : 146.26 | Negative Crossover | Bearish

RSI (Relative Strength Index): 56.09 | Buy Zone | Bullish

Stochastic   Oscillator : 76.42 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 146.29 R2 : 148.19
  • S1 : 140.10 S2 : 138.19

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 144.76 | Take Profit : 146.57 | Stop Loss : 143.68

Elsewhere In The Forex Market

EUR/GBP up 0.01% to 0.8601. The AUD/USD up 0.43% to 0.6696. The USD/CAD is down 0.16% at 1.3368. USD/JPY up 0.26% at 144.84. EUR/JPY is up 0.44% at 158.60, The USD/CNY is down 0.01% at 7.1680, and AUD/SEK is up 0.09% at 6.8673, at the time of writing.

Key Economic Events & Data Release Today:

(GBP) BoE Gov Bailey Speaks at 20:45. (USD) Crude Oil Inventories Forecast –0.675M, Previous –5.503M at 21:00.