. Daily FX Analysis - EUR/USD, GBP/USD, USD/CAD.

Daily FX Analysis – EUR/USD, GBP/USD, USD/CAD.

Daily FX Analysis – EUR/USD, GBP/USD, USD/CAD.

26 Mar 2024

Introduction

EUR/USD strengthens towards 1.0850 amid ongoing weakness in the USD. The pair saw a resurgence in the early European session on Tuesday, propelled by a declining US Dollar and improved risk sentiment. Investors turn their attention to mid-tier US economic data and ECB commentary. Meanwhile, GBP/USD rebounds, while USD/CAD faces pressure from lower Treasury yields and crude oil prices.

Markets In Focus Today – EUR/USD

EUR/USD advances to near 1.0850 amid sustained USD weakness.

EUR/USD is trading near 1.0850, recovering ground in the early European session on Tuesday. A fresh leg down in the US Dollar exerts downside pressure on the pair amid an improvement in risk sentiment. Mid-tier US economic data and ECB-speak-eyed. EUR/USD fluctuates at around 1.0850 in the early European session on Tuesday after closing in positive territory on Monday. Improving risk mood could make it difficult for the US Dollar (USD) to find demand and help the pair extend its recovery in the near term. The modest selling pressure surrounding the USD allowed EUR/USD to gain traction at the beginning of the week.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.0862 | Negative Crossover | Bearish
  • MA 20 : 1.0864 | Negative Crossover | Bearish
  • MA 50 : 1.0857 | Negative Crossover | Bearish

Simple :

  • MA 10 : 1.0872 | Negative Crossover | Bearish
  • MA 20 : 1.0877 | Negative Crossover | Bearish
  • MA 50 : 1.0839 | Positive Crossover | Bullish

RSI (Relative Strength Index): 47.4930 | Buy Zone | Bullish

Stochastic   Oscillator : 14.6518 | Neutral Zone | Positive

Resistance   And Support Levels :

  • R1 : 1.0876 R2 : 1.0924
  • S1 : 1.0722 S2 : 1.0674

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell : 1.0862 | Take Profit: 1.0807 | Stop Loss: 1.0906

GBP/USD

Pound Sterling recovers against US Dollar on upbeat market sentiment.

The Pound Sterling rebounds as market mood improves and the US Dollar faces a modest correction. BoE Bailey says he doesn’t see market expectations for two or three rate cuts as unreasonable. This week, the US Dollar’s moves will be driven by the core PCE price index data. The Pound Sterling (GBP) extended its upside to 1.2650 against the US Dollar in Tuesday’s London session as the latter faces profit-taking after refreshing monthly highs. The GBP/USD pair exhibits a sound recovery even though investors expect that the Bank of England (BoE) will be more dovish this year than previously anticipated, driven by lower-than-anticipated inflation data in January and February Two BoE policymakers, Catherine Mann and Jonathan Haskel – who voted for rate hikes in February – dropped their hawkish calls on interest rates in the March meeting. This has boosted confidence among investors that inflation in the United Kingdom is moving in the right direction.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.2689 | Positive Crossover | Bullish
  • MA 20 : 1.2700 | Negative Crossover | Bearish
  • MA 50 : 1.2680 | Negative Crossover | Bearish

Simple :

  • MA 10 : 1.2707 | Positive Crossover | Bullish
  • MA 20 : 1.2720 | Negative Crossover | Bearish
  • MA 50 : 1.2679 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.0016 | Neutral Zone | Neutral

Stochastic   Oscillator : 16.7715 | Neutral Zone | Positive

Resistance   And Support Levels :

  • R1 : 1.2735 R2 : 1.2794
  • S1 : 1.2541 S2 : 1.2482

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 1.2692 | Take Profit: 1.2620 | Stop Loss: 1.2751

USD/CAD

USD/CAD remains in the negative territory after paring losses, trading around 1.3580.

USD/CAD faced challenges due to lower US Treasury yields on Tuesday. The lower WTI price could contribute to pressure on the Canadian Dollar. Greenback could struggle on market expectations of the Fed commencing an easing cycle.USD/CAD trims intraday losses but remains in the negative zone, which could be attributed to an improved US Dollar (USD). The USD/CAD pair edges lower to 1.3580 during the Asian trading hours on Tuesday. Additionally, the decline in Crude oil prices could have provided pressure to undermine the Canadian Dollar (CAD), reinforcing the USD/CAD pair. West Texas Intermediate (WTI) oil price edges lower to near $81.70 per barrel, by the press time. However, oil prices strengthened after the United States Energy Information Administration (EIA)increased its forecast prices for Crude oil and petroleum products for the remainder of 2024.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.3551 | Positive Crossover | Bullish
  • MA 20 : 1.3534 | Positive Crossover | Bullish
  • MA 50 : 1.3508 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.3542 | Positive Crossover | Bullish
  • MA 20 : 1.3535 | Positive Crossover | Bullish
  • MA 50 : 1.3500 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.0776 | Buy Zone | Bullish

Stochastic   Oscillator : 87.9319 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 1.3607 R2 : 1.3664
  • S1 : 1.3424 S2 : 1.3367

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Stop Buy: 1.3593 | Take Profit: 1.3661 | Stop Loss: 1.3553

NZD/USD

NZD/USD trades sideways above 0.6000 on a softer US Dollar, US PCE data eyed.

NZD/USD hovers around 0.6000 in Tuesday’s early Asian session. The US February New Home Sales came in at -0.3% MoM vs. 1.7% gain in January, weaker than expected. Concerns over stunted economic growth and the slump in the GDP numbers weigh on the Kiwi. The NZD/USD traded on a flat note around the 0.6000 mark during the early Asian session on Tuesday. The USD Index (DXY) retreats from the recent peaks and remains above the 104.00 mark. Investors await the US February Personal Consumption Expenditures Price Index (PCE) data, which might offer some hints about underlying momentum in inflation. The US Federal Reserve (Fed) policymakers indicated that they will be in a position to cut interest rates when they have confidence that inflation is progressing towards the 2.0% target.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.6053 | Negative Crossover | Bearish
  • MA 20 : 0.6082 | Negative Crossover | Bearish
  • MA 50 : 0.6110 | Negative Crossover | Bearish

Simple :

  • MA 10 : 0.6063 | Negative Crossover | Bearish
  • MA 20 : 0.6094 | Negative Crossover | Bearish
  • MA 50 : 0.6110 | Negative Crossover | Bearish

RSI (Relative Strength Index): 36.9620 | Sell Zone | Bearish

Stochastic   Oscillator : 7.1721 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 0.6182 R2 : 0.6224
  • S1 : 0.6044 S2 : 0.6002

Overall Sentiment : Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 0.6037 | Take Profit: 0.5979 | Stop Loss: 0.6082

Elsewhere In The Forex Market

AUD/USD up 0.02% to 0.6541, The USD/CHF up 0.18% to 0.9010. The EUR/GBP up 0.08% at 0.8549. USD/JPY down 0.08% at 151.28. AUD/NZD is down 0.14% at 1.0874, The USD/CNY is up 0.13% at 7.2189, and the AUD/SEK is down 0.06% at 6.9137, at the time of writing.

Key Economic Events & Data Release Today:

(CAD) Wholesale Sales (MoM) Previous 0.1% at 18:00. (USD) Durable Goods Orders (MoM) (Feb) Forecast 1.2%, Previous –6.1% at 18:00. (USD) CB Consumer Confidence (Mar) Forecast 106.9, Previous 106.7 at 19:30.