. Daily FX Analysis - GBP, EUR, USD, CAD, NZD dynamics.

Daily FX Analysis – GBP, EUR, USD, CAD, NZD dynamics.

Daily FX Analysis – GBP, EUR, USD, CAD, NZD dynamics.

30 Jan 2024

Introduction

GBP/USD remains range-bound above 1.2700 in anticipation of crucial decisions from the Federal Reserve and the Bank of England. The pair struggles for bullish momentum as the cautious market sentiment keeps the US Dollar resilient. Meanwhile, EUR/USD faces resistance at 1.0830, grappling to recover losses amid upward pressure on the greenback. USD/CAD trades softer, influenced by higher oil prices due to geopolitical tensions. NZD/USD attracts buyers above 0.6130, supported by additional stimulus measures in China, though caution prevails ahead of the FOMC meeting.

Markets In Focus Today – GBP/USD

GBP/USD oscillates in the trading range above 1.2700 ahead of the Fed, BoE rate decision.

The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Fed and the BoE. GBP/USD continues to move up and down in a narrow band at around 1.2700 early Monday after closing the previous week virtually unchanged. The near-term technical outlook fails to provide a directional clue but the Federal Reserve’s and the Bank of England’s (BoE) policy announcements later this week could help the pair break out of its range. The cautious market mood at the beginning of the week helps the US Dollar (USD) stay resilient against its rivals and makes it difficult for GBP/USD to gather bullish momentum.

Technical   Overview With Chart :

Moving Averages :

Exponential :

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

Simple :

  • MA 10 : 1.27 | Negative Crossover | Bearish
  • MA 20 : 1.27 | Negative Crossover | Bearish
  • MA 50 : 1.27 | Positive Crossover | Bullish

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

Stochastic   Oscillator : 55.56 | Buy Zone | Positive

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: 1.2699 | Take Profit: 1.2785 | Stop Loss: 1.2657

EUR/USD

EUR/USD hovers around 1.0830 after paring intraday gains.

EUR/USD hovers around 1.0830 during the early European session on Tuesday after trimming its intraday gains. The pair grapples to recover the losses registered in the previous session. The significant level at 1.0850 may act as immediate resistance for the pair. The continuation of upward bias in the greenback continued to weigh on the majority of the risk complex at the beginning of the week, particularly sending EUR/USD to the sub-1.0800 region for the first time since mid-December. Other than USD dynamics, market participants kept digesting the latest ECB event after the central bank matched the broad consensus and left its policy rates unchanged on January 25.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.09 | Negative Crossover | Bearish
  • MA 20 : 1.09 | Negative Crossover | Bearish
  • MA 50 : 1.09 | Negative Crossover | Bearish

Simple :

  • MA 10 : 1.09 | Negative Crossover | Bearish
  • MA 20 : 1.09 | Negative Crossover | Bearish
  • MA 50 : 1.09 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.22 | Sell Zone | Bearish

Stochastic   Oscillator : 16.46 | Sell Zone | Negative

Resistance   And Support Levels :

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

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 1.0850 | Take Profit: 1.0754 | Stop Loss: 1.0925

USD/CAD

USD/CAD Price Keeps the bearish vibe unchanged above the 1.3700 mark

USD/CAD loses traction near 1.3707 despite the firmer US Dollar. The bearish outlook remains intact below the key EMA; the RSI indicator is located in the bearish territory below the 50 midline. The first support level is seen at 1.3350; the immediate resistance level will emerge at 1.3440. The USD/CAD pair trades on a softer note for the fourth consecutive day during the early European session on Tuesday. The higher oil prices amid the ongoing geopolitical tensions in the Middle East lift the commodity-linked Loonie and weigh on the USD/CAD pair. The pair currently trades around 1.3705, losing 0.04% on the day.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.34 | Negative Crossover | Bearish
  • MA 20 : 1.34 | Negative Crossover | Bearish
  • MA 50 : 1.35 | Negative Crossover | Bearish

Simple :

  • MA 10 : 1.35 | Negative Crossover | Bearish
  • MA 20 : 1.34 | Negative Crossover | Bearish
  • MA 50 : 1.34 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.39 | Buy Zone | Bullish

Stochastic   Oscillator : 40.68 | Neutral Zone | Negative

Resistance   And Support Levels :

  • R1 : 1.35 R2 : 1.36
  • S1 : 1.32 S2 : 1.31

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 1.3424 | Take Profit: 1.3329 | Stop Loss: 1.3492

NZD/USD

NZD/USD attracts some buyers above 0.6130, and US Consumer Confidence looms.

NZD/USD trades on a stronger note despite the stronger USD. The Federal Open Market Committee (FOMC) is expected to leave its key rate unchanged at 5.25–5.50% at its January meeting.RBNZ’s Conway said data suggests monetary policy is working, but there is a long way to go before inflation returns to its target of 2%. The NZD/USD pair holds ground above the 0.6100 psychological mark despite the firmer US Dollar (USD) during the early Asian session on Tuesday. The positive news of additional stimulus measures in China boosted the sentiment surrounding the China-proxy New Zealand Dollar (NZD). However, traders might turn cautious ahead of the Federal Open Market Committee’s (FOMC) January meeting on Wednesday. The pair retreats from an intraday high of 0.6143. At press time, the pair is trading at 0.6132, losing 0.01% on the day.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.61 | Positive Crossover | Bullish
  • MA 20 : 0.62 | Negative Crossover | Bearish
  • MA 50 : 0.61 | Negative Crossover | Bearish

Simple :

  • MA 10 : 0.61 | Positive Crossover | Bullish
  • MA 20 : 0.62 | Negative Crossover | Bearish
  • MA 50 : 0.62 | Negative Crossover | Bearish

RSI (Relative Strength Index): 45.35 | Buy Zone | Bullish

Stochastic   Oscillator : 26.96 | Sell Zone | Neutral

Resistance   And Support Levels :

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

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Stop Buy: 0.6146 | Take Profit: 0.6217 | Stop Loss: 0.6102

Elsewhere In The Forex Market

EUR/GBP down 0.01% to 0.8520. The USD/CHF down 0.01% to 0.8630. The AUD/USD down 0.03% at 0.6607. EUR/JPY down 0.25% at 159.34. USD/JPY is down 0.08% at 147.37, USD/CNY is down 0.04% at 7.1772, and AUD/SEK is down 0.12% at 6.9037, at the time of writing.

Key Economic Events & Data Release Today:

(EUR) German GDP (QoQ) (Q4) Forecast –0.3%, Previous –0.1% at 04:00. (EUR) GDP (QoQ) (Q4) Forecast –0.1%, Previous –0.1% at 05:00. (USD) CB Consumer Confidence (Jan) Forecast 115.0, Previous 110.7 at 10:00. (JPY) Industrial Production (MoM) (Dec) Forecast 2.4%, Previous-0.9% at 18:50. (AUD) CPI (QoQ) (Q4) Forecast 0.8%, Previous 1.2% at 19:30. (CNY) Manufacturing PMI (Jan) Forecast 49.3, Previous 49.0 at 20:30.