Introduction:

In the world of currency markets, the GBP/USD pair finds itself in a tight range around 1.2490, with all eyes on upcoming US economic data. Meanwhile, the EUR/USD is holding steady below 1.0750 as traders await the ECB’s decision and monitor US Retail Sales figures. In the AUD/USD arena, strong Australian jobs data is bolstering the pair above 0.6450, but uncertainty prevails ahead of key US data releases. Lastly, the USD/JPY is grappling with challenges as it hovers near 147.00, influenced by factors such as the BoJ’s monetary policy and the Fed’s rate-hike trajectory.

GBP/USD:

GBP/USD fluctuates within a small range of 1.2490, with attention on US data.

Throughout the early Asian session on Wednesday, the GBP/USD pair maintained its stability in a constrained range of around 1.2490. Before the US economic data is announced, the major pair continues to be constrained by the 1.2500 level. The GBP/USD pair experienced fresh multi-month lows during the early European session and continues to experience some selling pressure for the second straight day. The negative results, which reveal that the UK economy fell at the fastest pace in seven months, undercut the British Pound (GBP). The UK’s Gross Domestic Product (GDP) shrank more than anticipated in July, by 0.5%, according to the Office for National Statistics, raising concerns about a potential recession and showing that the UK economy is losing steam because of a steep increase in borrowing prices. This confirms rumors that the Bank of England (BoE) is reaching the conclusion of its rate-hiking cycle and comes on top of indications that the UK labor market is cooling.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1.2494 | Positive Crossover | Bullish
• MA 20: 1.2513 | Negative Crossover | Bearish
• MA 50: 1.2573 | Negative Crossover | Bearish

Simple:

• MA 5: 1.2429 | Positive Crossover | Bullish
• MA 20: 1.2497 | Negative Crossover | Bearish
• MA 50: 1.2581 | Negative Crossover | Bearish

RSI (Relative Strength Index): 43.75 | Neutral Zone | Neutral

Stochastic Oscillator: 91.19 | Buy Zone | Neutral

Resistance And Support Levels:

• R1: 1.2558 | R2: 1.2674
• S1: 1.2458 | S2: 1.2339

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:

• Stop Sell: 1.2422 | Take Profit: 1.2339 | Stop Loss: 1.2481

EUR/USD:

With attention to the ECB decision, the EUR/USD is consolidating below 1.0750.

The Thursday morning Asian session bounce below 1.0750 in the EUR/USD is being held. Ahead of the crucial ECB policy announcements, traders avoid making new wagers on the euro. Also watched are US Retail Sales figures. The publication of US consumer inflation statistics had no impact on the EUR/USD, which is still trading in a well-known range. The 1.0700 zone offers support, and upside momentum is still restrained. The upcoming European Central Bank (ECB) meeting will be the center of attention because there is still no agreement on the course of action, making it a potentially volatile event.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1.0743 | Positive Crossover | Bullish
• MA 20: 1.0744 | Positive Crossover | Bullish
• MA 50: 1.0786 | Negative Crossover | Bearish

Simple:

• MA 5: 1.0744 | Positive Crossover | Bullish
• MA 20: 1.0727 | Positive Crossover | Bullish
• MA 50: 1.0786 | Negative Crossover | Bearish

RSI (Relative Strength Index): 49.12 | Buy Zone | Positive

Stochastic Oscillator: 89.36 | Buying Zone | Neutral

Resistance And Support Levels:

• R1: 1.0764 | R2: 1.0860
• S1: 1.0692 | S2: 1.0633

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:

• Stop Buy: 1.0790 | Take Profit: 1.0860 | Stop Loss: 1.0747

AUD/USD:

After strong Australian jobs statistics, AUD/USD tests 0.6450.

Following a knee-jerk reaction to the positive Australian labor market report, which revealed a significant job gain of 64.9K in August, the AUD/USD is maintaining gains over 0.6400. The upside seems elusive as markets continue to be risk apprehensive ahead of new US data. Australia’s economy lost 14,600 jobs in July. In August, a rebound of about 23,000 employment is anticipated. It is anticipated that the unemployment rate will stay at 3.7%. The Australian Dollar may become volatile because of the figures, which will be widely scrutinized. Even a positive report is unlikely to convince the Reserve Bank of Australia (RBA) to restart its cycle of rate increases. On Thursday, relevant US data is due, which could affect the mood of the market. Additionally, the Producer Price Index (PPI), Jobless Claims, and Retail Sales provide data on employment, consumer behavior, and inflation.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 0.6429 | Positive Crossover | Bullish
• MA 20: 0.6419 | Positive Crossover | Bullish
• MA 50: 0.6434 | Positive Crossover | Bullish

Simple:

• MA 5: 0.6423 | Positive Crossover | Bullish
• MA 20: 0.6405 | Positive Crossover | Bullish
• MA 50: 0.6433 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.57 | Buying Zone | Bullish

Stochastic Oscillator: 92.37 | Buy Zone | Positive

Resistance And Support Levels:

• R1: 0.6455 | R2: 0.6520
• S1: 0.6381 | S2: 0.6300

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:

• Stop Buy: 0.6470 | Take Profit: 0.6520 | Stop Loss: 0.6437

USD/JPY:

USD/JPY remains around its daily low as bears flirt around with 200-hour SMA support near the 147.00 level.

On Thursday, the USD/JPY encountered a new supply and is under pressure from several sources. The JPY is supported by bets that the BoJ will stop its ultra-easy monetary policy, which is negative for the pair. Selling of the USD is prompted by uncertainty over the Fed’s rate-hike trajectory, which adds to the fall. In the first part of Wednesday’s trading session, the USD/JPY pair picks up some momentum for the second straight day and rises to a new weekly high. However, as traders eagerly await the US consumer inflation numbers before placing new directional bets, spot prices have remained below the mid-147.00s during the early European session. The crucial US CPI report, whose release is planned for later in the early North American session, will have a significant impact on the Federal Reserve’s (Fed) stance on policy. In turn, this will fuel USD demand and aid traders in forecasting the USD/JPY pair’s short-term course.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 147.17 | Negative Crossover | Bearish
• MA 20: 147.02 | Positive Crossover | Bullish
• MA 50: 146.46 | Positive Crossover | Bullish

Simple:

• MA 5: 147.28 | Negative Crossover | Bearish
• MA 20: 147.16 | Negative Crossover | Bearish
• MA 50: 146.51 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.25 | Buy Zone | Negative

Stochastic Oscillator: 52.02 | Buy Zone | Positive

Resistance And Support Levels:

• R1: 147.41 | R2: 148.89
• S1: 146.54 | S2: 145.02

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:

• Stop Buy: 147.70 | Take Profit: 148.89 | Stop Loss: 147.01

Elsewhere in the Forex Market:

• NZD/USD up 0.19% to 0.5920.
• The EUR/JPY down 0.03% to 158.11.
• The USDCHF down 0.11% at 0.8921.
• USD/CAD down 0.11% at 1.3533,
• EUR/GBP up 0.08% at 0.8587.
• The USD/CNY up 0.05% at 7.2736,
• AUD/SEK up 0.13% at 7.1557, at the time of writing.

Key Economic Events & Data Release Today:

• (AUD) Employment Change (Aug) Actual 64.9K, Forecast 23.0K, Previous –14.6K at 07:00.
• (EUR) ECB Interest Rate Decision (Sep) Forecast 4.25%, Previous 4.25% at 17:45.
• (EUR) ECB Monetary Policy Statement at 17:45.
• (USD) PPI (MoM) (Aug) Forecast 0.4%, Previous 0.3% at 18:00.
• (USD) Initial Jobless Claims Forecast 225K, Previous 216K at 18:00.
• (USD) Retail Sales (MoM) (Aug) Forecast 0.2%, Previous 0.7% at 18:00.