. Daily FX Analysis - GBP/USD, EUR/USD Drop, USD/CHF, USD/JPY Steady

Daily FX Analysis – GBP/USD, EUR/USD Drop, USD/CHF, USD/JPY Steady

Daily FX Analysis – GBP/USD, EUR/USD Drop, USD/CHF, USD/JPY Steady

08 Nov 2023

Introduction:

In the dynamic world of forex trading, key currency pairs are experiencing notable shifts. GBP/USD faces renewed selling pressure as the US Dollar finds demand, while EUR/USD struggles below 1.0700 amidst cautious markets. USD/CHF maintains its position above 0.9000, benefiting from strong US Dollar gains, and USD/JPY extends modest gains, with traders eyeing Fed Chair Powell’s upcoming speech for direction. These currency pairs reflect the current market sentiment and economic factors at play.

GBP/USD:

GBP/USD drops back below 1.2300 as US Dollar finds demand.

The GBP/USD pair is facing renewed selling pressure, trading below the 1.2300 level during European trading on Wednesday. The US Dollar appears to be regaining momentum as investors become cautious ahead of speeches from BoE Governor Bailey and Fed Chair Powell.

GBP/USD faced selling pressure on Tuesday, falling to the 1.2300 level during European trading hours. The pair’s technical indicators suggest a continued downward trend. In the absence of significant economic data releases, market sentiment could influence GBP/USD movements in the latter part of the day.

Earlier today, data from the UK showed that Halifax House Prices rose by 1.1% on a monthly basis in October. However, this news did not cause a significant reaction in the market.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.2287 | Negative Crossover | Bearish
  • MA 20: 1.2260 | Positive Crossover | Bullish
  • MA 50: 1.2222 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.2292 | Negative Crossover | Bearish
  • MA 20: 1.2246 | Positive Crossover | Bullish
  • MA 50: 1.2190| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.05| Buy Zone | Bullish

Stochastic Oscillator: 51.3| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 1.2273| R2: 1.2459
  • S1: 1.2101| S2: 1.1949

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.2318 | Take Profit: 1.2459 | Stop Loss: 1.2219

EUR/USD:

EUR/USD struggles below 1.0700 amid cautious markets ahead of Powell.

The EUR/USD pair is struggling to gain ground, trading below the 1.0700 level as European trading gets underway on Wednesday. Cautious market sentiment and rising US Treasury bond yields are supporting a modest uptick in the US Dollar, putting downward pressure on the EUR/USD pair.

The EUR/USD pair is showing no clear direction on Wednesday, remaining confined within a tight range around the 1.0700 level during Asian trading hours.

Despite the recent decline in US Treasury bond yields and the ongoing rally in US stocks, the safe-haven US Dollar has been unable to maintain its gains from this week’s rebound from its lowest level since September 20. This, in turn, has been a key factor supporting the EUR/USD pair.

Investors are keenly awaiting Fed Chair Powell’s speech for further insights into monetary policy.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.0686| Negative Crossover | Bearish
  • MA 20: 1.0661| Positive Crossover | Bullish
  • MA 50: 1.0624 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.0687 | Negative Crossover | Bearish
  • MA 20: 1.0651| Positive Crossover | Bullish
  • MA 50: 1.0608 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.35| Buy Zone | Bullish

Stochastic Oscillator: 67| Buy zone | Negative

Resistance And Support Levels:

  • R1: 1.0680| R2: 1.0797
  • S1: 1.0580| S2: 1.0478

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.0706| Take Profit: 1.0797 | Stop Loss: 1.0643

USD/CHF:

USD/CHF maintains a position above 0.9000 on the strong US Dollar.

USD/CHF consolidates after gains spurred by higher US bond yields. Improved market sentiment dampens demand for the Swiss Franc (CHF). Minneapolis Fed President Neel Kashkari’s comments further lift the US Dollar.

The USD/CHF pair recovered from recent losses, rising to around 0.9020 during the European session on Wednesday. This upward movement is driven by a rebound in the US Dollar (USD), which is benefiting from improved US Treasury yields.

Investors are holding their breath for Fed Chairman Jerome Powell’s address at a conference in Washington, D.C., organized by the Division of Research and Statistics, eager for any clues about the future path of interest rates.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.9008 | Positive Crossover | Bullish
  • MA 20: 0.9011| Positive Crossover | Bullish
  • MA 50: 0.9012 | Positive Crossover | Bullish

Simple:

  • MA 5: 0.9007 | Positive Crossover | Bullish
  • MA 20: 0.9027 | Negative Crossover | Bearish
  • MA 50: 0.8992| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.34| Buying Zone| Bullish

Stochastic Oscillator: 40.01 |Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 0.9020| R2: 0.9116
  • S1: 0.8946 | S2: 0.8856

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 0.9044 | Take Profit: 0.9116 | Stop Loss: 0.9001

USD/JPY:

USD/JPY sticks to modest gains around the mid-150.00s look to Fed`s Powell.

USD/JPY extended its gains for the third consecutive day, but buying momentum has stalled. Traders are cautious ahead of Fed Chair Powell’s speech, hoping for fresh direction. The pair’s technical indicators suggest further appreciation is possible.

The USD/JPY pair maintained its positive momentum for the third consecutive day on Wednesday, hovering around the mid-150.00s, just shy of the weekly high reached yesterday.

The Japanese Yen (JPY) remains under pressure following the Bank of Japan’s (BoJ) adoption of a more dovish monetary policy stance. This shift has created a favorable environment for the USD/JPY pair, allowing it to advance.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 150.48 | Positive Crossover | Bullish
  • MA 20: 150.24| Positive Crossover | Bullish
  • MA 50: 149.99| Positive Crossover | Bullish

Simple:

  • MA 5: 150.50 | Positive Crossover | Bullish
  • MA 20: 150.38| Positive Crossover | Bullish
  • MA 50: 150.05| Positive Crossover | Bullish

RSI (Relative Strength Index): 57.19| Buying Zone | Bullish

Stochastic Oscillator: 70.39| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 150.73 | R2: 151.93
  • S1: 149.41 | S2: 148.32

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 150.95| Take Profit: 151.93 | Stop Loss: 150.39.

Elsewhere in the Forex Market

NZD/USD up 0.06% to 0.5938. The USD/CAD up 0.07% to 1.3776. The EUR/GBP up 0.3% at 0.8701. AUD/USD up 0.06% at 0.6439, EUR/JPY up 0.03% at 160.83, The USD/CNY up 0.00% at 7.2790, AUD/SEK up 0.36% at 7.0584, at the time of writing.

Key Economic Events & Data Release Today:

(AUD) Building Approvals (MoM) Actual –4.6%, Forecast –4.6%, Previous 7.2% at 06:00.

(EUR) German CPI (MoM) (Oct) Actual 0.0%, Forecast 0.0%, Previous 0.3% at 12:30.

(GBP) BoE Gov Bailey Speaks at 15:00

(EUR) Retail Sales (MoM) (Sep) Forecast –0.2%, Previous –1.2% at 15:30.

(USD) Fed Chair Powell Speaks at 19:45.