. Daily FX Analysis - GBP/USD Peaks, EUR/USD Volatile, USD/JPY Tense, AUD/USD Comeback.

Daily FX Analysis – GBP/USD Peaks, EUR/USD Volatile, USD/JPY Tense, AUD/USD Comeback.

Daily FX Analysis – GBP/USD Peaks, EUR/USD Volatile, USD/JPY Tense, AUD/USD Comeback.

12 Jan 2024

Introduction

In the currency market, GBP/USD clings to gains above 1.2750 post-UK data, with real GDP expanding by 0.3% in November. The pair consolidates as investors await the crucial US inflation report for December. EUR/USD consolidates below 1.1000 amid a weakened US Dollar and geopolitical tensions, while USD/JPY struggles to capitalize on gains amid Middle East tensions. The Australian Dollar (AUD) retraces losses, nearing 0.6700, following mixed Chinese data. The focus remains on the upcoming US Producer Price Index (PPI) data, influencing currency movements in the global market.

Markets In Focus Today – GBP/USD

GBP/USD clings to gains above 1.2750 after UK data.

GBP/USD trades in a tight channel above 1.2750 on Friday. The data from the UK showed that monthly real GDP expanded by 0.3% in November, while Industrial Production contracted by 0.1% every year. Market focus shifts to US PPI data. GBP/USD went into a consolidation phase above 1.2750 early Thursday after closing in positive territory on Wednesday. Although the upbeat market mood helps the pair hold its ground in the European session, investors could refrain from taking large positions ahead of the highly-anticipated US inflation report for December. Investors are likely to react to the monthly Core CPI reading since it’s not distorted by base effects and strips volatile food and energy prices.

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): 59.04 | Buy Zone | Bullish

Stochastic   Oscillator : 68.20 | 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: 1.2729 | Take Profit: 1.2830 | Stop Loss: 1.2672

EUR/USD

EUR/USD consolidates gains below 1.1000 amid subdued US dollars.

EUR/USD is consolidating the latest uptick but stays below 1.1000 early Friday. The pair benefits from a renewed US Dollar weakness, induced by the dovish Fed expectations. Escalating geopolitical tensions cap the pair’s upside. US data is next in focus. After spiking to 1.1000 on Thursday, EUR/USD made a sharp U-turn and dropped below 1.0950. With the US Dollar (USD) struggling to find demand in the late American session, the pair regained its traction and closed the day flat. The pair holds steady above 1.0950 early Friday as markets await producer inflation data from the US.

Technical   Overview With Chart :

Moving Averages :

Exponential :

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

Simple :

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

RSI (Relative Strength Index): 54.41 | Buy Zone | Bullish

Stochastic   Oscillator : 37.22 | Sell Zone | Neutral

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: 1.0971 | Take Profit: 1.1069 | Stop Loss: 1.0914

USD/JPY

Japanese Yen struggles to capitalize on its intraday gains against the USD; the US PPI is in focus.

The Japanese Yen is seen extending the overnight recovery against the USD from a one-month low. Escalating Middle East tensions benefit the safe-haven JPY, though dovish BoJ hopes might cap gains.. The Japanese Yen (JPY) strengthened for the second straight day against its American counterpart on Friday and recovered further from a one-month low, albeit lacking follow-through. Expectations that a devastating New Year’s Day earthquake in Japan, falling rates of inflation in Tokyo, and weak wage growth data could delay the Bank of Japan’s (BoJ) plan to pivot away from its ultra-dovish stance cap gains for the JPY.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 144.30 | Positive Crossover | Bullish
  • MA 20 : 144.07 | Positive Crossover | Bullish
  • MA 50 : 145.24 | Negative Crossover | Bearish

Simple :

  • MA 10 : 144.01 | Positive Crossover | Bullish
  • MA 20 : 143.18 | Positive Crossover | Bullish
  • MA 50 : 146.08 | Negative Crossover | Bearish

RSI (Relative Strength Index): 54.01 | Buy Zone | Bullish

Stochastic   Oscillator : 84.79 | 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: 144.72 | Take Profit: 146.45 | Stop Loss: 143.72

AUD/USD

Australian Dollar trades near a psychological level amid a stable US Dollar, US PPI eyed.

The Australian Dollar gained strength after the release of the mixed Chinese data. Australian currency retraces its recent losses on risk-on mood. The Australian Dollar (AUD) made a modest upward move, nearing the psychological level at 0.6700 on Friday following a retracement after registering losses in the previous session. The Australian Dollar (AUD) made a modest upward move, nearing the psychological level at 0.6700 on Friday following a retracement after registering losses in the previous session.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.67 | Negative Crossover | Bearish
  • MA 20 : 0.67 | Negative Crossover | Bearish
  • MA 50 : 0.66 | Positive Crossover | Bullish

Simple :

  • MA 10 : 0.67 | Negative Crossover | Bearish
  • MA 20 : 0.68 | Negative Crossover | Bearish
  • MA 50 : 0.66 | Positive Crossover | Bullish

RSI (Relative Strength Index): 50.52 | Buy Zone | Bullish

Stochastic   Oscillator : 24.47 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 0.69 R2 : 0.69
  • S1 : 0.66 S2 : 0.65

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 0.6674 | Take Profit: 0.6779 | Stop Loss: 0.6613

Elsewhere In The Forex Market

EUR/GBP down 0.08% to 0.8590. The NZD/USD up 0.02% to 0.6245. The USD/CHF is down 0.01% at 0.8518. USD/CAD is down 0.29% at 1.3356. EUR/JPY is down 0.14% at 159.09, The USD/CNY is down 0.06% at 7.1628, AUD/SEK is up 0.06% at 6.8647, at the time of writing.

Key Economic Events & Data Release Today:

(GBP) Manufacturing Production (MoM) (Nov) Actual 0.4%, Forecast 0.3%, Previous –1.1% at 02:00. (GDP) GDP (MoM) (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00. (GBP) GDP (YoY (Nov) Actual 0.2%, Forecast 0.2%, Previous 0.3% at 02:00. (GBP) Industrial Production (MoM) (Nov) Actual 0.3%, Forecast 0.3%, Previous –0.8% at 02:00.