. Daily FX Analysis - GBP/USD Soars, EUR/USD at 1.0700, USD/JPY Holds 151.70.

Daily FX Analysis – GBP/USD Soars, EUR/USD at 1.0700, USD/JPY Holds 151.70.

Daily FX Analysis – GBP/USD Soars, EUR/USD at 1.0700, USD/JPY Holds 151.70.

14 Nov 2023

Introduction:

 “In the financial markets today, various currency pairs are in focus. GBP/USD climbs to 1.2300 on the heels of favorable UK employment data, while EUR/USD grapples with 1.0700 amid cautious anticipation of crucial Eurozone and US releases. AUD/USD retraces gains as the US Dollar eyes recovery and USD/JPY holds firm near yearly highs at 151.70, anticipating key US data.

GBP/USD:

GBP/USD rises towards 1.2300 after UK employment data.

During the early European morning on Tuesday, the GBP/USD experienced a slight upward movement, reaching around 1.2300. UK data indicated that the ILO Unemployment Rate remained stable at 4.2% for the three months ending in September.

The GBP/USD gathered momentum and moved closer to 1.2250 during the European session on Monday, following a period of fluctuation in a narrow range slightly above 1.2200 during the Asian session.

Meanwhile, futures for US stock indices remain in the red throughout European trading hours. If safe-haven preferences become prominent in the financial markets in the latter part of the day, the GBP/USD might face challenges in maintaining its position.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.2263 | Positive Crossover | Bullish
  • MA 20: 1.2254 | Positive Crossover | Bullish
  • MA 50: 1.2232 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.2259 | Positive Crossover | Bullish
  • MA 20: 1.2278 | Positive Crossover | Bullish
  • MA 50: 1.2212| Positive Crossover | Bullish

RSI (Relative Strength Index): 56.31| Buy Zone | Bullish

Stochastic Oscillator: 81.62| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 1.2296| R2: 1.2429
  • S1: 1.2198| S2: 1.2064

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.2331 | Take Profit: 1.2429 | Stop Loss: 1.2263

EUR/USD:

EUR/USD battles 1.0700 ahead of key EU, US data.

EUR/USD is contending with the 1.0700 level, without a distinct directional drive in the early European trading on Tuesday. Traders are exercising caution in anticipation of crucial data releases from both the Eurozone and the US.

On Monday, the EUR/USD experienced an ascent, receiving support around the 1.0560 region. Attention in the market now pivots towards forthcoming economic data releases from both the US and the Euro area.

Eurostat is set to unveil employment and growth figures for the third quarter, with expectations pointing toward a 0.1% contraction in the economy. Furthermore, the results of the ZEW survey are anticipated to be disclosed.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.0690| Positive Crossover | Bullish
  • MA 20: 1.0680| Positive Crossover | Bullish
  • MA 50: 1.0649 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.0689 | Positive Crossover | Bullish
  • MA 20: 1.0694 | Positive Crossover | Bullish
  • MA 50: 1.0638 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.11| Buy Zone | Bullish

Stochastic Oscillator: 59.06| Buy zone | Positive

Resistance And Support Levels:

  • R1: 1.0703| R2: 1.0793
  • S1: 1.0639| S2: 1.0569

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.0734| Take Profit: 1.0793 | Stop Loss: 1.0694

AUD/USD:

AUD/USD retraces recent gains ahead of US inflation data.

The Australian Dollar is facing downward pressure as the US Dollar seeks to regain lost ground. Consumer sentiment in Australia saw a 2.6% decline in November, contrasting with the previous growth of 2.9%. The potential recovery in US bond yields could contribute to a strengthening of the Greenback.

On Tuesday, the Australian Dollar (AUD) is on a downward trend, while the US Dollar (USD) strives to recuperate from recent losses, buoyed by a rebound in US Treasury yields.

On Tuesday, Australia’s Westpac Consumer Confidence report unveiled a significant decline in consumer sentiment for November, posing a potential challenge for the Australian Dollar (AUD).

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.6367 | Negative Crossover | Bearish
  • MA 20: 0.6387| Negative Crossover | Bearish
  • MA 50: 0.6386 | Negative Crossover | Bearish

Simple:

  • MA 5: 0.6366 | Negative Crossover | Bearish
  • MA 20: 0.6407 | Negative Crossover | Bearish
  • MA 50: 0.6381| Negative Crossover | Bearish

RSI (Relative Strength Index): 42.85| Neutral Zone| Neutral

Stochastic Oscillator: 26.28 |Selling Zone | Neutral

Resistance And Support Levels:

  • R1: 0.6424| R2: 0.6490
  • S1: 0.6356 | S2: 0.6284

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 0.6337 | Take Profit: 0.6284 | Stop Loss: 0.6379

USD/JPY:

USD/JPY holds ground near yearly highs, trading around 151.70.

USD/JPY hovers in a holding pattern, maintaining its position near annual highs in anticipation of upcoming US data. US Treasury Secretary Yellen expresses disagreement with Moody’s recent decision to downgrade its outlook on US debt.

In the Asian session on Tuesday, the USD/JPY lingers around 151.70. The pair maintains its position at annual highs, and there is a possibility of surpassing these levels if the US Dollar (USD) effectively halts its recent decline.

On Wednesday, investors will turn their attention to the initial Gross Domestic Product (GDP) figures for the third quarter in Japan to obtain updated insights into the economic situation in the country.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 151.64 | Positive Crossover | Bullish
  • MA 20: 151.13| Positive Crossover | Bullish
  • MA 50: 150.55| Positive Crossover | Bullish

Simple:

  • MA 5: 151.70 | Negative Crossover | Bearish
  • MA 20: 150.95| Positive Crossover | Bullish
  • MA 50: 150.45| Positive Crossover | Bullish

RSI (Relative Strength Index): 65.02| Buying Zone | Bullish

Stochastic Oscillator: 82.59| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 151.80 | R2: 153.00
  • S1: 150.45 | S2: 148.99

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 150.71| Take Profit: 151.85 | Stop Loss: 149.90.

Elsewhere in the Forex Market

NZD/USD down 0.16% to 0.5866. The USD/CAD up 0.11% to 1.3821. The EUR/GBP down 0.01% at 0.8711. USD/CHF up 0.01% at 0.9016, EUR/JPY up 0.03% at 162.34, The USD/CNY up 0.08% at 7.2943, AUD/SEK down 0.08% at 6.9068, at the time of writing.

Key Economic Events & Data Release Today:

(GBP) Average Earning Index+ Bonus (Sep) Actual 7.9%, Forecast 7.4%, Previous 8.1% at 12:30.

(EUR) GDP (YoY) (Q3) Forecast 0.1%, Previous 0.5% at 15:30

(USD) CPI (MoM) (Oct) Forecast 0.1%, Previous 0.4% at 19:00

(USD) CPI (YoY) (Oct) Forecast 3.3%, Previous 0.3% at 19:00

(USD) Core CPI (MoM) (Oct) Forecast 0.3%, Previous 0.3% at 19:00