. Daily FX Analysis - Global Currencies React, USD Falls, Euro Soars

Daily FX Analysis – Global Currencies React, USD Falls, Euro Soars.

Daily FX Analysis – Global Currencies React, USD Falls, Euro Soars.

27 Nov 2023

Introduction:

In the dynamic forex market, the EUR/USD maintains its upward trajectory, nearing 1.0950 amid a weakening US dollar. Meanwhile, GBP/USD sees positive movements driven by hawkish Bank of England comments. The Australian Dollar, although facing challenges, finds support near 0.6590, with the NZD/USD losing momentum ahead of the RBNZ rate decision. Notably, investors are hopeful for a Chinese stimulus plan to bolster the property sector.

EUR/USD:

With the US dollar falling, EUR/USD is still rising and is currently trading close to 1.0950.

The winning trend persists for EUR/USD as it hovers just below the psychological threshold of 1.0950 in the Asian session on Monday. The Euro is finding support in the upward direction, possibly influenced by the relative weakness of the USD.

EUR/USD concluded the second consecutive day in the red on Thursday but exhibited stability above 1.0900 early on Friday. S&P Global is set to unveil Manufacturing and Services PMI data for the US later in the day, although limited trading activity on Black Friday might constrain the pair’s movements leading into the weekend.

The anticipated outlook for November suggests a modest expansion in business activity within the private sector in the United States.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.0937 | Positive Crossover | Bullish
  • MA 20: 1.0901 | Positive Crossover | Bullish
  • MA 50: 1.0821 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.0934 | Positive Crossover | Bullish
  • MA 20: 1.0914 | Positive Crossover | Bullish
  • MA 50: 1.0807| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.54| Buy Zone | Bullish

Stochastic Oscillator: 53.57| Buying Zone | Positive

Resistance And Support Levels:

  • R1: 1.0963| R2: 1.1074
  • S1: 1.0891| S2: 1.0841

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.0991 | Take Profit: 1.1074 | Stop Loss: 1.0946

GBP/USD:

In the midst of hawkish BoE comments, GBP/USD is trading positively above at 1. 2600.

GBP/USD is advancing further, propelled by the hawkish stance expressed by Bank of England (BoE) officials.

During Monday’s Asian session, GBP/USD is hovering around 1.2600, striving to prolong its upward movement for the third successive session. The pair is being bolstered by the optimistic stance of Bank of England (BoE) officials.

The U.K. lacks any high-impact data releases this week, leading market participants to likely concentrate on speeches from Bank of England (BoE) officials.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 1.2591| Positive Crossover | Bullish
  • MA 20: 1.2522| Positive Crossover | Bullish
  • MA 50: 1.2421 | Positive Crossover | Bullish

Simple:

  • MA 5: 1.2589 | Positive Crossover | Bullish
  • MA 20: 1.2514 | Positive Crossover | Bullish
  • MA 50: 1.2401 | Positive Crossover | Bullish

RSI (Relative Strength Index): 74.58| Buy Zone | Bullish

Stochastic Oscillator: 100.00| Buy zone | Positive

Resistance And Support Levels:

  • R1: 1.2621| R2: 1.2781
  • S1: 1.2503| S2: 1.2389

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1.2648| Take Profit: 1.2781 | Stop Loss: 1.2564

AUD/USD:

Australian Dollar lowers daily gains in the face of weaker China Industrial Profit Year-to-Date.

The Australian Dollar may experience an uptick in response to positive sentiment. Australia’s currency is testing three-month highs, approaching the 0.6600 level. Support for the Aussie pair is reinforced by remarks from RBA Governor Bullock.

On Monday, the Australian Dollar (AUD) faced challenges in extending its three-session winning streak. The AUD/USD pair remained below the three-month peak of 0.6590, with its upward momentum supported by the prevailing negative sentiment surrounding the US Dollar (USD).

Moreover, support for the Australian Dollar pair is being reinforced by recent hawkish remarks made by Michele Bullock, the Governor of the Reserve Bank of Australia (RBA).

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.6574 | Positive Crossover | Bullish
  • MA 20: 0.6545| Positive Crossover | Bullish
  • MA 50: 0.6492 | Positive Crossover | Bullish

Simple:

  • MA 5: 0.6575 | Positive Crossover | Bullish
  • MA 20: 0.6550 | Positive Crossover | Bullish
  • MA 50: 0.6482| Positive Crossover | Bullish

RSI (Relative Strength Index): 64.58| Buying Zone| Bullish

Stochastic Oscillator: 56.62 |Buying Zone | Neutral

Resistance And Support Levels:

  • R1: 0.6594| R2: 0.6688
  • S1: 0.6529 | S2: 0.6449

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 0.6613 | Take Profit: 0.6688 | Stop Loss: 0.6568

NZD/USD:

In the mid-06000s, the NZD/USD pair loses momentum while investors await the RBNZ rate decision.

On Monday, the momentum of NZD/USD weakened above the mid-0.6000s. The Reserve Bank of New Zealand (RBNZ) is expected to maintain the Official Cash Rate (OCR) at 5.50% come Wednesday.

During Monday’s Asian trading hours, the two-day winning streak of the NZD/USD pair comes to an end. Investors are eagerly anticipating the upcoming monetary policy meeting of the Reserve Bank of New Zealand (RBNZ) scheduled for Wednesday.

Additionally, investors’ confidence has been uplifted by the expectation of a stimulus plan from China aimed at supporting the property sector.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 0.6067 | Positive Crossover | Bullish
  • MA 20: 0.6037| Positive Crossover | Bullish
  • MA 50: 0.5989| Positive Crossover | Bullish

Simple:

  • MA 5: 0.6077 | Positive Crossover | Bullish
  • MA 20: 0.6037| Positive Crossover | Bullish
  • MA 50: 0.5980| Positive Crossover | Bullish

RSI (Relative Strength Index): 62.58| Buying Zone | Bullish

Stochastic Oscillator: 61.82| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 0.6083 | R2: 0.6177
  • S1: 0.6003 | S2: 0.5957

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 0.6109| Take Profit: 0.6177 | Stop Loss: 0.6067.

Elsewhere in the Forex Market

USD/CHF up 0.07% to 0.8818. The USD/CAD up 0.11% to 1.3651. The EUR/GBP up 0.13% at 0.8682. USD/JPY down 0.22% at 149.08, EUR/JPY down 0.14% at 163.18, The USD/CNY up 0.06% at 7.1529, AUD/SEK up 0.08% at 6.8810, at the time of writing.

Key Economic Events & Data Release Today:

(USD) Building Permits Forecast 1.487M, Previous 1.471M at 18:30.

(EUR) ECB President Lagarde Speaks at 19:30.

(USD) New Home Sales (Oct) Forecast 721K, Previous 759K at 20:30