. Daily FX Analysis - USD strengthens, impacts major currency pairs.

Daily FX Analysis – USD strengthens, impacts major currency pairs.

Daily FX Analysis – USD strengthens, impacts major currency pairs.

15 Mar 2024

Introduction

EUR/USD struggles below 1.0900 amidst subdued markets, driven by a stronger US Dollar following robust US PPI inflation data. GBP/USD remains weak below 1.2750 as USD strength persists. NZD/USD tests key support at 0.6100, eyeing further downside. USD/CHF climbs near 0.8850 on bullish US sentiment ahead of US data.

Markets In Focus Today – EUR/USD

EUR/USD consolidates below 1.0900 amid quiet markets.

EUR/USD is trading on the back foot below 1.0900 in the early European session on Friday. A firmer US Dollar, following the hot US February PPI inflation data, keeps the pair undermined amid a risk-averse trading environment. ECB-speak and US data are awaited. EUR/USD came under heavy bearish pressure and closed below 1.0900 on Thursday. The pair stays relatively calm but struggles to gather recovery momentum early Friday. After the data from the US showed that producer inflation, as measured by the change in the Producer Price Index (PPI), climbed to 1.6% every year in February from 1% in January, the benchmark 10-year US Treasury bond yield surged higher, and provided a boost to the US Dollar (USD).

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.0896 | Negative Crossover | Bearish
  • MA 20 : 1.0874 | Positive Crossover | Bullish
  • MA 50 : 1.0857 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.0906 | Negative Crossover | Bearish
  • MA 20 : 1.0864 | Positive Crossover | Bullish
  • MA 50 : 1.0851 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 52.4011 | Buy Zone | Bullish

Stochastic   Oscillator : 0.81 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 1.0876 R2 : 1.0924
  • S1 : 1.0722 S2 : 1.0674

Overall Sentiment : Neutral Market Direction : Buy

Trade Suggestion : Limit Buy : 1.0856 | Take Profit : 1.0920 | Stop Loss : 1.0821

GBP/USD

GBP/USD stays weak below 1.2750, looks to US data for fresh impetus.

GBP/USD is trading below 1.2750, miring in one-week lows in early Europe on Friday. The pair is weighed down by fading June Fed rate cut expectations and a strong US Dollar, in the wake of hot US PPI data. Focus shifts to more top-tier US economic data. The Pound Sterling tumbled against the US Dollar on Thursday after the US Department of Labor announced a rebound on inflation on the producer side that could dent the Federal Reserve’s easing policy. Therefore, the GBP/USD edges lower, trading at 1.2748, down 0.38%.Given the backdrop of the Fed’s expected decrease in interest rates in June, the GBP/USD should be favored in the near term. However, if US data continues to remain strong, further GBP/USD downside is seen.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.2755 | Negative Crossover | Bearish
  • MA 20 : 1.2725 | Positive Crossover | Bullish
  • MA 50 : 1.2681 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.2768 | Negative Crossover | Bearish
  • MA 20 : 1.2708 | Positive Crossover | Bullish
  • MA 50 : 1.2685 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 53.2545 | Buy Zone | Bullish

Stochastic   Oscillator : 1.09 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 1.2735 R2 : 1.2794
  • S1 : 1.2541 S2 : 1.2482

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Limit Buy: 1.2700 | Take Profit: 1.2774 | Stop Loss: 1.2654

NZD/USD

NZD/USD Price Tests the psychological support of 0.6100 level.

NZD/USD extended losses to the psychological support of 0.6100 on Friday. Technical analysis suggests a bearish momentum to revisit March’s low at 0.6068. The key resistance zone appears around the 23.6% Fibonacci retracement level of 0.6124 and the nine-day EMA at 0.6137.NZD/USD moves in the negative direction, extending its losses to near the psychological support of 0.6100 during the early European session on Friday. A decisive move below this level could exert downward pressure on the pair to navigate the area around March’s low at 0.6068 and a major support of 0.6050 level. A break below the latter could lead the NZD/USD pair to revisit February’s low at 0.6037, followed by the psychological support at 0.6000. Traders will closely monitor these levels for potential shifts in market sentiment.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.6134 | Negative Crossover | Bearish
  • MA 20 : 0.6135 | Negative Crossover | Bearish
  • MA 50 : 0.6135 | Negative Crossover | Bearish

Simple :

  • MA 10 : 0.6135 | Negative Crossover | Bearish
  • MA 20 : 0.6142 | Negative Crossover | Bearish
  • MA 50 : 0.6135 | Negative Crossover | Bearish

RSI (Relative Strength Index): 43.1431 | Neutral Zone | Neutral

Stochastic   Oscillator : 39.2316 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 0.6182 R2 : 0.6224
  • S1 : 0.6044 S2 : 0.6002

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 0.6086 | Take Profit: 0.6031 | Stop Loss: 0.6125

USD/CHF

USD/CHF climbs to near 0.8850 ahead of US Consumer Sentiment.

USD/CAD strengthens as market sentiment suggests the Fed could prolong higher interest rates. The uptrend in US Treasury yields has bolstered the US Dollar. SNB’s Jordan has voiced concerns that the CHF hurts Swiss businesses. USD/CHF appreciates for the third consecutive day on Friday, advancing to around 0.8850 during the Asian trading hours. The strong Producer Price Index (PPI) data from the United States (US), has contributed to the strength of the USD/CHF pair. Furthermore, the US Dollar Index (DXY) benefits from the hawkish sentiment surrounding the US Federal Reserve, contemplating maintaining its higher interest rates in response to persistent inflationary pressures. Additionally, US Treasury yields have risen for the past four consecutive sessions, lending further support to the US Dollar (USD), consequently, underpinning the USD/CHF pair.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.8809 | Positive Crossover | Bullish
  • MA 20 : 0.8796 | Positive Crossover | Bullish
  • MA 50 : 0.8756 | Positive Crossover | Bullish

Simple :

  • MA 10 : 0.8807 | Positive Crossover | Bullish
  • MA 20 : 0.8807 | Positive Crossover | Bullish
  • MA 50 : 0.8719 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.5589 | Neutral Zone | Neutral

Stochastic   Oscillator : 57.1721 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 0.8888 R2 : 0.8966
  • S1 : 0.8634 S2 : 0.8556

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Stop Sell: 0.8868 | Take Profit: 0.8970 | Stop Loss: 0.8805

Elsewhere In The Forex Market

AUD/USD down 0.37% to 0.6555, The USD/CAD up 0.01% to 1.3547. The EUR/GBP is down 0.01% at 0.8546. USD/JPY up 0.23% at 148.64. AUD/NZD is up 0.24% at 1.0758, The USD/CNY is up 0.04% at 7.1959, and the AUD/SEK is down 0.02% at 6.7956, at the time of writing.

Key Economic Events & Data Release Today:

(CAD) Housing Starts (Feb) Forecast 227.0K, Previous 223.6K at 08:15. (CAD) Wholesale Sales (MoM) (Jan) Forecast –0.6%, Previous 0.3% at 08:30.