Best Forex Technical Analysis By Capital Street FX

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Daily FX Analysis – GBP falls, AUD holds, JPY rises, USD/CHF adjusts.

Introduction

"The GBP/USD faces a decline below 1.2600 following soft UK inflation data, amplifying the pressure on Pound Sterling. Meanwhile, robust US economic indicators suggest a prolonged period of higher interest rates, driving the pair to 1.2598. The Australian Dollar also grapples with US Dollar strength amid positive CPI numbers, while the Japanese Yen gains support from a shift in global risk sentiment and verbal intervention. USD/CHF, having reached an 11-week high, corrects slightly as investors anticipate continued US Dollar strength amid inflation concerns."

Markets In Focus Today – GBP/USD

GBP/USD Slumps Below 1.2600 After Soft UK Inflation Data.

GBP/USD lost its traction and declined below 1.2600 in the European session on Wednesday. The data from the UK showed that the Consumer Price Index (CPI) declined by 0.6% every month in January and weighed heavily on Pound Sterling. The GBP/USD plunges below 1.2600 as strong economic data from the United States (US) suggests the Federal Reserve (Fed) would keep interest rates higher for longer. At the time of writing, the pair trades at 1.2598 after hitting a daily high of 1.2683. GBP/USD slid on hot US CPI data, traders await UK inflation figures.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.2618 | Negative Crossover | Bearish
• MA 20 : 1.2643 | Negative Crossover | Bearish
• MA 50 : 1.2634 | Negative Crossover | Bearish

Simple :

• MA 10 : 1.2616 | Negative Crossover | Bearish
• MA 20 : 1.2659 | Negative Crossover | Bearish
• MA 50 : 1.2673 | Negative Crossover | Bearish

RSI (Relative Strength Index): 41.0237 | Neutral Zone | Neutral

Stochastic Oscillator : 30.7950 | Sell Zone | Negative

Resistance And Support Levels :

• R1 : 1.2763 R2 : 1.2807
• S1 : 1.2618 S2 : 1.2574

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 1.2571 | Take Profit: 1.2494 | Stop Loss: 1.2629

AUD/USD

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Daily FX Analysis – Euro, Kiwi up, Pound down, Loonie recovers.

Introduction

EUR/USD remains near 1.0725, closely watching ECB President Lagarde's speech in the wake of mixed Fedspeak and the upcoming US Retail Sales report. The pair shows signs of balance recovery after a modest US dollar retracement led to gains. In other markets, NZD/USD sees slight gains, while GBP/USD faces pressure following UK GDP data. USD/CAD attempts to rebound, influenced by a subdued US dollar and the potential impact of declining WTI prices. The broader focus includes key economic indicators like the Philly Fed Manufacturing Index and weekly Initial Jobless Claims.

Markets In Focus Today – EUR/USD

EUR/USD Sticks To Lows Near 1.0725, Lagarde Eyed.

EUR/USD is holding lower ground while eyeing the 1.0700 mark in European trading on Thursday. The US Dollar struggles amid mixed Fedspeak, as traders await the US Retail Sales report for fresh policy hints. Ahead of that, ECB Lagarde's speech is eagerly awaited. The modest retracement in the US dollar (USD) triggered a decent bounce in risk-oriented assets on Wednesday, encouraging EUR/USD to regain some balance and leave the area of yearly lows in the sub-1.0700 zone. On the ECB's side, Vice President L. de Guindos remarked that although progress is being made, caution is warranted to avoid premature conclusions.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.0762 | Negative Crossover | Bearish
• MA 20 : 1.0799 | Negative Crossover | Bearish
• MA 50 : 1.0839 | Negative Crossover | Bearish

Simple :

• MA 10 : 1.0755 | Negative Crossover | Bearish
• MA 20 : 1.0806 | Negative Crossover | Bearish
• MA 50 : 1.0889 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.4419 | Sell Zone | Bearish

Stochastic Oscillator : 12.4185 | Sell Zone | Positive

Resistance And Support Levels :

• R1 : 1.0982 R2 : 1.1041
• S1 : 1.0790 S2 : 1.0731

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 1.0750 | Take Profit: 1.0667 | Stop Loss: 1.0804

NZD/USD

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Daily FX Analysis – GBP, EUR, AUD, USD/JPY challenges, insights.

Introduction

GBP/USD maintains stability around 1.2600 after UK retail sales data. Despite a 3.4% monthly increase in retail sales in the UK, Pound Sterling struggles to gain momentum. Meanwhile, EUR/USD faces bearish pressures near 1.0750, impacted by renewed US Dollar demand and dovish ECB comments. The US Dollar steadies after recent losses, influencing the Australian Dollar's attempt to move into positive territory. Japanese Yen faces challenges near daily lows against USD due to uncertainty about the Bank of Japan's policy shift and risk-on sentiment.

Markets In Focus Today – GBP/USD

GBP/USD Holds Steady Near 1.2600 After UK Data.

GBP/USD continues to fluctuate at around 1.2600 in the early European session on Friday. The data from the UK showed that Retail Sales rose 3.4% every month but failed to provide a boost to Pound Sterling. Focus shifts to US January PPI figures. The Pound Sterling (GBP) climbed during the North American session following a soft retail sales report that lifted the major from a crucial technical level. Consequently, the Greenback (USD) is on the defensive as the GBP/USD trades at 1.2586, up 0.17%, after jumping off a daily low of 1.2541. Pound Sterling edges high amid mixed US economic reports, BoE’s rate cut estimates.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.2608 | Negative Crossover | Bearish
• MA 20 : 1.2633 | Negative Crossover | Bearish
• MA 50 : 1.2630 | Negative Crossover | Bearish

Simple :

• MA 10 : 1.2596 | Negative Crossover | Bearish
• MA 20 : 1.2648 | Negative Crossover | Bearish
• MA 50 : 1.2674 | Negative Crossover | Bearish

RSI (Relative Strength Index): 43.0909 | Neutral Zone | Neutral

Stochastic Oscillator : 25.0329 | Sell Zone | Negative

Resistance And Support Levels :

• R1 : 1.2763 R2 : 1.2807
• S1 : 1.2618 S2 : 1.2574

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Buy: 1.2604 | Take Profit: 1.2537 | Stop Loss: 1.2650

EUR/USD

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[Tushar_CSFX72]

Daily FX Analysis – GBP/USD soars, others hold steady.

Introduction

GBP/USD inches above 1.2600 as the US Dollar weakens, driven by market sentiment anticipating delayed Fed rate cuts. With USD under pressure, GBP/USD consolidates gains. Meanwhile, EUR/USD maintains modest gains below 1.0800 in light trading, impacted by the US Dollar's decline. Australian Dollar consolidates after gains, supported by dovish Fed comments. USD/JPY retreats to near 150.00 amid improved Japanese Machinery Orders and a subdued US Dollar following Friday's volatile session. US markets observe a bank holiday on President's Day.

Markets In Focus Today – GBP/USD

GBP/USD Inches Higher Above 1.2600 On USD Weakness.

GBP/USD is consolidating gains above 1.2600 in early Europe on Monday. The US Dollar experiences downward pressure, influenced by market sentiment leaning towards the delayed Fed rate cuts. A US holiday-thinned trading is likely to extend. GBP/USD benefited from the renewed US Dollar (USD) weakness and snapped a three-day losing streak on Thursday. The pair, however, lost its recovery momentum after testing 1.2600 and edged lower in the early European session on Friday. The 10-year US Treasury bond yield continued to correct lower following the disappointing Retail Sales data from the US on Thursday and weighed on the USD. Meanwhile, Bank of England's Monetary Policy Committee (MPC) member Megan Greene reiterated on Thursday that the monetary policy will need to remain restrictive for some time, further supporting GBP/USD.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.2614 | Positive Crossover | Bullish
• MA 20 : 1.2633 | Negative Crossover | Bearish
• MA 50 : 1.2631 | Negative Crossover | Bearish

Simple :

• MA 10 : 1.2607 | Positive Crossover | Bullish
• MA 20 : 1.2644 | Negative Crossover | Bearish
• MA 50 : 1.2676 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.9409 | Buy Zone | Bullish

Stochastic Oscillator : 35.0461 | Sell Zone | Positive

Resistance And Support Levels :

• R1 : 1.2763 R2 : 1.2807
• S1 : 1.2618 S2 : 1.2574

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Stop Buy: 1.2632 | Take Profit: 1.2727 | Stop Loss: 1.2573

EUR/USD

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Daily FX Analysis – USD/CAD surges, EUR/USD nears support.

Introduction

In the currency markets, USD/CAD maintains its position above the 1.3500 level ahead of Canada's CPI data, buoyed by a stronger US Dollar. Meanwhile, EUR/USD retreats from its weekly high, eyeing support at 1.0750, and GBP/USD struggles below 1.2600 ahead of BoE Governor Bailey's testimony. NZD/USD trades flat amid the PBoC rate decision, influenced by cautious Fed rate cut expectations. The market anticipates potential volatility with upcoming economic data and central bank announcements.

Markets In Focus Today – USD/CAD

USD/CAD Holds Above The 1.3500 Mark Ahead Of Canadian CPI Data.

USD/CAD edges higher to 1.3506 amid the firmer USD. Investors trimmed their bets on rate cut expectations from the Fed as the US January PPI data came in hotter than estimated. Canada's January CPI report will be released on Tuesday, which is estimated to ease in January. The USD/CAD pair traded on a stronger note above the 1.3500 psychological mark during the Asian session on Tuesday. The uptick of the pair is bolstered by the stronger US Dollar (USD). The Canadian inflation data will be in the spotlight on Tuesday and could trigger volatility in the market ahead of the FOMC Minutes. At press time, USD/CAD is trading at 1.3506, gaining 0.12% on the day.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.3489 | Positive Crossover | Bullish
• MA 20 : 1.3473 | Positive Crossover | Bullish
• MA 50 : 1.3467 | Positive Crossover | Bullish

Simple :

• MA 10 : 1.3487 | Positive Crossover | Bullish
• MA 20 : 1.3471 | Positive Crossover | Bullish
• MA 50 : 1.3405 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.5737 | Buy Zone | Bullish

Stochastic Oscillator : 58.9418 | Buy Zone | Positive

Resistance And Support Levels :

• R1 : 1.3520 R2 : 1.3594
• S1 : 1.3281 S2 : 1.3207

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 1.3492 | Take Profit: 1.3573 | Stop Loss: 1.3442

EUR/USD

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[Tushar_CSFX72]

Daily FX Analysis – Forex market updates with expert analysis.

Introduction

The AUD/USD faces downward pressure around 0.6500 as the US Dollar stabilizes, influenced by mixed market sentiment and Australian economic data. The focus remains on China's NPC meeting and the Fed's Powell. Meanwhile, GBP/USD gains on the BoE Chief Economist's hawkish comments, and EUR/USD strengthens ahead of the ECB meeting. NZD/USD retreats near 0.6100, impacted by a stable US Dollar and a higher-than-expected trade deficit in New Zealand. Fed rate cut probabilities for March, May, and June are 5.0%, 26.8%, and 53.8%, respectively.

Markets In Focus Today – AUD/USD

AUD/USD Stays On The Defensive Toward 0.6500 As The US Dollar Stalls Decline.

AUD/USD is on the defensive toward 0.6500 in the Asian session on Monday. The pair is feeling the pull of gravity, as the US Dollar consolidates its previous losses. A mixed market mood and Australian economic data also weighed on the Aussie. China's NPC meeting and Fed's Powell are in focus. There is a mixed action in the global market as S&P 500 futures are down in the European session while risk-perceived currencies are performing better against the US Dollar. The US Dollar Index, which measures the US Dollar's value against six rival currencies, falls slightly to 104.00. In the June meeting, market expectations for rate cuts by the Fed remain firm as the annual core inflation data grew at the slowest pace of 2.8% in their years. However, the Federal Reserve (Fed) is still not ready to unwind the restrictive policy stance sooner as they need more confidence that inflation will return to the 2% target.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 0.6523 | Negative Crossover | Bearish
• MA 20 : 0.6533 | Negative Crossover | Bearish
• MA 50 : 0.6562 | Positive Crossover | Bullish

Simple :

• MA 10 : 0.6533 | Negative Crossover | Bearish
• MA 20 : 0.6521 | Negative Crossover | Bearish
• MA 50 : 0.6602 | Positive Crossover | Bullish

RSI (Relative Strength Index): 45.3393 | Neutral Zone | Neutral

Stochastic Oscillator : 45.4502 | Buy Zone | Positive

Resistance And Support Levels :

• R1 : 0.6580 R2 : 0.6620
• S1 : 0.6453 S2 : 0.6413

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 0.6534 | Take Profit: 0.6465 | Stop Loss: 0.6581

GBP/USD

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Daily FX Analysis – Explore forex as major pairs rally, and await data.

Introduction

EUR/USD climbs above 1.0850 in the European session amid a cautiously optimistic market sentiment ahead of Fed Chair Powell's testimony and US jobs data. Investors await the EU Retail Sales report as they tread carefully before key macroeconomic events. GBP/USD regains momentum above 1.2700, anticipating UK Chancellor Jeremy Hunt's Budget Report, while USD/CAD eyes the BoC rate decision. The Australian Dollar rebounds despite weaker GDP data, influenced by fluctuations in the S&P/ASX 200 Index and developments in the US Dollar and Fed Powell's testimony.

Markets In Focus Today – EUR/USD

EUR/USD Rises Above 1.0850 Ahead Of US Data, Fed's Powell.

EUR/USD is picking up fresh bids above 1.0850 in European trading on Wednesday, as the US Dollar licks its wounds amid a cautiously optimistic market mood ahead of Fed Chair Powell's testimony and US jobs data. EU Retail Sales report is eyed as well. EUR/USD trades in a tight channel above 1.0850 in the European morning on Wednesday as investors move to the sidelines ahead of key macroeconomic events. Although EUR/USD edged higher during the European trading hours on Tuesday, it failed to gather bullish momentum in the second half of the day as the US Dollar (USD) benefited from the souring market mood.

Technical Overview With Chart :

Moving Averages :

Exponential :

• MA 10 : 1.0837 | Positive Crossover | Bullish
• MA 20 : 1.0827 | Positive Crossover | Bullish
• MA 50 : 1.0836 | Positive Crossover | Bullish

Simple :

• MA 10 : 1.0839 | Positive Crossover | Bullish
• MA 20 : 1.0805 | Positive Crossover | Bullish
• MA 50 : 1.0859 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.0348 | Buy Zone | Bullish

Stochastic Oscillator : 82.4103 | Buy Zone | Neutral

Resistance And Support Levels :

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

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Stop Buy: 1.0858 | Take Profit: 1.0913 | Stop Loss: 1.0822

GBP/USD

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