Daily Technical Analysis by Capital Street FX

EUR/USD Consolidates and GBP/USD Subdued - 23/12/2024

KEY HIGHLIGHTS

1. EUR/USD Consolidates Amid Light Volumes, Focus on Fed.
2. GBP/USD Subdued as Market Awaits Key Economic Data.
3. USD/JPY Bullish Tone Supported by Fed’s Hawkish Stance.
4. AUD/USD Declines, Focus Shifts to RBA Minutes.

INTRODUCTION
Currency markets kicked off the week cautiously, with major pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD consolidating amid subdued trading volumes. Investors are focusing on central bank policies, economic data, and geopolitical developments to shape near-term price movements.
EUR/USD: Consolidation Amid a Holiday-Shortened Week
The EUR/USD pair remains steady, trading near 1.0440 during Monday’s European session. This consolidation comes as markets prepare for a holiday-shortened week, with Christmas Eve and Boxing Day affecting trading schedules on Wednesday and Thursday.

Key Factors Influencing EUR/USD

 

1. US Dollar Stabilization: After a steep decline on Friday due to weaker-than-expected US Personal Consumption Expenditure (PCE) Price Index data, the US Dollar (USD) has stabilized. Core PCE inflation, the Federal Reserve’s preferred metric, rose by 2.8% year-over-year, slightly below the 2.9% forecast. This has raised uncertainties about the Fed’s potential rate-cut cycle in 2025.
2. Economic Calendar: Monday’s schedule is light, with investors turning their attention to Tuesday’s release of US Durable Goods Orders for November, expected to show a 0.4% decline after a 0.3% rise in October.

Technical Overview
https://www.trade2win.com/proxy.php?...b0e1221a3f2463

 

1. Moving Averages:
   1. Exponential: MA10 (1.0446), MA20 (1.0491), MA50 (1.0619) – All indicating bearish momentum.
   2. Simple: MA10 (1.0454), MA20 (1.0496), MA50 (1.0633) – Negative crossover confirming bearish trends.

2. Indicators:
   1. RSI: 38.87 (Sell Zone)
   2. Stochastic Oscillator: 19.35 (Neutral)

3. Key Levels:
   1. Resistance: R1 (1.0846), R2 (1.0988)
   2. Support: S1 (1.0384), S2 (1.0242)

Trade Suggestion
Limit Sell: 1.0460 | Take Profit: 1.0344 | Stop Loss: 1.0548
GBP/USD: Range-Bound with Limited Upside Potential

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EUR/USD Recovers Slightly Amid Hawkish Fed Sentiments - 04/01/2025

KEY HIGHLIGHTS

1. USD/CHF Tests Key Support Amid Bearish Market Pressure.
2. EUR/USD Recovers Slightly Despite Persistent Bearish Trends.
3. USD/CAD Weakens, Extends Decline Against US Dollar.
4. CHF/JPY Outlook Shifts Amid Reduced Volatility Premium.

INTRODUCTION
The EUR/USD currency pair has experienced a slight recovery, paring its weekly losses as U.S. equities performed strongly. A significant factor in the currency’s movements was the remarks by Federal Reserve officials emphasizing a restrictive monetary policy stance. Richmond Fed President Thomas Barkin expressed optimism for the U.S. economy in 2025, with upside growth potential outweighing downside risks. These sentiments contributed to increased investor confidence in the greenback.

The euro, however, managed to bounce back after touching a 26-month low, supported by short-covering. This recovery came amid positive developments in China’s monetary policy, where the People’s Bank of China hinted at future rate cuts and reserve requirement adjustments to stabilize economic conditions. These measures bolstered broader market sentiment, indirectly benefiting the euro.
EUR/USD Technical Analysis:


https://www.trade2win.com/proxy.php?...257def2dddee82
Moving Averages:

 

1. Exponential:
   1. MA 10: 1.0364 | Negative Crossover | Bearish
   2. MA 20: 1.0412 | Negative Crossover | Bearish
   3. MA 50: 1.0542 | Negative Crossover | Bearish

2. Simple:
   1. MA 10: 1.0374 | Negative Crossover | Bearish
   2. MA 20: 1.0421 | Negative Crossover | Bearish
   3. MA 50: 1.0551 | Negative Crossover | Bearish

Indicators:

 

1. RSI: 34.63 | Neutral Zone | Neutral
2. Stochastic Oscillator: 15.02 | Buy Zone | Bullish

Resistance and Support Levels:

 

1. R1: 1.0551 | R2: 1.0619
2. S1: 1.0333 | S2: 1.0265

Overall Sentiment: Bearish Market Direction: Sell Trade Suggestion: Limit Buy at 1.0308 | Take Profit: 1.0265 | Stop Loss: 1.0709

USD/CAD Weakens Amid Broader Market Headwinds
The Canadian dollar extended its decline against the U.S. dollar, marking a sixth consecutive weekly loss. The loonie struggled amid multiple economic challenges, including weak Chinese economic performance, falling commodity prices, and a more hawkish Federal Reserve outlook. The USDCAD pair edged closer to a five-year high of 1.4467, reflecting a persistently strong U.S. dollar and subdued demand for the commodity-linked Canadian dollar.

China’s announcement of potential monetary policy easing failed to lift commodity-linked currencies significantly, as broader concerns about global growth and weak oil prices weighed heavily on the loonie.

USD/CAD Technical Analysis:


https://www.trade2win.com/proxy.php?...789a75a830dd02
Moving Averages:

 

1. Exponential:
   1. MA 10: 1.4381 | Positive Crossover | Bullish
   2. MA 20: 1.4317 | Positive Crossover | Bullish
   3. MA 50: 1.4144 | Positive Crossover | Bullish

2. Simple:
   1. MA 10: 1.4386 | Positive Crossover | Bullish
   2. MA 20: 1.4328 | Positive Crossover | Bullish
   3. MA 50: 1.4117 | Positive Crossover | Bullish

Indicators:

 

1. RSI: 70.65 | Neutral Zone | Neutral
2. Stochastic Oscillator: 77.05 | Neutral Zone | Neutral

Resistance and Support Levels:

 

1. R1: 1.4461 | R2: 1.4574
2. S1: 1.4097 | S2: 1.3984

Overall Sentiment: Bullish Market Direction: Buy Trade Suggestion: Limit Buy at 1.4444 | Take Profit: 1.4574 | Stop Loss: 1.3826

USD/CHF Tests Swing Area Support Amid Hawkish Trends

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NZD/USD Gains and USD/CAD Recovers Amid Trump’s Tariffs.

KEY HIGHLIGHTS

1. EUR/USD Dips Amid Tariff Tensions and Economic Data.
2. GBP/USD Climbs as Dollar Weakens, Retail Sales Surge.
3. NZD/USD Gains Amid Tariff Policy Uncertainty and PMI.
4. USD/CAD Recovers Amid Trump’s Tariffs and Trudeau Speculation.

INTRODUCTION
The forex market is experiencing notable movements as traders react to renewed uncertainty surrounding U.S. tariff policies and significant economic data releases. The NZD/USD and USD/CAD pairs are in focus, with the former gaining ground and the latter recovering amid political and economic developments. President-elect Donald Trump’s reaffirmation of his tariff plans has injected volatility into the currency markets, alongside mixed economic indicators from major global economies.
NZD/USD Records Gains Amid Tariff Uncertainty
The NZD/USD pair is trading near 0.5640, recording modest gains during Tuesday’s Asian session. A weaker U.S. dollar (USD) and robust economic data from China support the New Zealand dollar (NZD).

 

1. Market Drivers:
   1. U.S. Tariff Plans: Reports from the Washington Post suggest that Trump’s tariff strategy might narrow to focus on critical goods and services, adding uncertainty to the market.
   2. Chinese Economic Data: The Caixin PMI showed a seven-month high in China’s services activity for December, signaling economic resilience. This has positive implications for the NZD, given New Zealand’s strong trade ties with China.
   3. Federal Reserve Commentary: Hawkish remarks from Fed Governor Lisa Cook emphasized caution in further rate cuts, citing persistent inflation pressures. These comments could provide temporary support for the USD.

2. Technical Analysis:
   https://www.trade2win.com/proxy.php?...176ef9c46fc225
   1. Moving Averages:
      1. Exponential MA 10: 0.5635 (Bullish)
      2. Simple MA 10: 0.5623 (Bullish)

   2. Indicators:
      1. RSI: 42.41 (Neutral)
      2. Stochastic Oscillator: 38.95 (Neutral)

   3. Support and Resistance Levels:
      1. R1: 0.5829 | R2: 0.5908
      2. S1: 0.5573 | S2: 0.5494

3. Trade Suggestion:
   1. Limit Sell: 0.5750
   2. Take Profit: 0.5608
   3. Stop Loss: 0.5854

USD/CAD Recovers Ground Amid Trump and Trudeau Developments
The USD/CAD pair has regained momentum, trading near 1.4345 during the early Asian session. The pair’s recovery follows President-elect Trump’s strong stance on maintaining broad tariff policies, alongside political uncertainty in Canada.

 

1. Market Drivers:
   1. U.S. Tariff Policy: Trump dismissed reports that his tariff plans would focus on a limited range of imports, keeping markets alert for more assertive trade measures.
   2. Canadian Political Uncertainty: Speculation surrounding Prime Minister Justin Trudeau’s potential resignation adds another layer of volatility. Reports suggest an announcement may come ahead of an emergency Liberal Party meeting.
   3. Federal Reserve Insights: Hawkish commentary from Fed officials continues to influence the Greenback’s performance.

2. Technical Analysis:
   https://www.trade2win.com/proxy.php?...62c4944c9bff67
   1. Moving Averages:
      1. Exponential MA 20: 1.4318 (Bullish)
      2. Simple MA 50: 1.4134 (Bullish)

   2. Indicators:
      1. RSI: 54.41 (Neutral)
      2. Stochastic Oscillator: 45.78 (Neutral)

   3. Support and Resistance Levels:
      1. R1: 1.4461 | R2: 1.4574
      2. S1: 1.4097 | S2: 1.3984

3. Trade Suggestion:
   1. Limit Buy: 1.4272
   2. Take Profit: 1.4382
   3. Stop Loss: 1.4223

EUR/USD Under Pressure Amid Tariff Threats

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AUD/USD Bearish and USD/CHF Bullish: Forex Market Update.

KEY HIGHLIGHTS

1. EUR/USD edges toward 1.0350 amid economic data anticipation.
2. GBP/USD defensive below 1.2500 awaiting FOMC Minutes.
3. AUD/USD bearish despite inflation data, FOMC Minutes awaited.
4. USD/CHF bullish near 0.9100 ahead of key releases.

INTRODUCTION
Global currency markets are navigating mixed signals, with the Australian Dollar (AUD) under pressure while the US Dollar (USD) shows resilience, particularly against the Swiss Franc (CHF). This report delves into the latest developments, focusing on AUD/USD’s bearish momentum and USD/CHF’s bullish outlook. Additional insights into EUR/USD and GBP/USD are also covered for comprehensive analysis.

AUD/USD: Bearish Momentum Amid Inflation and Policy Concerns
The Australian Dollar struggles for the second consecutive session against the US Dollar, with the AUD/USD pair trading lower despite stronger-than-expected monthly inflation data. Weak economic indicators and a cautious Reserve Bank of Australia (RBA) weigh heavily on the pair.

Key Drivers:

1. Inflation Trends: Australia’s trimmed mean inflation declined to 3.2% annually, nearing the RBA’s target range of 2-3%, dampening expectations of aggressive monetary tightening.
2. Building Permits: New construction permits dropped by 3.6% in November, marking the first decline in three months and missing market expectations.
3. China’s Economic Support: The People’s Bank of China’s (PBoC) collaborative measures to stimulate growth provide limited relief to AUD.

Technical Overview:

https://www.trade2win.com/proxy.php?...b58d8b44d1bbd2

 

1. Moving Averages:
   1. Exponential: MA 10 at 0.6228 (Bearish), MA 20 at 0.6263 (Bearish), MA 50 at 0.6380 (Bearish).
   2. Simple: MA 10 at 0.6215 (Bullish), MA 20 at 0.6249 (Bearish), MA 50 at 0.6402 (Bearish).

2. RSI: 37.03 (Sell Zone, Neutral).
3. Stochastic Oscillator: 40.18 (Neutral Zone).
4. Resistance Levels: R1: 0.6428, R2: 0.6509.
5. Support Levels: S1: 0.6166, S2: 0.6085.

Trade Suggestion:

1. Action: Limit Sell at 0.6301.
2. Take Profit: 0.6180.
3. Stop Loss: 0.6388.

USD/CHF: Bullish Momentum Supported by US Dollar Strength

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EUR/USD Tests Two-Year Lows, GBP/USD Rebounds.

KEY HIGHLIGHTS

 

1. EUR/USD tests two-year lows, struggles to regain momentum.
2. GBP/USD rebounds above 1.2200 despite stagflation concerns.
3. USD/CHF retreats toward 0.9150 ahead of US PPI data.
4. NZD/USD finds support near 0.5600, rebounds cautiously.

INTRODUCTION
Global currency markets remain highly volatile as economic data releases and geopolitical developments influence key forex pairs. Both EUR/USD and GBP/USD are in focus, with EUR/USD testing two-year lows and GBP/USD showing signs of recovery. Below, we delve into the critical factors impacting these pairs and provide technical insights.

EUR/USD Struggles at Two-Year Lows
EUR/USD extended its bearish trajectory on Monday, hitting the 1.0200 level for the first time since late 2022. Despite a modest recovery attempt, the pair remains under pressure as the European Central Bank (ECB) continues its rate-cutting stance. This widens the Euro’s interest rate disadvantage relative to the US Dollar, especially as the Federal Reserve maintains a hawkish monetary policy.

Key economic data from Europe this week, including final inflation figures for the Eurozone and Germany, are expected to align with preliminary estimates, offering little support to the Euro. Meanwhile, the US is set to release critical economic reports, including the Producer Price Index (PPI) and Consumer Price Index (CPI), which could reinforce USD strength.

Technical Overview
https://www.trade2win.com/proxy.php?...6a58cbc8e6ade2

 

1. Moving Averages (Exponential):
   1. MA 10: 1.0300 | Negative Crossover | Bearish
   2. MA 20: 1.0349 | Negative Crossover | Bearish
   3. MA 50: 1.0481 | Negative Crossover | Bearish

2. RSI (Relative Strength Index): 34.90 | Sell Zone | Bearish
3. Stochastic Oscillator: 20.12 | Sell Zone | Neutral
4. Support Levels: S1: 1.0333 | S2: 1.0265
5. Resistance Levels: R1: 1.0551 | R2: 1.0619

Trade Suggestion:

 

1. Limit Sell: 1.0302
2. Take Profit: 1.0179
3. Stop Loss: 1.0407

GBP/USD Rebounds Above 1.2200
GBP/USD broke its five-day losing streak on Tuesday, recovering from Monday’s 15-month low of 1.2099. The pair climbed above 1.2200, supported by improved investor sentiment following reports of a phased approach to US tariff hikes under consideration by President-elect Donald Trump’s economic team. This tempered inflation concerns while boosting the Pound.

Despite the rebound, concerns over the UK’s economic health persist. Stagflation risks, rising UK government bond yields, and fiscal worries continue to weigh on the GBP. Rising Treasury yields reflect the Federal Reserve’s hawkish stance on the US front, further strengthening the USD.

Technical Overview
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Daily Forex Analysis – EUR/USD Steady and GBP/USD Gains.

KEY HIGHLIGHTS

1. EUR/USD Steady Near 1.0300 Amid Inauguration Concerns
2. GBP/USD Gains Limited Below 1.2200 Amid Uncertainties
3. USD/JPY Awaits Inaugural Speech, Trades Near 156.20
4. AUD/USD Rises Slightly as Metals Prices Support

INTRODUCTION
The global currency markets are navigating cautious optimism ahead of President-elect Donald Trump’s inauguration. Mixed pressures on the US Dollar (USD) influence major currency pairs, with EUR/USD maintaining steady movement while GBP/USD posts modest gains. Here’s a detailed analysis of the latest market trends.
EUR/USD: Gains Capped Ahead of Trump’s Inauguration
The EUR/USD pair has recovered part of its previous session losses, trading near 1.0280 during Asian hours. However, its upside remains limited as market caution ahead of Donald Trump’s inauguration strengthens the US Dollar. Traders closely monitor Trump’s anticipated executive orders, which are expected to address policies such as tariffs, tax cuts, and immigration reforms. These factors have increased US Treasury yields, providing additional support to the USD.

Key Influences on EUR/USD:

 

1. Federal Reserve Outlook: The Fed is expected to maintain interest rates at its January meeting, but markets anticipate rate hikes resuming in March, depending on the extent of Trump’s policy implementations.
2. ECB Dovish Expectations: Persistent dovish sentiment surrounds the European Central Bank (ECB), with markets pricing in a 25 basis point rate cut at each of the next four ECB meetings. Concerns about subdued inflationary pressures in the Eurozone weigh on the Euro.

Technical Analysis for EUR/USD:
https://www.trade2win.com/attachment...37-png.339772/

1. Moving Averages:
   1. Exponential: MA 10: 1.0302 (Bullish), MA 20: 1.0335 (Bearish), MA 50: 1.0455 (Bearish)
   2. Simple: MA 10: 1.0293 (Bullish), MA 20: 1.0332 (Bearish), MA 50: 1.0439 (Bearish)

2. RSI (Relative Strength Index): 44.68 – Neutral
3. Stochastic Oscillator: 44.18 – Neutral
4. Resistance Levels: R1: 1.0551, R2: 1.0619
5. Support Levels: S1: 1.0332, S2: 1.0265

Trade Suggestion:

 

1. Limit Sell: 1.0351
2. Take Profit: 1.0216
3. Stop Loss: 1.0456

GBP/USD: Mild Gains Amid Softer USD
The GBP/USD pair is slightly higher, trading around 1.2180 and recovering from Friday’s decline. A softer US Dollar, driven by expectations of potential Fed rate cuts by year-end, has supported the pair. Additionally, a broadly positive risk sentiment is limiting the USD’s appeal as a safe-haven currency.

Key Influences on GBP/USD:

1. UK Economic Outlook: Concerns over the UK’s fiscal health and the risk of stagflation have capped significant bullish momentum for the British Pound.
2. Fed Policy Expectations: Market participants believe Trump’s policies could drive inflation higher, prompting a hawkish Fed stance later in the year.

Technical Analysis for GBP/USD:
https://www.trade2win.com/attachment...06-png.339773/

 

1. Moving Averages:
   1. Exponential: MA 10: 1.2266 (Bearish), MA 20: 1.2358 (Bearish), MA 50: 1.2538 (Bearish)
   2. Simple: MA 10: 1.2261 (Bearish), MA 20: 1.2384 (Bearish), MA 50: 1.2548 (Bearish)

2. RSI (Relative Strength Index): 34.09 – Bearish
3. Stochastic Oscillator: 21.47 – Neutral
4. Resistance Levels: R1: 1.2727, R2: 1.2807
5. Support Levels: S1: 1.2471, S2: 1.2391

Trade Suggestion:

 

1. Limit Sell: 1.2307
2. Take Profit: 1.2102
3. Stop Loss: 1.2467

Additional Insights: USD/JPY and AUD/USD
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EUR/USD Drops Amid Tariff Threats and GBP/USD Weakens

INTRODUCTION
Global currency markets are under pressure, driven by escalating geopolitical uncertainties, central bank policy shifts, and tariff threats. Key currency pairs like EUR/USD, GBP/USD, AUD/USD, and USD/CHF are reacting to these developments. This article focuses on the EUR/USD’s decline due to tariff concerns and GBP/USD’s weakness as the Bank of England (BoE) hints at an interest rate cut. Keywords such as “EUR/USD,” “GBP/USD,” “tariff threats,” and “central bank policies” ensure relevance for search engines and drive maximum traffic.
EUR/USD Declines Amid Trump’s Tariff Threats
The EUR/USD pair is trading near 1.0410, inching closer to the 1.0400 level during Thursday’s Asian session. This decline is attributed to U.S. President Trump’s proposed tariffs on the Eurozone, Canada, Mexico, and China. The European Commission’s preliminary Consumer Confidence report for January, along with U.S. Initial Jobless Claims data, could further impact the pair.

Key Drivers:

 

1. Tariff Threats: Trump’s discussion of 25% tariffs has heightened fears of an economic slowdown in the Eurozone.
2. ECB Rate Cut Expectations: Analysts predict a 25-basis-point cut across four upcoming European Central Bank meetings.
3. USD Strength: Rising U.S. Treasury yields and limited Federal Reserve rate cuts provide support for the U.S. Dollar, pressuring the Euro further.

Technical Overview:
https://www.trade2win.com/attachment...27-png.339823/

 

1. Moving Averages (MA):
   1. Exponential: MA10: 1.0360 | Bullish | MA20: 1.0361 | Bullish
   2. Simple: MA10: 1.0330 | Bullish | MA20: 1.0337 | Bullish

2. Indicators:
   1. RSI: 51.67 (Buy Zone) | Stochastic: 85.04 (Neutral)

3. Resistance Levels: R1: 1.0551 | R2: 1.0619
4. Support Levels: S1: 1.0332 | S2: 1.0265

Trade Suggestion:

 

1. Limit Buy: 1.0376 | Take Profit: 1.0458 | Stop Loss: 1.0331

GBP/USD Weakens as BoE Considers Rate Cuts
The British Pound trades cautiously amid concerns over rising borrowing costs and the BoE’s dovish stance. December’s higher-than-expected Public Sector Net Borrowing has intensified fears of slowed economic growth in the UK.

Key Drivers:

1. BoE Rate Cut Expectations: Market participants anticipate a rate cut in February, reflecting the UK’s subdued growth outlook.
2. Tariff Concerns: Higher U.S. tariffs could negatively impact global trade, further weighing on the Pound.
3. Rising Borrowing Costs: The UK’s 30-year gilt yields have surged to 5.47%, their highest in over 26 years.

Technical Overview:
https://www.trade2win.com/attachment...21-png.339824/

 

1. Moving Averages (MA):
   1. Exponential: MA10: 1.2302 | Bearish | MA20: 1.2356 | Bearish
   2. Simple: MA10: 1.2255 | Bullish | MA20: 1.2357 | Bearish

2. Indicators:
   1. RSI: 42.37 (Neutral) | Stochastic: 46.91 (Neutral)

3. Resistance Levels: R1: 1.2727 | R2: 1.2807
4. Support Levels: S1: 1.2471 | S2: 1.2391

Trade Suggestion:

 

1. Limit Sell: 1.2367 | Take Profit: 1.2187 | Stop Loss: 1.2478

AUD/USD Under Pressure Despite Improved Sentiment
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EUR/USD Gains Expected and GBP/USD Sell-on-Rallies.
INTRODUCTION
The forex market is poised for significant movement this week, with the EUR/USD and GBP/USD pairs in focus. Monetary policy expectations, geopolitical developments, and critical economic data will drive market sentiment. Here is a comprehensive outlook on the two key pairs and additional insights into USD/JPY and AUD/USD trends.

EUR/USD Weekly Outlook: Gains Expected but Likely Short-Lived
The EUR/USD pair has shown strength, closing the week above the critical 1.0500 mark and hitting a five-week high. This bullish momentum stems from several factors:

 

1. Weakening US Dollar: The US Dollar Index (DXY) has fallen to the 107.30 zone, pressured by growing Federal Reserve rate cuts expectations.
2. Eurozone Bond Yields: A rebound in German bund yields, particularly in mid- and long-term segments, has supported the Euro.
3. Risk Sentiment: Improved global risk sentiment and speculation around US trade policies have further weighed the Dollar.

ECB’s Monetary Policy
The European Central Bank (ECB) is expected to adopt a cautious stance with a possible rate cut. ECB President Christine Lagarde’s emphasis on balancing inflation targets while avoiding instability supports this incremental approach.

Technical Analysis
https://www.trade2win.com/attachment...72-png.339863/

 

1. Moving Averages:
   1. Exponential: MA10: 1.0388 (Bullish), MA20: 1.0376 (Bullish), MA50: 1.0456 (Bullish)
   2. Simple: MA10: 1.0357 (Bullish), MA20: 1.0342 (Bullish), MA50: 1.0430 (Bullish)

2. Indicators:
   1. RSI: 60.85 (Buy Zone, Bullish)
   2. Stochastic Oscillator: 86.67 (Neutral)

3. Key Levels:
   1. Resistance: R1: 1.0551, R2: 1.0619
   2. Support: S1: 1.0332, S2: 1.0265

Trade Suggestion

1. Limit Buy: 1.0440
2. Take Profit: 1.0593
3. Stop Loss: 1.0357

GBP/USD Weekly Forecast: Sell-on-Rallies Opportunity
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Forex Market Volatility Rises as Traders Await Fed Decision; USD Strengthens Amid Risk Aversion.

EUR/USD Stabilizes and GBP/USD Slips as Fed Decision Nears

Market Overview
Currency markets remain highly volatile as traders brace for the Federal Reserve’s (Fed) upcoming policy decision. The US Dollar (USD) strengthens, driven by risk aversion and tariff threats from former President Donald Trump, pressuring major currencies like the Euro (EUR), British Pound (GBP), Australian Dollar (AUD), and Canadian Dollar (CAD). Central bank policies and key economic data will shape further movements in the forex market.

EUR/USD Stabilizes Near 1.0450 but Faces Resistance

The EUR/USD pair stabilizes near 1.0450 after a two-day decline but struggles to gain momentum as risk-off sentiment dominates.

The US Dollar finds support from expectations that the Federal Reserve will keep rates steady in the 4.25%-4.50% range. However, all eyes remain on Fed Chair Jerome Powell’s press conference, which could provide signals on future monetary policy.

Meanwhile, the Euro remains under pressure, with markets expecting the European Central Bank (ECB) to cut interest rates by 25 basis points to 2.75% on Thursday. Concerns over the Eurozone’s sluggish economy and the ECB’s inflation target reinforce bearish sentiment.

EUR/USD Technical Analysis

https://www.trade2win.com/proxy.php?...0c39981fc5c103

 

1. Exponential Moving Averages (EMA):
   1. 10-day EMA: 1.0411 | Bullish crossover
   2. 20-day EMA: 1.0393 | Bullish crossover
   3. 50-day EMA: 1.0455 | Bearish crossover

2. Relative Strength Index (RSI): 51.70 (Buy Zone | Bullish)
3. Stochastic Oscillator: 75.23 (Neutral)
4. Key Levels:
   1. Resistance: 1.0551 (R1), 1.0619 (R2)
   2. Support: 1.0332 (S1), 1.0265 (S2)

Trade Suggestion: Limit Buy @ 1.0354 | Take Profit @ 1.0533 | Stop Loss @ 1.0267

GBP/USD Slips Below 1.2450 as Dollar Strengthens
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Forex Markets Await Key US Data: EUR/USD, GBP/USD, USD/JPY & AUD/USD Show Mixed Signals.

EUR/USD Consolidates Near Key Levels

Market Overview:

The EUR/USD pair continues to trade within a narrow range around the 1.0375-1.0390 zone, struggling to maintain momentum after rebounding from the 1.0200 region—its lowest since January 13. Mixed fundamental factors, including US economic data and ECB policy decisions, are driving this consolidation.
Key Factors Influencing EUR/USD:

 

1. US Labor Market Data: The recent Job Openings and Labor Turnover Survey (JOLTS) signaled a cooling US labor market, reinforcing expectations of potential Federal Reserve (Fed) rate cuts.
2. ECB’s Dovish Stance: Despite a rise in the Eurozone Harmonized Index of Consumer Prices (HICP) to 2.5% annually, the ECB’s dovish outlook limits bullish momentum.
3. Geopolitical Concerns: Potential US tariffs on EU goods under former President Trump’s trade policies add to investor caution.

Technical Analysis:
https://www.trade2win.com/proxy.php?...677a5044b09341

 

1. Current Price: 1.0375 – 1.0380
2. Moving Averages:
   1. Exponential (EMA): MA 10 (1.0388 – Bullish), MA 20 (1.0385 – Bullish), MA 50 (1.0440 – Bearish)
   2. Simple (SMA): MA 10 (1.0411 – Bearish), MA 20 (1.0366 – Bullish), MA 50 (1.0411 – Bearish)

3. RSI: 50.62 (Bullish Zone)
4. Stochastic Oscillator: 50.14 (Neutral)
5. Resistance Levels: R1: 1.0492, R2: 1.0576
6. Support Levels: S1: 1.0220, S2: 1.0136

Trade Suggestion:

 

1. Entry Point: Limit Buy at 1.0353
2. Take Profit: 1.0468
3. Stop Loss: 1.0293

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Capital Street FX

EUR/USD Near 1.0500, GBP/USD Holds Gains, JPY Under Pressure.

The forex market remains cautious ahead of key economic data releases, with major currency pairs responding to shifting fundamentals. The EUR/USD pair hovers around the 1.0500 mark as the US Dollar gains momentum, while GBP/USD trades near a two-month high amid mixed signals from the Federal Reserve. Meanwhile, USD/JPY remains under pressure, with Bank of Japan (BoJ) rate hike expectations limiting losses. The AUD/USD pair declines slightly as the US Dollar remains firm ahead of key economic reports.
KEY HIGHLIGHTS

1. EUR/USD holds near 1.0500 ahead of key PMI data.
2. GBP/USD trades near two-month high amid market optimism.
3. USD/JPY remains under pressure despite BoJ rate hike hopes.
4. AUD/USD edges lower as US Dollar stays firm.

EUR/USD Holds Near 1.0500 Ahead of PMI Data
The EUR/USD pair remains range-bound around 1.0500 in early European trading on Friday, weighed down by a stronger US Dollar. Traders exercise caution ahead of the preliminary Eurozone and US PMI releases, keeping the pair in consolidation mode.
Key Market Factors:

1. US Dollar Strength: A broad recovery in the US Dollar Index (DXY) has pressured the euro, with investors closely watching US economic data and Federal Reserve policy signals.
2. Trade Policy Uncertainty: Recent delays in US tariffs on Canadian and Mexican imports have created uncertainty, while tensions with China remain unresolved.
3. Technical Analysis: The daily chart suggests a potential bearish reversal, with EUR/USD trading within a rising wedge pattern, signaling declining buying pressure.

Technical Overview:
https://www.capitalstreetfx.com/en/w...1_12-16-57.png

1. Moving Averages (Bullish Crossover)
2. EMA 10: 1.0446 | EMA 20: 1.0422 | EMA 50: 1.0435
3. RSI: 58.31 | Buy Zone | Neutral
4. Stochastic Oscillator: 85.12 | Buy Zone | Neutral
5. Support & Resistance Levels:
6. R1: 1.0492 | R2: 1.0576
7. S1: 1.0220 | S2: 1.0136

Trade Suggestion:
Limit Buy: 1.0467 | Take Profit: 1.0534 | Stop Loss: 1.0431
GBP/USD Trades Near Two-Month High Amid Fed Uncertainty
GBP/USD remains resilient, hovering around 1.2670 after retreating slightly from its two-month high of 1.2674. A weaker US Dollar, combined with better-than-expected UK economic data, supports the pair.
Key Market Factors:

1. US Jobless Claims Data: The US Initial Jobless Claims rose to 219,000 (vs. 215,000 expected), weighing on the Dollar.
2. Bank of England (BoE) Commentary: Governor Andrew Bailey warned of sluggish economic growth, but recent strong UK CPI data has supported Sterling.
3. Trade Sentiment Boost: Optimism regarding US-China trade negotiations has also helped sustain GBP/USD at higher levels.

Technical Overview:
https://www.capitalstreetfx.com/en/w...1_12-18-35.png

1. Moving Averages (Bullish Crossover)
2. EMA 10: 1.2577 | EMA 20: 1.2519 | EMA 50: 1.2517
3. RSI: 63.85 | Buy Zone | Bullish
4. Stochastic Oscillator: 93.94 | Buy Zone | Neutral
5. Support & Resistance Levels:
6. R1: 1.2538 | R2: 1.2650
7. S1: 1.2174 | S2: 1.2062

Trade Suggestion:
Limit Buy: 1.2628 | Take Profit: 1.2730 | Stop Loss: 1.2571

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EUR/USD Rebounds Above 1.0400 as US Dollar Weakens Post-PCE Data; Traders Eye Eurozone CPI. - 3/3/2025

EUR/USD: Rebounds Above 1.0400 Ahead of Eurozone HICP Data

EUR/USD breaks its three-day losing streak, climbing above 1.0400 in anticipation of key Eurozone inflation data. During Monday’s Asian session, the pair hovered around 1.0410, supported by a weaker US Dollar after the latest PCE inflation report aligned with expectations. The monthly headline PCE remained steady at 0.3%, while core PCE edged up to 0.3% from December’s 0.2%. However, rising US-China trade tensions may strengthen the USD as a safe-haven asset, potentially capping EUR/USD gains.

Additionally, Germany’s higher-than-expected February flash HICP inflation data provided some support to the Euro. However, the European Central Bank (ECB) is still expected to maintain its dovish stance in its upcoming policy meeting.

Technical Overview
https://www.trade2win.com/proxy.php?...0558e55c169026


Moving Averages:

1. Exponential:
2. MA 10: 1.0431 | Bearish
3. MA 20: 1.0426 | Bearish
4. MA 50: 1.0435 | Bearish
5. Simple:
6. MA 10: 1.0447 | Bearish
7. MA 20: 1.0422 | Bearish
8. MA 50: 1.0387 | Bullish

Indicators:

1. RSI: 48.69 | Neutral
2. Stochastic Oscillator: 41.67 | Neutral

Resistance & Support Levels:

1. R1: 1.0493 | R2: 1.0568
2. S1: 1.0249 | S2: 1.0174

Market Sentiment: Bearish
Trade Suggestion: Limit Sell: 1.0443 | Take Profit: 1.0359 | Stop Loss: 1.0501

GBP/USD: Sterling Gains on Russia-Ukraine Truce Hopes
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EUR/USD Holds Below 1.0950 as Trade War Escalates; GBP/USD and USD/CAD React to Key Economic Data. 18-3- 2025

The foreign exchange market remains under pressure as geopolitical tensions, trade disputes, and central bank decisions shape sentiment. The US Dollar’s performance is mixed, with concerns over economic growth and upcoming Federal Reserve policy decisions driving market movements. Meanwhile, the Euro, Pound, and Canadian Dollar face key domestic catalysts that could influence near-term trends.

KEY HIGHLIGHTS

1. EUR/USD Stays Below 1.0950 Amid Trade War Concerns.
2. GBP/USD Dips Below 1.3000 Despite Limited Downside Pressure.
3. USD/CAD Trades Near 1.4300 Before Canadian CPI Release.
4. USD/CHF Remains Flat Around 0.8800 Awaiting Fed Decision.

EUR/USD Analysis
Market Overview
EUR/USD remains below 1.0950, with optimism surrounding a potential German fiscal agreement potentially helping to curb further losses.

During the early Asian session on Tuesday, the pair trades around 1.0915, experiencing modest losses due to escalating trade tensions. US President Donald Trump’s decision to impose additional tariffs on European Union goods, including a proposed 200% levy on European wine and spirits, has heightened tensions. In response, the EU has outlined plans for retaliation, which could pressure the Euro further.

However, losses may be cushioned by a weaker US Dollar amid concerns over a potential economic slowdown in the United States. Additionally, optimism around Germany’s fiscal policy developments might limit losses for the Euro, with expectations that the proposed €500 billion infrastructure fund and debt restructuring agreement will gain approval.

Technical Overview


https://www.trade2win.com/proxy.php?...8f4cb69a89cdca

Moving Averages

1. Exponential:
2. MA 10: 1.0825 | Bullish
3. MA 20: 1.0716 | Bullish
4. MA 50: 1.0583 | Bullish
5. Simple:
6. MA 10: 1.0859 | Bullish
7. MA 20: 1.0665 | Bullish
8. MA 50: 1.0491 | Bullish

Indicators

1. RSI: 70.78 | Buy Zone
2. Stochastic Oscillator: 92.23 | Neutral

Resistance & Support Levels

1. R1: 1.0493 | R2: 1.0568
2. S1: 1.0249 | S2: 1.0174

Trade Suggestion:

 

1. Limit Buy: 1.0721 | Take Profit: 1.0950 | Stop Loss: 1.0596

GBP/USD Analysis

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EUR/USD Rebounds Amid US Concerns, GBP/USD Strengthens on BoE Hawkishness.
EUR/USD Rebounds Amid US Concerns, GBP/USD Strengthens on BoE Hawkishness
The forex market remains volatile as investors shift their focus to upcoming PMI data and evolving trade policies. The EUR/USD pair stabilizes near 1.0840 amid concerns over a potential US economic slowdown, while GBP/USD maintains a positive tone due to the Bank of England’s (BoE) hawkish stance. Meanwhile, USD/JPY hovers around 150.00 as weaker Japanese PMI data puts pressure on the yen, and AUD/USD sees a recovery fueled by robust Australian PMI figures.

KEY HIGHLIGHTS

1. EUR/USD Rebounds on US Slowdown Concerns, PMI Data Ahead.
2. GBP/USD Rises on BoE Hawkishness, Market Awaits PMI Results.
3. USD/JPY Steady Near 150.00 Amid Geopolitical Uncertainty.
4. AUD/USD Gains Strength After Positive Domestic PMI Figures.

EUR/USD Climbs Toward 1.0850 Amid US Economic Concerns
EUR/USD has rebounded to approximately 1.0850, reversing a three-day decline during Monday’s early Asian session. Concerns over a potential US economic slowdown, driven by trade policies under President Donald Trump, are weighing on the US Dollar, thereby supporting the pair.

Key Factors Influencing EUR/USD:

1. US Trade Policy: The White House is revising its tariff strategy ahead of the April 2 implementation. Reports indicate a shift toward reciprocal tariffs on key US trading partners.
2. Eurozone Economic Risks: ECB President Christine Lagarde has highlighted downside risks due to ongoing trade disputes.
3. Upcoming Data: Investors are closely watching the preliminary March Purchasing Managers Index (PMI) data for the Eurozone, Germany, and the United States, set for release later today.

Technical Overview

https://www.trade2win.com/proxy.php?...ce3fd2aaa47545

 

1. Moving Averages (Exponential)
2. MA 10: 1.0840 | Negative Crossover | Bearish
3. MA 20: 1.0762 | Positive Crossover | Bullish
4. MA 50: 1.0624 | Positive Crossover | Bullish
5. RSI (Relative Strength Index): 60.93 | Buy Zone | Bullish
6. Stochastic Oscillator: 73.29 | Buy Zone | Neutral

Resistance & Support Levels

 

1. R1: 1.0493 | R2: 1.0568
2. S1: 1.0249 | S2: 1.0174

Trade Suggestion:

 

1. Limit Buy: 1.0710
2. Take Profit: 1.0919
3. Stop Loss: 1.0594

GBP/USD Gains Traction Near 1.2950 as Traders Eye US PMI Data
GBP/USD has edged higher toward 1.2940 in early European trading, supported by a softer US Dollar. Uncertainty surrounding President Trump’s trade policies and concerns over a potential US economic slowdown are keeping the Greenback subdued.


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EUR/USD Rises on Weak US Data, GBP/USD Struggles After Softer UK Inflation.

The global currency markets are experiencing heightened volatility, with major forex pairs reacting to key economic data and policy shifts. The EUR/USD strengthens as weak U.S. consumer confidence weighs on the dollar, while GBP/USD remains under pressure following softer UK inflation data. Meanwhile, AUD/USD benefits from record-breaking copper prices, and USD/CHF stabilizes as the U.S. dollar gains strength amid market caution and hawkish Fed sentiment.

KEY HIGHLIGHTS

1. EUR/USD Gains as US Consumer Confidence Hits Low.
2. GBP/USD Weakens After Softer UK Inflation Data Release.
3. AUD Gains Amid Copper Price Surge to Record Highs.
4. USD/CHF Steady as Market Caution Boosts US Dollar.

Markets in Focus Today
EUR/USD: Gains Momentum Amid Weak U.S. Consumer Confidence
EUR/USD advances above 1.0750 as disappointing U.S. economic data and uncertainty over Donald Trump’s trade policies weigh on the dollar. Investors await the U.S. Durable Goods Orders report for February, which could provide further direction.

Key Market Insights:

1. U.S. Consumer Confidence: Plunged to its lowest level in over four years, indicating growing household concerns.
2. Trump’s Trade Policies: Uncertainty over reciprocal tariffs may further pressure the Greenback.
3. ECB Outlook: Dovish rhetoric from ECB officials suggests room for rate cuts, potentially capping the Euro’s gains.

Technical Overview
https://www.earnforex.com/forum/prox...1a6dbd1a6983fa

 

1. Moving Averages (Exponential & Simple): Mixed signals, with short-term bearish pressure but long-term bullish outlook.
2. RSI: 56.49 (Bullish)
3. Stochastic Oscillator: 24.83 (Neutral)
4. Resistance Levels: R1: 1.0493, R2: 1.0568
5. Support Levels: S1: 1.0249, S2: 1.0174
6. Trade Suggestion: Limit Buy at 1.0717 | Take Profit: 1.0887 | Stop Loss: 1.0629

GBP/USD: Under Pressure Following Soft UK Inflation Data

Daily Expert Market Analysis

Forex Market Reacts to US Tariffs: EUR/USD Rises, USD/JPY Falls Ahead of NFP Report.

Major currency pairs remain volatile on Friday as global markets react to sweeping trade tariffs announced by U.S. President Donald Trump. Mounting fears of a global economic slowdown, shifting central bank expectations, and anticipation of the U.S. Nonfarm Payrolls report are driving sharp movements across the EUR, GBP, JPY, and AUD.

KEY HIGHLIGHTS

1. EUR/USD Rises as US Dollar Weakens Before Key Data.
2. GBP/USD Holds Strong Amid US Tariff Shock and Uncertainty.
3. USD/JPY Drops as Investors Seek Safe-Haven Amid Tariff Risks.
4. AUD/USD Declines on Trade War Concerns and RBA Rate Bets.

Markets in Focus Today

EUR/USD: Euro Climbs Past 1.1050 Ahead of U.S. Nonfarm Payrolls

The EUR/USD pair extends its gains for a third consecutive session, trading around 1.1080 during early European hours on Friday. This upward momentum is driven by broad-based weakness in the U.S. Dollar. Key data releases, including German Factory Orders and the U.S. Nonfarm Payrolls report, remain in focus.

Market Drivers

1. President Trump announced sweeping global tariffs, including:
2. 10% base duty on imports from most U.S. trading partners.
3. 20% tariff on European Union (EU) goods.
4. Additional higher tariffs on imports from other major trade allies.
5. These measures, set to take effect on April 9, have raised concerns over a global economic slowdown.
6. The market is pricing in an 80% probability of a 25 basis points rate cut by the European Central Bank (ECB) in April.

Technical Overview


https://www.trade2win.com/proxy.php?...a807f34ee9925d
Moving Averages:

 

1. Exponential:
2. MA 10: 1.0882 | Positive Crossover | Bullish
3. MA 20: 1.0825 | Positive Crossover | Bullish
4. MA 50: 1.0693 | Positive Crossover | Bullish
5. Simple:
6. MA 10: 1.0844 | Positive Crossover | Bullish
7. MA 20: 1.0861 | Positive Crossover | Bullish
8. MA 50: 1.0624 | Positive Crossover | Bullish

Indicators:

 

1. RSI: 66.72 | Buy Zone | Bullish
2. Stochastic Oscillator: 61.33 | Buy Zone | Neutral

Key Levels:

 

1. Resistance: R1: 1.0938, R2: 1.1074
2. Support: S1: 1.0495, S2: 1.0358

Market Sentiment: Bullish

Trade Suggestion:

 

1. Limit Buy: 1.0859
2. Take Profit: 1.1070
3. Stop Loss: 1.0734

GBP/USD: Pound Sterling Holds Firm Amid U.S. Economic Pressures


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US Dollar Weakens After Moody’s Downgrade; EUR/USD, GBP/USD, and AUD/USD Rise as Rate Cut Bets Grow.

Currency markets opened the week with a mix of caution and volatility. The US Dollar weakened significantly following Moody’s downgrade of the US sovereign credit rating. Diverging central bank outlooks, geopolitical headlines, and fresh economic data from the US and UK are reshaping trader sentiment in pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD. US and UK traders are closely monitoring these developments during overlapping trading hours for timely opportunities.

KEY HIGHLIGHTS

1. EUR/USD rebounds near 1.1200 as US Dollar weakens.
2. GBP/USD holds gains near 1.3300 amid Dollar pressure.
3. USD/JPY slips toward 145.00 amid safe-haven Yen demand.
4. AUD/USD steady above 0.6400 after mixed China data.

EUR/USD
Euro Gains Momentum Toward 1.1200 as Dollar Falters on Moody’s Downgrade
The EUR/USD pair climbed during early Monday trading, touching 1.1190 as the US Dollar lost ground across both London and New York sessions. The downgrade of the US credit rating by Moody’s—from Aaa to Aa1—has shaken investor confidence, citing spiraling federal debt, rising interest costs, and expanding deficits.

While this mirrors earlier downgrades by Fitch and S&P, it has re-ignited questions among US-based traders about fiscal sustainability and future Fed policy. Traders in the UK are also reassessing the ECB’s potential next move, as signs point toward another rate cut—especially with Eurozone inflation gradually aligning with the ECB’s 2% target.

Geopolitically, both US and UK investors are eyeing US-China trade negotiations and early optimism over talks with Iran and Russia. The latter could reduce global risk premiums, especially relevant to UK institutional portfolios.

Technical Overview
https://www.earnforex.com/forum/atta...925-png.32619/

Exponential Moving Averages (EMA):

 

1. MA 10: 1.1214 | Bearish
2. MA 20: 1.1227 | Bearish
3. MA 50: 1.1099 | Bullish

Simple Moving Averages (SMA):

 

1. MA 10: 1.1217 | Bearish
2. MA 20: 1.1282 | Bearish
3. MA 50: 1.1113 | Bullish

Indicators:

 

1. RSI: 50.18 | Bullish
2. Stochastic: 35.00 | Neutral

Support/Resistance:

 

1. Resistance: 1.1529 / 1.1717
2. Support: 1.0922 / 1.0734

/ Trade Suggestion:

 

1. Limit Buy: 1.1159
2. Take Profit: 1.1267
3. Stop Loss: 1.1108

GBP/USD
Sterling Holds Strong Near 1.3300 as US Sentiment Weakens

What Happens in the market - FOREX MARKET

US Dollar Weakens on Inflation and Debt Worries.

EUR/USD Outlook: Dollar Weakness Boosts Euro Near Key Resistance

Price Holds Above 1.1250 in Early European Hours
EUR/USD continues to build on recent gains, trading above 1.1250 in early London trading. US Dollar softness, driven by Moody’s credit downgrade, cooling inflation, and uncertainties surrounding US tariffs, is lending support to the pair.

With no major US data scheduled during the New York session, market focus for American traders shifts to Fed speakers and the potential for more dovish commentary. Meanwhile, UK-based traders await Wednesday’s UK CPI release, which could influence EUR/GBP sentiment and cross-hedging activity.
Key Technical Overview



https://www.trade2win.com/attachment...-1-png.341663/
Moving Averages
Exponential

 

1. MA 10: 1.1230 | Positive Crossover | Bullish
2. MA 20: 1.1235 | Positive Crossover | Bullish
3. MA 50: 1.1107 | Positive Crossover | Bullish

Simple

 

1. MA 10: 1.1211 | Positive Crossover | Bullish
2. MA 20: 1.1279 | Negative Crossover | Bearish
3. MA 50: 1.1121 | Positive Crossover | Bullish

Indicators

1. RSI: 54.28 | Buy Zone | Bullish
2. Stochastic: 49.14 | Buy Zone | Neutral

Key Levels

1. Resistance: R1: 1.1529 | R2: 1.1717
2. Support: S1: 1.0922 | S2: 1.0734

Market Sentiment:

Trade Suggestion (London/NY Traders):

Limit Buy: 1.1189 | Take Profit: 1.1375 | Stop Loss: 1.1081
GBP/USD Outlook: Pound Gains Ground on USD Weakness


Holding Firm Above 1.3350 During London Hours

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Dollar in Freefall: Euro, Pound, and Aussie Surge as Fed Dovish Tilt Sparks Forex Shake-Up.

EUR/USD: Euro Climbs on Dollar Weakness and Policy Divergence

Fundamental Overview

The euro gained further traction against the US Dollar during the UK and early US trading hours, with EUR/USD approaching the 1.1350 mark. The pair is finding support from persistent USD softness linked to trade tensions and deteriorating US fiscal credibility.

Traders in both the London and New York markets are now eyeing upcoming speeches from Federal Reserve and European Central Bank officials for clarity on monetary policy direction. The divergence remains a key driver:

 

1. ECB recently cut its deposit rate by 25 basis points to 2.25%.
2. Fed remains on hold but is expected to cut rates twice before year-end due to cooling inflation and slower growth.

The market’s muted reaction to the US-China trade truce reflects skepticism, especially since the agreement lacks enforceable mechanisms and still retains a 20% tariff on fentanyl-linked imports. This undermines optimism and reduces confidence in the Greenback’s rebound.

Technical Overview
https://www.trade2win.com/attachment...13-png.341679/

Moving Averages – Bullish Momentum
Exponential MA

 

1. MA 10: 1.1248 – Bullish
2. MA 20: 1.1244 – Bullish
3. MA 50: 1.1116 – Bullish

Simple MA

 

1. MA 10: 1.1213 – Bullish
2. MA 20: 1.1279 – Bullish
3. MA 50: 1.1130 – Bullish

Indicators

1. RSI: 57.23 – In buy zone
2. Stochastic Oscillator: 68.04 – Neutral to bullish

Support & Resistance

1. R1: 1.1529 | R2: 1.1717
2. S1: 1.0922 | S2: 1.0734

Overall Sentiment: Bullish
Market Direction: Buy

Trade Suggestion

 

1. Entry: Limit Buy at 1.1263
2. Take Profit: 1.1425
3. Stop Loss: 1.1168

GBP/USD: Sterling Soars to 3-Year High on Hotter UK Inflation
Fundamental Overview

FULL FOREX UPDATE - CAPITAL STREET FX

Dollar Weakens, EUR/USD and GBP/USD Surge Ahead of GDP and Retail Sales.

Major currency pairs are showing notable price action during Friday’s Asian session, driven by weakening US Dollar sentiment, evolving central bank outlooks, and critical economic indicators. For traders in the UK and USA, attention now turns to Germany’s Q1 GDP and the UK’s Retail Sales data, both due during the local morning and early trading hours. With volatility expected, the USD’s trajectory will also hinge on upcoming US housing data later in the New York session.
EUR/USD – Rebounds Above 1.1300 as Focus Shifts to German GDP



Fundamental Overview

EUR/USD is trading near 1.1310 during early Friday hours in Europe, recovering from Thursday’s 0.5% loss amid a broad USD retreat. The US Dollar is under pressure as Treasury yields decline; notably, the 30-year bond yield has fallen from a 19-month high of 5.15%.

Local traders in the UK and USA should monitor Germany’s Q1 GDP report, which is scheduled for 11:30 BST (06:30 EDT). This data is crucial for Eurozone outlook and may shape EUR/USD momentum into the European and US trading sessions.

Key factors driving EUR/USD today:

 

1. Weakening USD amid lower US Treasury yields.
2. Political risk: President Trump’s fiscal bill, expected to widen the US deficit, weighs on sentiment.
3. Eurozone flash PMIs show mixed performance, with German Services PMI dropping to 47.2.
4. US PMI data surprised to the upside, with all key components above 52.

Technical Overview
https://www.trade2win.com/proxy.php?...c515ad98acf658

Moving Averages

1. Exponential MAs:
2. MA 10: 1.1266 – Bullish
3. MA 20: 1.1254 – Bullish
4. MA 50: 1.1130 – Bullish
5. Simple MAs:
6. MA 10: 1.1225 – Bullish
7. MA 20: 1.1272 – Bullish
8. MA 50: 1.1147 – Bullish

Indicators

1. RSI: 56.02 – Buy Zone
2. Stochastic Oscillator: 76.87 – Neutral

Support & Resistance

1. Resistance: R1 – 1.1529 | R2 – 1.1717
2. Support: S1 – 1.0922 | S2 – 1.0734

Market Sentiment: Bullish
Trade Direction: Buy
Trade Suggestion:

 

1. Entry: 1.1262
2. Take Profit: 1.1384
3. Stop Loss: 1.1202

GBP/USD – Nears 39-Month High as Traders Eye UK Retail Sales
Fundamental Overview
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