Daily Forex Technical Analysis By Capital Street Fx

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Daily FX Analysis – GBP/USD drops, EUR/USD navigates, NZD/USD strengthens, USD/CHF soars.​

Introduction​

GBP/USD faces pressure, dropping towards 1.2650 after disappointing UK Retail Sales data. The pair grapples with a resurgent US Dollar and cautious market sentiment, awaiting crucial US data and Federal Reserve speeches. Meanwhile, EUR/USD remains stable below 1.0900, monitoring ECB President Lagarde’s speech. NZD/USD gains strength above 0.6100, while USD/CHF rises to nearly 0.8680 on SNB Chairman’s concerns about the appreciating Swiss Franc. Market dynamics continue to evolve as traders brace for upcoming economic indicators and central bank communications.

Markets In Focus Today – GBP/USD​

GBP/USD Drops Toward 1.2650 After UK Retail Sales Data.​

GBP/USD is dropping toward 1.2650, under intense selling pressure after the UK Retail Sales dropped more than expected in December. The pair is also feeling the heat from a pause in the US Dollar decline, as sentiment remains tepid ahead of top-tier US data, Fedspeak. GBP/USD reversed its direction after dipping below 1.2700 and closed in positive territory above 1.2750 on Thursday. The positive shift seen in risk mood supports the pair on Friday as markets await Producer Price Index (PPI) data from the US. Inflation figures provided a boost to the US Dollar (USD) with the initial reaction but they seemingly failed to persuade markets that the Federal Reserve (Fed) could refrain from lowering the policy rate in March.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.27 | Negative Crossover | Bearish
• MA 20 : 1.27 | Negative Crossover | Bearish
• MA 50 : 1.26 | Positive Crossover | Bullish

Simple :​

• MA 10 : 1.27 | Negative Crossover | Bearish
• MA 20 : 1.27 | Negative Crossover | Bearish
• MA 50 : 1.26 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 49.84 | Neutral Zone | Neutral

Stochastic Oscillator : 47.09 | Neutral Zone | Neutral

Resistance And Support Levels :​

• R1 : 1.28 R2 : 1.29
• S1 : 1.26 S2 : 1.25

Overall Sentiment : Neutral Market Direction : Buy​

Trade Suggestion : Limit Buy : 1.2655 | Take Profit : 1.2754 | Stop Loss : 1.2595

EUR/USD​

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Daily FX Analysis – EUR/USD, GBP/USD, AUD/USD, USD/JPY Dynamics.​

Introduction​

EUR/USD hovers near 1.0880, tracing the 38.2% Fibonacci level in the early European session, driven by a US Dollar retracement. Wednesday’s bullish momentum to 1.0930 retreated later as the USD rebounded. Investors await the ECB’s policy announcements. GBP/USD experiences a downturn after reaching a two-week high, currently trading around 1.2710. AUD/USD faces a second day of losses at 0.6570 amid an enhanced US Dollar, reacting to positive S&P PMI data. USD/JPY retreats from a one-week peak following the Bank of Japan’s hawkish stance.

Markets In Focus Today – EUR/USD​

EUR/USD Moves Lower To Near 1.0880 Followed By The 38.2% Fibonacci Level.​

EUR/USD traded lower near 1.0880 during the early European session on Thursday as the US Dollar makes efforts to retrace its recent losses. The 14-day Relative Strength Index (RSI) for the pair is positioned below the 50 mark, indicating a bearish momentum in the market. EUR/USD gathered bullish momentum and advanced to the 1.0930 area on Wednesday. With the US Dollar (USD) staging a rebound later in the day, the pair erased a large portion of its daily gains and returned below 1.0900. Investors await the European Central Bank’s (ECB) policy announcements and high-tier data releases from the US.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.09 | Negative Crossover | Bearish
• MA 20 : 1.09 | Negative Crossover | Bearish
• MA 50 : 1.09 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.09 | Negative Crossover | Bearish
• MA 20 : 1.09 | Negative Crossover | Bearish
• MA 50 : 1.09 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.69 | Buy Zone | Bullish

Stochastic Oscillator : 30.64 | Sell Zone | Neutral

Resistance And Support Levels :​

• R1 : 1.11 R2 : 1.12
• S1 : 1.08 S2 : 1.07

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.0913 | Take Profit: 1.0816 | Stop Loss: 1.0978

GBP/USD​

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Weekly FX Analysis – GBP/USD Swings, EUR/USD Challenges, AUD/USD Rebounds, USD/JPY Gains.​

Introduction​

GBP/USD retreated below 1.2750, reversing gains after soft US December core PCE inflation data. Despite the setback, the pair eyes marginal weekly gains. Meanwhile, EUR/USD stabilized near 1.0850 post-US inflation data, maintaining positive territory. AUD/USD recovered to 0.6600 on improved market sentiment ahead of US core PCE data, while USD/JPY aimed for the psychological resistance at 148.00, supported by Tokyo CPI slowing below the BoJ’s 2.0% target.

Markets In Focus Today – GBP/USD​

GBP/USD Retreats Below 1.2750, And Looks To Post Small Weekly Gains.​

GBP/USD lost its traction and retreated below 1.2730 after rising above 1.2750 on soft US December core PCE inflation data in the early American session on Friday. Every week, GBP/USD remains on track to post marginal gains. GBP/USD lost its traction and dropped below 1.2700 in the early trading hours of the European session on Friday. Although the near-term technical outlook is yet to highlight a build-up of bearish momentum, buyers could remain discouraged unless the pair manages to reclaim 1.2700. Upbeat macroeconomic data releases from the US provided a boost to the US Dollar (USD) during the American session on Thursday.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.27 | Negative Crossover | Bearish
• MA 20 : 1.27 | Negative Crossover | Bearish
• MA 50 : 1.26 | Positive Crossover | Bullish

Simple :​

• MA 10 : 1.27 | Positive Crossover | Bullish
• MA 20 : 1.27 | Negative Crossover | Bearish
• MA 50 : 1.27 | Positive Crossover | Bullish

RSI (Relative Strength Index): 51.13 | Buy Zone | Bullish

Stochastic Oscillator : 59.44 | Buy Zone | Neutral

Resistance And Support Levels :​

• R1 : 1.28 R2 : 1.29
• S1 : 1.26 S2 : 1.25

Overall Sentiment: Bullish Market Direction*: Buy*​

Trade Suggestion: Limit Buy: 1.2622 | Take Profit : 1.2799 | Stop Loss : 1.2524

EUR/USD​

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Weekly FX Analysis – Stay updated on Forex amid economic uncertainty.​

Introduction​

GBP/USD rebounded from session lows, hovering below 1.2600 after a dip to 1.2550 post-stronger-than-expected US producer inflation data. The pair faced resistance amid cautious market sentiment. Meanwhile, EUR/USD held above 1.0750 following US data, signaling consolidation. AUD/USD aimed for positive territory, buoyed by Wall Street’s surge, while USD/JPY consolidated below 150.50, influenced by firmer USD and BoJ Ueda’s speech impact. Japanese Yen strength persisted amid doubts about BoJ’s early policy shift due to the unexpected Q4 GDP contraction.

Markets In Focus Today – GBP/USD​

GBP/USD Rebounds From Session Lows, And Trades Below 1.2600.​

GBP/USD erased much of its daily losses after dropping to 1.2550 following the stronger-than-forecast US producer inflation data. However, with markets turning cautious in the American session, the pair struggles to reclaim 1.2600. 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 : 1.2611 | Negative Crossover | Bearish
• MA 20 : 1.2634 | Negative Crossover | Bearish
• MA 50 : 1.2631 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.2598 | Positive Crossover | Bullish
• MA 20 : 1.2648 | Negative Crossover | Bearish
• MA 50 : 1.2675 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.8213 | Neutral Zone | Neutral

Stochastic Oscillator : 27.2727 | 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: 1.2620 | Take Profit: 1.2574 | Stop Loss: 1.2531

EUR/USD​

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