Forex Technical Analysis By Capital Street fx

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Daily FX Analysis – USD/JPY faces uncertainty, NZD concerns post-Chinese PMI.​

Introduction​

EUR/USD grapples near 1.0800 amidst Fed-induced US Dollar strength, with Chair Powell’s insistence on inflation aligning with the 2% target bolstering the greenback. As the market eyes EU inflation data, the pair faces renewed selling pressure, testing the 1.0800 support. Meanwhile, USD/CHF improves post-Powell’s rejection of a March rate cut, and USD/JPY struggles amid geopolitical risks and diminished prospects for a March Fed rate cut. NZD/USD edges higher post-Chinese PMI but contends with concerns over China’s economic slowdown and geopolitical uncertainties.

Markets In Focus Today – EUR/USD​

EUR/USD Struggles Near 1.0800 On Fed-Led US Dollar Strength.​

EUR/USD is battling 1.0800, consolidating the previous decline. Fed Chair Powell highlighted the need for inflation figures to reflect the Fed’s 2% ceiling, pushing back against early rate cut expectations and boosting the US Dollar. The focus now shifts to the EU inflation data. The bullish momentum in the US dollar sparked renewed selling momentum in EUR/USD, dragging it to the lower end of the weekly range near the 1.0800 region. Moving forward, investors’ debate is still expected to keep the door open to the first interest rate cut in March or May, with the probability of those outcomes at around 36% and 58%, respectively, according to Fed Watch Tool by CME Group.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.08 | 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): 37.09 | Sell Zone | Bearish

Stochastic Oscillator : 12.69 | Sell Zone | Negative

Resistance And Support Levels :​

• R1 : 1.10 R2 : 1.10
• S1 : 1.08 S2 : 1.07

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.0820 | Take Profit: 1.0733 | Stop Loss: 1.0873

USD/CHF​

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Daily Index Analysis – Dow soars, S&P teeters, FTSE optimistic, DAX fears.​

Introduction:​

In the global indices market, Asian markets show a varied performance with disappointing Chinese economic data, while European markets display a mixed trend ahead of the Federal Reserve decision. The US stocks, particularly the Nasdaq, face a subdued atmosphere as investors await corporate earnings and the outcome of the Fed’s monetary policy meeting.

Market In Focus For Today – Dow Jones​

Dow Jones advances, propelled by the robust showing of financial stocks.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38542.06 | Positive Crossover | Bullish
• MA 20: 38263.37 | Positive Crossover | Bullish
• MA 50: 37971.07 | Positive Crossover | Bullish

Simple:​

• MA 5: 38537.01 | Positive Crossover | Bullish
• MA 20: 38263.17| Positive Crossover | Bullish
• MA 50: 37972.07 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 73.34| Buy Zone| Bullish

Stochastic Oscillator: 100.00| Buy Zone | Neutral

Resistance And Support Levels:​

• R1: 38055.00 | R2: 38682.50
• S1: 37578.97| S2: 37124.57

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 37990.09 | Take Profit: 38682.50| Stop Loss: 37557.33.

S&P 500:​

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Post automatically merged: Feb 2, 2024

Daily Index Analysis – Nasdaq revival, S&P drop, FTSE boost, DAX impacted.​

Introduction:​

Amidst the global indices landscape, Asian stocks grapple with uncertainty as the Federal Reserve minimizes the possibility of early rate cuts. Shanghai Composite and Singapore MSCI record declines, while Hong Kong’s Hang Seng Index sees an uptick. European stocks dropped ahead of the Fed decision, with Germany’s DAX and France’s CAC 40 facing losses. Wall Street concludes January on a downturn after the Fed maintains interest rates, dispelling hopes for a March rate cut, prompting a decline in U.S. stocks.

Market In Focus For Today – Nasdaq 100​

The NASDAQ 100 experienced a slight decline in Wednesday’s trading session but reversed course, displaying signs of revival.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 17367.19 | Negative Crossover | Bearish
• MA 20: 17534.54 | Negative Crossover | Bearish
• MA 50: 17289.55 | Positive Crossover | Bullish

Simple:​

• MA 5: 17351.12 | Negative Crossover | Bearish
• MA 20: 17534.54| Negative Crossover | Bearish
• MA 50: 17289.55 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 45.04| Buy Zone| Bullish

Stochastic Oscillator: 8.88| Sell Zone | Positive

Resistance And Support Levels:​

• R1: 17506.01 | R2: 17798.84
• S1: 17163.18| S2: 16784.64

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 17191.75 | Take Profit: 17506.01| Stop Loss: 16998.91.

S&P 500:​

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Daily FX Analysis – GBP, EUR, NZD, AUD trends, NFP impact.​

Introduction​

GBP/USD hesitates around the mid-1.2700s following a robust post-BoE rebound, as the pair struggles to extend gains amid a narrow trading range. The US Dollar’s strength, fueled by Fed Chair Powell’s comments, impacts major currencies. EUR/USD advances towards 1.0900 in a positive market mood, while NZD/USD and AUD/USD show resilience on improved data and favorable economic conditions. Investors await the US Nonfarm Payrolls (NFP) data for further market direction.

Markets In Focus Today – GBP/USD​

GBP/USD Pauses The Post-BoE Rally Near Mid-1.2700s Ahead Of US NFP.​

The GBP/USD pair struggles to capitalize on the previous day’s solid recovery of around 130 pips from the 1.2625 area, or over a two-week low, and oscillates in a narrow band during the early European session on Friday. After closing the second consecutive day in negative territory on Wednesday, GBP/USD continued to edge lower early Thursday and was last seen trading at around 1.2650. Although the technical outlook points to a bearish tilt in the near term, the pair faces a two-way risk heading into the Bank of England’s (BoE) policy announcements. The US Dollar started to gather strength late Wednesday after Federal Reserve (Fed) Chairman Jerome Powell said that he doesn’t think that a rate reduction in March is the base case scenario.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

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

Simple :​

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

RSI (Relative Strength Index): 57.79 | Buy Zone | Bullish

Stochastic Oscillator : 72.42 | Buy Zone | Neutral

Resistance And Support Levels :​

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

Overall Sentiment: Bullish Market Direction: Buy​

Trade Suggestion: Limit Buy: 1.2715 | Take Profit: 1.2793 | Stop Loss: 1.2663

EUR/USD​

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Daily Index Analysis – Dow, S&P resilient, Euro mirrors triumph.​

Introduction:​

In the world of indices, Asian shares predominantly climb as Wall Street bounces back, fuelled by the technology sector’s resilience. European stocks experience a surge amid ongoing impressive corporate earnings. Meanwhile, U.S. stocks rebound following the Federal Reserve’s letdown and strong earnings from major tech firms, reversing the prior session’s sell-off.

Market In Focus For Today – Dow Jones​

The Dow Jones rises on surprise jobless claims.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38557.13 | Positive Crossover | Bullish
• MA 20: 38369.54 | Positive Crossover | Bullish
• MA 50: 38045.55 | Positive Crossover | Bullish

Simple:​

• MA 5: 38498.00 | Positive Crossover | Bullish
• MA 20: 38368.23| Positive Crossover | Bullish
• MA 50: 38045.55 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 64.54| Buy Zone| Bullish

Stochastic Oscillator: 55.66| Buy Zone | Positive

Resistance And Support Levels:​

• R1: 38717.50 | R2: 39266.49
• S1: 38052.05| S2: 37369.97

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38235.05 | Take Profit: 38717.50| Stop Loss: 37885.69.

S&P 500:​

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Weekly FX Analysis – GBP/USD crashes, EUR/USD battles, AUD/USD tumbles.​

Introduction​

GBP/USD faces a downturn, hitting daily lows near 1.2650, influenced by heightened selling pressure and a robust US jobs report bolstering the USD. Meanwhile, EUR/USD reacts to the NFP, losing key technical support. The AUD/USD tumbles post-jobs report, with the RBA’s decision and upcoming economic data crucial for its trajectory. USD/JPY soars to new highs, propelled by strong US employment data, as focus shifts to the BoJ’s potential rate changes in March. The week ahead includes key events like RBA’s decision, USD data releases, and developments in USD/JPY.

Markets In Focus Today – GBP/USD​

GBP/USD Plummets To Daily Lows Near 1.2650.​

The selling pressure in the risk complex gathers extra steam and forces GBP/USD to drop to the lower end of the daily range near 1.2650. The impressive January jobs report from the US provides a boost to the USD ahead of the weekend. GBP/USD gathered bullish momentum and closed in positive territory on Thursday after dipping below 1.2650 with the immediate reaction to the Bank of England’s (BoE) policy announcements. The pair holds its ground in the European session on Friday and trades modestly higher on the day above 1.2750. The BoE maintained the bank rate at 5.25%, as expected, following the first policy meeting of the year.

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 | Negative Crossover | Bearish

Simple :​

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

RSI (Relative Strength Index): 43.61 | Neutral Zone | Neutral

Stochastic Oscillator : 49.57 | Buy Zone | Negative

Resistance And Support Levels :​

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

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Stop Sell: 1.2612 | Take Profit: 1.2500 | Stop Loss: 1.2706

EUR/USD​

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Weekly Index Analysis – Dow Soars, S&P Records, FTSE Struggles.​

Introduction:​

Asian stocks are poised for a weekly gain, with attention focused on the upcoming US inflation test. The Shanghai composite has risen by 0.14%. Across the region, the Singapore MSCI is up 0.76% at 279.55. European equities have reached a two-year peak, driven by positive economic indicators and strong earnings reports. On Wall Street, there is an uptrend fueled by robust GDP data. The strong start to the year for the US stock market faces a significant challenge next week, with a busy schedule featuring major tech earnings, the Federal Reserve’s monetary policy meeting, and the eagerly awaited employment report.

Market In Focus For The Next Week – Dow Jones​

The Dow Jones advanced amid a broad rally in the equity markets.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38642.70 | Positive Crossover | Bullish
• MA 20: 38425.32 | Positive Crossover | Bullish
• MA 50: 38077.36 | Positive Crossover | Bullish

Simple:​

• MA 5: 38647.07 | Positive Crossover | Bullish
• MA 20: 38425.37| Positive Crossover | Bullish
• MA 50: 38077.31 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 65.09| Buy Zone| Bullish

Stochastic Oscillator: 46.24| Buy Zone |Positive

Resistance And Support Levels:​

• R1: 38889.50 | R2: 39572.98
• S1: 38073.74| S2: 37280.02

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38139.88 | Take Profit: 38889.50| Stop Loss: 37698.93.

S&P 500:​

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Daily FX Analysis – GBP/USD falls, EUR/USD fights, AUD/USD fluctuates, USD/JPY rises.​

Introduction​

GBP/USD faces a decline, reaching 1.2610, as the US Dollar gains strength on robust jobs data, reducing the likelihood of a Fed rate cut in March. Meanwhile, EUR/USD struggles below 1.0800 amid sustained USD strength, while AUD/USD recovers from a three-month low, supported by positive economic data. In contrast, USD/JPY sees a rally to a two-month peak, propelled by rising US bond yields and the BoJ’s hawkish stance amidst geopolitical concerns.

Markets In Focus Today – GBP/USD​

GBP/USD Extends Losses To Near 1.2610 As The Fed Rate Cut In March Appears Unlikely.​

GBP/USD lost ground as US Dollar surged after blockbuster US jobs data. Fed Chair Jerome Powell reiterated that the March meeting is too soon to start rate cuts. BoE’s Huw Pill mentioned that the right time for the rate cuts is probably still some time away. GBP/USD continues its decline for the second consecutive session, edging lower to around 1.2610 during the Asian trading hours on Monday. The Pound Sterling (GBP) faces challenges as the US Dollar (USD), measured by the US Dollar Index (DXY), reaches an eight-week high. This strength in the USD is fueled by positive market sentiment as a March rate cut by the Federal Reserve appears unlikely. The sentiment is based on a promising labor market report released on Friday.

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 | Negative Crossover | Bearish

Simple :​

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

RSI (Relative Strength Index): 41.76 | Neutral Zone | Neutral

Stochastic Oscillator : 36.14 | Sell Zone | Negative

Resistance And Support Levels :​

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

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.2632 | Take Profit: 1.2545 | Stop Loss: 1.2693

EUR/USD​

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Daily Index Analysis – Dow steady, S&P breaks, FTSE rises.​

Introduction:​

In the Asian indices market, stocks face a general decline, notably in China, despite market support efforts. Meanwhile, European shares edge higher driven by positive earnings. The DAX in Germany, CAC 40 in France, and UK 100 show modest gains. U.S. stock futures remain steady, with minimal changes, ahead of a busy week of corporate earnings, influenced by Federal Reserve Chair Jerome Powell’s cautious remarks on interest rate cuts.

Market In Focus For Today – Dow Jones​

The Dow Jones futures are steady, and McDonald’s earnings are ahead.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38654.13 | Positive Crossover | Bullish
• MA 20: 38475.00 | Positive Crossover | Bullish
• MA 50: 38113.96 | Positive Crossover | Bullish

Simple:​

• MA 5: 38660.00 | Positive Crossover | Bullish
• MA 20: 38476.12| Positive Crossover | Bullish
• MA 50: 38114.05 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 61.23| Buy Zone| Bullish

Stochastic Oscillator: 47.66| Buy Zone | Neutral

Resistance And Support Levels:​

• R1: 38900.79 | R2: 39472.96
• S1: 38233.23| S2: 37364.99

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38283.46 | Take Profit: 38900.79| Stop Loss: 37937.15.

S&P 500:​

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Daily FX Analysis – EUR/USD, GBP/USD, USD/CAD, USD/CHF trends.​

Introduction​

EUR/USD holds onto recovery gains near 1.0750, buoyed by positive German data, while the USD retreats from its recent multi-week high. In contrast, GBP/USD rebounds toward 1.2600 amid an overall weakened US Dollar. USD/CAD snaps a two-day winning streak above 1.3500, facing resistance ahead of Canadian PMI data. USD/CHF maintains below 0.8700 as the Swiss Franc potentially benefits from an improved 10-year Swiss bond yield, following Federal Reserve Chair Jerome Powell’s dismissal of a March rate cut.

Markets In Focus Today – EUR/USD​

EUR/USD Clings To Recovery Gains Near 1.0750 On Upbeat German Data.​

EUR/USD trades in positive territory near 1.0750 in the European session on Tuesday as the USD retreats from the multi-week high it set on Monday. The data from Germany showed that Factory Orders rose 2.7% in December, supporting the Euro. In two consecutive sessions, EUR/USD broke below the key 200-day SMA (1.0836) and the provisional 100-day SMA (1.0783), reaching levels last seen in early December near 1.0720 on Monday. On the opposite side of the equation, the USD Index (DXY) saw its upside bias strongly reinvigorated as investors kept assessing another firm monthly job creation, as per Friday’s Nonfarm Payrolls (+353K), along with hawkish remarks from Chief Powell at his interview on CBS released over the weekend.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.0815 | Negative Crossover | Bearish
• MA 20 : 1.0852 | Negative Crossover | Bearish
• MA 50 : 1.0868 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.0823 | Negative Crossover | Bearish
• MA 20 : 1.0867 | Negative Crossover | Bearish
• MA 50 : 1.0902 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.0641 | Sell Zone | Bearish

Stochastic Oscillator : 9.8014 | Sell Zone | Negative

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: 1.0779 | Take Profit: 1.0719 | Stop Loss: 1.0825

GBP/USD​

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Daily Index Analysis – China’s surge, Powell’s hints propel markets, Nasdaq rises.​

Introduction:​

In the indices market, Asian performances are mixed, with China rising after a state fund announced its intent to purchase stocks. The Shanghai composite is up by 3.23%, while European stocks declined due to dashed rate cut expectations leading to higher yields. U.S. stocks also face a downturn as Treasury yields rise following Powell’s suggestion that a March rate cut is improbable.

Market In Focus For Today – Nasdaq 100​

Currently, the NASDAQ 100 lingers near the upper limit of a consolidation range. Sustaining and cultivating upward momentum requires a revival of enthusiasm among traders, a recurring pattern evident in historical market behavior.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 17693.47 | Positive Crossover | Bullish
• MA 20: 17573.28 | Positive Crossover | Bullish
• MA 50: 17430.18 | Positive Crossover | Bullish

Simple:​

• MA 5: 17704.24 | Positive Crossover | Bullish
• MA 20: 17573.20| Positive Crossover | Bullish
• MA 50: 17430.15 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 58.59| Buy Zone| Bullish

Stochastic Oscillator: 95.52| Buy Zone | Neutral

Resistance And Support Levels:​

• R1: 17761.54 | R2: 17962.58
• S1: 17495.17| S2: 17263.98

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 17510.25 | Take Profit: 17761.54| Stop Loss: 17369.53.

S&P 500:​

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Daily FX Analysis – EUR strong, USD paused, JPY struggles, AUD surges.​

Introduction​

EUR/USD holds steady above 1.0750 amidst a weakening US Dollar and market optimism, brushing off mixed German data. Despite a negative start to the week, the pair found stability amid shifting sentiments. Meanwhile, USD/CHF paused after a two-day winning streak, influenced by improved Swiss bond yields. The Japanese Yen struggles against the USD due to hawkish Fed expectations and potential BoJ policy changes. The Australian Dollar gains ground on a weaker US Dollar, fueled by the RBA’s hawkish remarks and Powell’s emphasis on monitoring inflation. Fed speeches remain in focus for further market direction.

Markets In Focus Today – EUR/USD​

EUR/USD Trades Firmer Above 1.0750 After German Data.​

EUR/USD is holding the fort above 1.0750 in European trading on Wednesday. The pair cheers a continued US Dollar pullback and the market’s optimism. The Euro shrugs off mixed German Industrial Production data. Fedspeak is next in focus. Following a negative start to the week, EUR/USD extended that pessimism and kept the trade near recent YTD lows in the 1.0725/20 band on turnaround Tuesday. The pair’s bearish price action was accompanied by a vacillating mood surrounding the greenback against the backdrop of some small corrections in US yields across various maturities.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.0807 | Negative Crossover | Bearish
• MA 20 : 1.0844 | Negative Crossover | Bearish
• MA 50 : 1.0864 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.0811 | Negative Crossover | Bearish
• MA 20 : 1.0856 | Negative Crossover | Bearish
• MA 50 : 1.0898 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.9615 | Sell Zone | Bearish

Stochastic Oscillator : 15.8181 | 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: 1.0782 | Take Profit: 1.0722 | Stop Loss: 1.0822

USD/CHF​

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Daily Index Analysis – Dow stumbles, S&P steady, Global indices react.​

Introduction:​

In the global indices market, Asian stocks forge ahead, closely tied to China’s stability measures. However, the Shanghai composite faces a 1.44% decline. European markets, on the other hand, experienced a downturn due to dashed hopes of a rate cut, leading to increased yields. Simultaneously, stock futures worldwide exhibit minimal shifts as investors scrutinize the latest quarterly results during the midpoint of the corporate earnings season.

Market In Focus For Today – Dow Jones​

On Monday, stocks declined as a surge in Treasury yields raised worries about the Federal Reserve potentially not implementing as significant rate cuts as anticipated. The Dow Jones Industrial Average dropped 274.30 points, or 0.71%, to settle at 38,380.12.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38586.80 | Positive Crossover | Bullish
• MA 20: 38544.28 | Positive Crossover | Bullish
• MA 50: 38215.44 | Positive Crossover | Bullish

Simple:​

• MA 5: 38552.01 | Positive Crossover | Bullish
• MA 20: 38544.20| Positive Crossover | Bullish
• MA 50: 38215.44 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 58.24| Buy Zone| Bullish

Stochastic Oscillator: 48.15| Buy Zone | Positive

Resistance And Support Levels:​

• R1: 38789.90 | R2: 39238.10
• S1: 38279.45| S2: 37831.25

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38341.70 | Take Profit: 38789.90| Stop Loss: 38042.90.

S&P 500:​

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Daily FX Analysis – AUD Stable, USD/JPY, NZD, GBP Rise.​

Introduction​

The GBP/USD pair edges higher to 1.2630 in the early Asian session, supported by a weaker USD and increased UK house prices, indicating confidence that the Bank of England may not cut interest rates soon. Meanwhile, AUD/USD maintains gains above 0.6500 on mixed Chinese inflation data. NZD/USD holds positive ground above 0.6100 after strong New Zealand Q4 labor market data, suggesting potential further Reserve Bank of New Zealand policy tightening. USD/JPY sees modest gains above 148.00 amid dovish BoJ comments, while the Japanese Yen struggles amid declining real wages and household spending.

Markets In Focus Today – GBP/USD​

GBP/USD Drifts Higher To 1.2630 On Weaker USD, UK Higher House Prices.​

The GBP/USD pair gained traction during the early Asian session on Thursday. The uptick in the major pair is bolstered by rising house prices in the UK, which supported bets that the Bank of England was not likely to cut interest rates soon. GBP/USD benefited from the improving risk mood on Tuesday and gained 0.5%, erasing a large portion of Monday’s losses in the process. Early Wednesday, the pair trades marginally higher on the day above 1.2600. Market participants will keep an eye on risk perception mid-week. According to the latest news, Qatar, acting as a mediator, said that Hamas had given a “generally positive” response to a proposed truce deal with Israel.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.2645 | Negative Crossover | Bearish
• MA 20 : 1.2664 | Negative Crossover | Bearish
• MA 50 : 1.2640 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.2655 | Negative Crossover | Bearish
• MA 20 : 1.2678 | Negative Crossover | Bearish
• MA 50 : 1.2675 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.6354 | Buy Zone | Bullish

Stochastic Oscillator : 38.9323 | Sell Zone | Positive

Resistance And Support Levels :​

• R1 : 1.2762 R2 : 1.2806
• S1 : 1.2617 S2 : 1.2573

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.2658 | Take Profit: 1.2558 | Stop Loss: 1.2727

AUD/USD​

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Daily Index Analysis – Nasdaq soars, S&P breaks records.​

Introduction:​

Global markets show mixed performance as Asian stocks rise, led by SoftBank boosting Japan’s rally while China faces a slowdown. European stocks decline, influenced by drops in the oil, mining, and retail sectors. In the US, stocks climb amid positive earnings and Federal Reserve comments on interest rates, creating a varied landscape in the indices market.

Market In Focus For Today – Nasdaq 100​

The NASDAQ 100 experienced a slight rally leading into Wednesday’s cash session, reflecting ongoing upward pressure in the market.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 17751.41 | Positive Crossover | Bullish
• MA 20: 17268.02 | Positive Crossover | Bullish
• MA 50: 17536.51 | Positive Crossover | Bullish

Simple:​

• MA 5: 17746.95 | Positive Crossover | Bullish
• MA 20: 17628.20| Positive Crossover | Bullish
• MA 50: 17536.09 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 64.51| Buy Zone| Bullish

Stochastic Oscillator: 96.08| Buy Zone | Positive

Resistance And Support Levels:​

• R1: 17860.96 | R2: 18264.31
• S1: 17444.59| S2: 17041.24

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 17392.55 | Take Profit: 17860.96| Stop Loss: 17132.32.

S&P 500:​

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Daily FX Analysis – GBP/USD, EUR/USD, AUD/USD, and USD/CAD.​

Introduction​

GBP/USD steadies above 1.2600, showing resilience despite a softer USD. The pair struggles to extend gains from the 1.2570 region, maintaining a narrow range in early European trading. While upbeat US labor market figures lifted the Greenback, the Bank of England’s stance on delaying rate cuts may limit further losses. EUR/USD faces resistance near 1.0800 and the 100-day SMA, maintaining a struggle to break through. The pair hovers around 1.0770, influenced by a late loss of USD momentum and comments from ECB’s Robert Holzmann. AUD/USD trades near 0.6500 after RBA Bullock’s testimony, facing limited upside amid cautious market sentiment. USD/CAD rebounds near 1.3460 on lower crude prices and market caution amid Middle East tensions.

Markets In Focus Today – GBP/USD​

GBP/USD Holds Steady Above 1.2600, Bulls Seem Non-Committed Despite A Softer USD.​

The GBP/USD struggles to capitalize on the previous day’s goodish bounce of around 50 pips from the 1.2570 region and oscillates in a narrow band during the early European trading hours on Friday. Spot prices trade near the top end of the weekly range, around the 1.2620 area. On Thursday, the GBP/USD pair declined towards the 1.2615 level showing slight losses with upbeat US labor market figures benefiting the Greenback with Jobless claims from the week ending on February 3 coming in lower than expected. However, the Bank of England (BoE) holds a somewhat similar stance as the Federal Reserve (Fed) in delaying rate cuts so the losses may be limited.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.2637 | Negative Crossover | Bearish
• MA 20 : 1.2658 | Negative Crossover | Bearish
• MA 50 : 1.2638 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.2645 | Negative Crossover | Bearish
• MA 20 : 1.2671 | Negative Crossover | Bearish
• MA 50 : 1.2673 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.8720 | Neutral Zone | Neutral

Stochastic Oscillator : 38.8021 | Sell Zone | Positive

Resistance And Support Levels :​

• R1 : 1.2762 R2 : 1.2806
• S1 : 1.2617 S2 : 1.2573

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.2632 | Take Profit: 1.2566 | Stop Loss: 1.2682

EUR/USD​

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Daily Index Analysis – Dow, S&P, FTSE, Euro & Asian.​

Introduction:​

In the global indices market, Asian markets showcase positive momentum following Wall Street’s overnight gains. Meanwhile, European shares encountered a downturn, led by declining bank and energy stocks. Key futures contracts indicate mixed sentiments, with the DAX slightly up, the CAC 40 down, and the UK 100 holding a modest gain. On Wall Street, indexes maintain near-record levels as investors react to earnings reports, robust U.S. job data, and a strengthening U.S. dollar, particularly the S&P nearing the noteworthy 5,000-point mark.

Market In Focus For Today – Dow Jones​

The Dow Jones index rebounded from its intraday lows, buoyed by a robust surge in Disney stock.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38731.75 | Positive Crossover | Bullish
• MA 20: 38641.15 | Positive Crossover | Bullish
• MA 50: 38733.51 | Positive Crossover | Bullish

Simple:​

• MA 5: 38710.07 | Positive Crossover | Bullish
• MA 20: 38640.10| Positive Crossover | Bullish
• MA 50: 38777.00 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 64.83| Buy Zone| Bullish

Stochastic Oscillator: 94.74| Buy Zone | Neutral

Resistance And Support Levels:​

• R1: 38852.75 | R2: 39229.46
• S1: 38430.09| S2: 37989.06

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38466.84 | Take Profit: 38852.75| Stop Loss: 38227.95.

S&P 500:​

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Weekly FX Analysis – GBP/EUR steady, AUD/USD, USD/JPY volatile.​

Introduction​

GBP/USD remains resilient above 1.2600 as the US Dollar struggles to gain strength amid lower-than-expected CPI revisions. After briefly dipping below 1.2600 on Thursday, the pair stabilized, influenced by hawkish Bank of England comments and improved risk sentiment. Meanwhile, EUR/USD inches higher near 1.0800 after US CPI revisions, maintaining a sideways trend. The Australian Dollar hovers around 0.6500, supported by RBA Governor Bullock’s commitment to managing inflation. USD/JPY approaches 150.00 as the focus shifts to US inflation data, with Fed policymakers maintaining a hawkish stance.

Markets In Focus Today – GBP/USD​

GBP/USD Holds Above 1.2600 As USD Fails To Gather Strength.​

GBP/USD continued to fluctuate above 1.2600 on Friday as the US Dollar found it difficult to stay resilient against its major rivals. The data from the US showed that the monthly CPI increase for December was revised lower to 0.2% from 0.3%. GBP/USD declined below 1.2600 on Thursday but managed to stabilize above that level early Friday. In the absence of high-tier data releases, the risk perception could impact the US Dollar’s (USD) valuation. The USD benefited from recovering US Treasury bond yields on Thursday and weighed on GBP/USD. Hawkish remarks from Bank of England (BoE) officials and the modest improvement seen in risk mood, however, helped the pair erase its losses.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.2639 | Negative Crossover | Bearish
• MA 20 : 1.2659 | Negative Crossover | Bearish
• MA 50 : 1.2638 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.2646 | Negative Crossover | Bearish
• MA 20 : 1.2671 | Negative Crossover | Bearish
• MA 50 : 1.2673 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.0589 | Buy Zone | Bullish

Stochastic Oscillator : 40.2344 | Neutral Zone | Positive

Resistance And Support Levels :​

• R1 : 1.2762 R2 : 1.2806
• S1 : 1.2617 S2 : 1.2573

Overall Sentiment: Bearish Market Direction: Sell​

Trade Suggestion: Limit Sell: 1.2643 | Take Profit: 1.2516 | Stop Loss: 1.2731

EUR/USD​

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Weekly Index Analysis – Tokyo soars, Europe slumps. Wall Street triumphs.​

Introduction:​

In the dynamic world of global indices, Friday saw a surge in Asian stocks, notably Tokyo’s index hitting a 34-year high. Meanwhile, European markets faced a third consecutive decline, but Wall Street celebrated as the S&P 500 triumphantly closed above 5,000, setting a new record and ending the week on a high note.

Market In Focus For The Next Week – Dow Jones​

On Friday, Dow Jones experienced a decline, as there was a lack of buyer interest in defensive sectors.

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38736.46 | Negative Crossover | Bearish
• MA 20: 38665.22 | Positive Crossover | Bullish
• MA 50: 38400.36 | Positive Crossover | Bullish

Simple:​

• MA 5: 38739.85 | Negative Crossover | Bearish
• MA 20: 38665.22| Positive Crossover | Bullish
• MA 50: 38400.31 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 56.95| Buy Zone| Bullish

Stochastic Oscillator: 74.38| Buy Zone | Positive

Resistance And Support Levels:​

• R1: 38950.97 | R2: 39512.70
• S1: 38223.27| S2: 37355.15

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38299.87 | Take Profit: 38950.97| Stop Loss: 37891.34.

S&P 500:​

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Daily FX Analysis – Forex markets await key events amid speculation.​

Introduction​

The EUR/USD pair hovers around 1.0800, with attention on the ZEW survey and US CPI data. ECB’s Panetta hints at a potential rate cut, while the Fed considers economic data before adjusting rates. Meanwhile, GBP/USD sees modest gains, and the US Dollar struggles amid uncertainty. The Australian Dollar strengthens on risk-on sentiment, and the Japanese Yen remains subdued post-national holiday, influenced by BoJ’s dovish remarks. Traders await key US inflation figures.

Markets In Focus Today – EUR/USD​

EUR/USD Gains Ground Near 1.0800, ZEW Survey, US CPI Data Eyed.​

EUR/USD holds positive ground around 1.0795 on the consolidation of USD.ECB’s Panetta said the moment is fast approaching for the ECB to cut rates, gradual steps might help to mitigate the volatility on markets. Many Fed officials agreed that the FOMC may review further economic data before lowering interest rates. The EUR/USD pair attracts some buyers near 1.0800 during the early Asian trading hours on Monday. Despite the lack of major US data releases last week, many Federal Reserve (Fed) officials and European Central Bank (ECB) policymakers will provide insight into the interest rate outlook later this week. The US inflation and Retail Sales for January will be the highlights this week. At press time, the major pair is trading at 1.0795, gaining 0.07% on the day.

Technical Overview With Chart :​

Moving Averages :​

Exponential :​

• MA 10 : 1.0797 | Negative Crossover | Bearish
• MA 20 : 1.0829 | Negative Crossover | Bearish
• MA 50 : 1.0855 | Negative Crossover | Bearish

Simple :​

• MA 10 : 1.0794 | Negative Crossover | Bearish
• MA 20 : 1.0831 | Negative Crossover | Bearish
• MA 50 : 1.0893 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.4182 | Neutral Zone | Neutral

Stochastic Oscillator : 29.6279 | 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: 1.0804 | Take Profit: 1.0732 | Stop Loss: 1.0854

GBP/USD​

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Daily Index Analysis – S&P 500 breaks records, cautious markets.​

Introduction:​

In the global indices market, Asian stocks show little movement amid reduced trading activity due to holidays. Shanghai composite gains 1.28%, Singapore MSCI rises 0.84%, while Hong Kong’s Hang Seng Index dips 0.83%. European stocks edge higher cautiously, with Germany’s DAX and France’s CAC 40 futures up. Meanwhile, U.S. stock futures remain stable after a record-setting week for the S&P 500.

Market In Focus For Today – Dow Jones​

Early on Monday, U.S. stock futures remained close to the neutral zone. Dow Jones Industrial Average futures experienced a slight decline of 30 points or 0.1%

TECHNICAL OVERVIEW:​

Moving Averages:​

Exponential:​

• MA 5: 38730.75 | Negative Crossover | Bearish
• MA 20: 38674.15 | Positive Crossover | Bullish
• MA 50: 38744.51 | Negative Crossover | Bearish

Simple:​

• MA 5: 38763.03 | Positive Crossover | Bullish
• MA 20: 38674.62| Positive Crossover | Bullish
• MA 50: 38745.00 | Positive Crossover | Bullish
  

RSI (Relative Strength Index): 56.05| Buy Zone| Bullish

Stochastic Oscillator: 32.81| Sell Zone | Negative

Resistance And Support Levels:​

• R1: 38881.95 | R2: 39302.16
• S1: 38409.22| S2: 37915.47

Overall Sentiment: Bullish | Market Direction: Buy​

Trade Suggestion: Limit Buy: 38461.74 | Take Profit: 38881.95| Stop Loss: 38220.12.

S&P 500:​

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