Daily Analysis By FXGlory

[FXGlory]

NZDUSD H4 Technical and Fundamental Analysis for 10.09.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:

The NZD/USD forex trading pair, also known as the "Kiwi," always has its fundamental outlook heavily influenced by factors from both the New Zealand and U.S. economies. For the NZD/USD news analysis today, traders are focused on speeches by key Federal Reserve members such as Philip Jefferson and Raphael Bostic. Any hawkish tone could further strengthen the U.S. dollar, applying pressure on the NZD/USD forecast today. Additionally, the Reserve Bank of New Zealand (RBNZ) interest rate policy, along with global risk sentiment, particularly commodity prices, plays a crucial role in driving the Kiwi. Rising interest rates in the U.S. can create a widening yield differential, pushing the pair lower. Meanwhile, data on U.S. crude inventories and wholesale inventories can influence broader USD demand, affecting the pair's movements.


Price Action:

The NZD/USD H4 chart shows a clear downward channel, indicating the pair’s strong bearish trend over the past several sessions. The Kiwi’s price action has made consistent lower highs and lower lows, adhering closely to the boundaries of this bearish channel. Recently, the pair has found temporary support around the 0.6119 level, but it struggles to maintain any upward momentum. Short-term recovery attempts are capped, and the overall structure suggests that selling pressure remains dominant.


Key Technical Indicators:

RSI (Relative Strength Index):

The RSI is currently at 33.68, indicating that the pair is in the oversold territory. This could suggest a possible short-term corrective bounce; however, the overall bearish momentum might continue unless the RSI moves back above the 50 level, confirming a shift in the pair’s sentiment.

Ichimoku Cloud:

The Ichimoku Cloud shows a clear bearish sentiment, with the price well below the cloud, indicating continued downside pressure. The Tenkan-sen line (red) is below the Kijun-sen line (blue), reinforcing the NZDUSD bearish outlook. The Lagging Span is also below the price, confirming that the current trend is bearish. However, the pair’s proximity to key support levels may lead to some consolidation.


Support and Resistance:

Support Levels:

The key support levels are 0.6119 and 0.6070. If the price breaks below these levels, the next major support could be around 0.6000.

Resistance Levels:

On the upside, resistance is seen at 0.6141, followed by 0.6160. Any break above these levels may result in short-term bullish momentum, though the broader trend remains bearish.


Conclusion and Consideration:

The NZD/USD H4 candle chart analysis today confirms that the pair is firmly entrenched in a bearish trend, with key technical indicators like the RSI and Ichimoku cloud reinforcing this sentiment. Although the RSI is approaching oversold territory, suggesting a potential short-term bounce, the overall bias remains bearish unless there is a significant change in the pair’s momentum. Traders should closely monitor upcoming U.S. data and Fed speeches for any signs of USD strength or weakness that could influence the NZD-USD fundamental movements. It's crucial to keep an eye on key support levels, as a break below them could open the door to further downside. Conversely, a break above resistance might offer a temporary relief rally.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.09.2024

 

[FXGlory]

USDJPY H4 Technical and Fundamental Analysis for 10.10.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The USD/JPY currency pair, also known as the “Gopher,” always has its daily fundamental forecast significantly influenced by monetary policy from both the Federal Reserve (Fed) and the Bank of Japan (BoJ). Today, several key events, including speeches by Federal Reserve members, like Susan Collins and Mary Daly, are expected to provide subtle clues regarding future US monetary policy, which could impact USD volatility. Hawkish commentary from these officials could strengthen the USD. In contrast, the BoJ’s recent measures to stabilize lending and corporate price adjustments will affect JPY strength, as traders monitor Japan's economic performance. Inflation reports and unemployment data from the US are also set to influence market movements in the short term, further shaping the USD/JPY direction.


Price Action:
On the USD/JPY H4 candle chart, we can see the pair’s bullish trend, moving within a rising channel. The Gopher’s price action is consistently making higher highs and higher lows, reflecting its strong bullish momentum. The pair is approaching a key resistance level at 149.860, which, if broken, could signal continued bullish pressure toward the 150.915 level. However, a rejection from this level could see a retracement back toward the lower boundary of the ascending channel.


Key Technical Indicators:
Stochastic Oscillator: The stochastic is hovering in overbought territory, currently around 91.17, signaling potential exhaustion in the uptrend. This could mean a possible short-term pullback or correction is on the horizon before any further USDJPY upward movement.
Volume: Recent volume analysis shows a gradual increase in bullish activity, supporting the ongoing uptrend. However, any divergence between the pair’s price action and its volume could hint at a reversal or weakening of the trend.


Support and Resistance:
Support Levels: The first support level is at 148.929, aligned with the lower boundary of the ascending channel. A break below this level could lead to further declines, testing the support at 148.200.
Resistance Levels: The next key resistance is located at 149.860, with the potential for further movement toward 150.915 if bullish momentum continues.


Conclusion and Consideration:
The USD/JPY analysis today is clearly displaying strong bullish momentum on its H4 chart, driven by the pair’s fundamental and technical factors. Traders should keep an eye on the upcoming speeches by Fed officials, which may provide insight into future interest rate decisions that could push the pair higher. However, with the stochastic oscillator in overbought territory, caution is advised, as there may be a short-term pullback before a continuation of the upward trend. Monitoring support levels and key resistance around 149.860 will be essential for determining potential trading opportunities. Implementing proper risk management strategies, including stop-losses near key support levels, is crucial given the market’s volatility.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.10.2024

 

[FXGlory]

USDCAD Daily Technical and Fundamental Analysis for 10.11.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
Today, several key factors influence the USD/CAD pair. U.S. data includes the Producer Price Index (PPI), which is a critical indicator of inflation at the producer level. A higher-than-expected PPI result would likely strengthen the U.S. Dollar, reinforcing expectations for a hawkish Federal Reserve stance. In addition, speeches by Federal Reserve members such as Austan Goolsbee and Michelle Bowman may provide further insight into the Fed's monetary policy, impacting USD strength. On the CAD side, economic activity will be affected by labor market data, including employment change and unemployment rates. If Canadian data disappoints, it could weigh on the Canadian dollar, pushing the USD/CAD pair higher.


Price Action:
In recent days, the USDCAD pair has been in a strong uptrend, consistently making higher highs and higher lows. The price is moving within an ascending channel, as seen in the H4 timeframe, with momentum driving the pair above the key Fibonacci retracement levels. A minor pullback is observed at the upper boundary of the channel, but bullish momentum remains strong as the pair continues trading above the 50% Fibonacci retracement.


Key Technical Indicators:
Ichimoku Cloud: The price is trading well above the Ichimoku Cloud, confirming a strong bullish trend. Both the Tenkan-sen and Kijun-sen lines are pointing upwards, reinforcing the positive momentum. The Chikou Span also confirms the bullish trend as it stays above the price action, indicating that the trend is likely to continue in the near term.
MACD (Moving Average Convergence Divergence): The MACD line remains above the signal line, confirming ongoing bullish momentum. However, the MACD histogram is starting to flatten, suggesting that the momentum might be weakening slightly. Traders should be cautious of a possible bearish crossover, which could indicate a slowing trend.
Williams %R: The Williams %R indicator is currently approaching overbought territory, indicating that the USDCAD pair could be overextended in the short term. While this reflects strong buying pressure, it also signals a possible correction. A move below the -20 level may signal the beginning of a pullback.


Support and Resistance Levels:
Support: The nearest support level is located at 1.3700, which aligns with the 50% Fibonacci retracement level and the lower bound of the ascending channel. A further decline may find stronger support at 1.3650, which is close to the 38.2% Fibonacci retracement.
Resistance: The immediate resistance is at 1.3780, near the recent highs. A break above this level could push the pair towards 1.3830, which aligns with the 61.8% Fibonacci retracement level and the top boundary of the current channel.


Conclusion and Consideration:
The USDCAD pair on the H4 chart remains in a strong bullish trend, supported by the Ichimoku Cloud, MACD, and Williams %R indicators. While the pair shows some signs of potential short-term overextension, the broader trend continues to favor the bulls. Traders should keep an eye on today’s USD and CAD economic releases, which could drive further volatility, particularly if U.S. PPI data or Fed member speeches signal a hawkish stance. As always, keeping track of key support and resistance levels will be crucial for managing risk and identifying potential trading opportunities.


Disclaimer: This analysis of USDCAD is intended for informational purposes only and does not constitute financial advice. Currency trading involves significant risk, and market conditions can change rapidly. Traders should perform their own research and analysis before making any trading decisions.


FXGlory
10.11.2024

 

[FXGlory]

BTCUSD Daily Technical and Fundamental Analysis for 10.14.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The BTC/USD pair represents the exchange rate between Bitcoin and the US Dollar. Today, market liquidity for BTC USD may be lower due to the Columbus Day holiday in the US, which typically results in less market activity. This could lead to irregular volatility in the cryptocurrency markets, especially with the absence of major institutional traders. However, volatility may pick up later as Neel Kashkari, the President of the Federal Reserve Bank of Minneapolis, is scheduled to speak about fiscal deficits and monetary policy at a conference in Argentina. His comments may offer insights into future US interest rate decisions, which could impact USD strength and, consequently, BTCUSD pair. In the coming days, the focus will be on any hawkish statements from other Federal Reserve officials, which could push the dollar higher and apply pressure on Bitcoin prices.


Price Action:
In the H4 time frame, BTCUSD has been showing signs of a bullish trend, as recent candles have been predominantly positive. The BTC USD price is currently moving between the 23.6% and 38.2% Fibonacci retracement levels, suggesting a continuation of the upward trend. After a strong push from the 50% Fibonacci level, the price broke above the 38.2% level and is now testing the 23.6% retracement, a key area of interest for traders. The BTCUSD price action suggests that buyers are regaining control, with the possibility of pushing the price higher if BTC-USD candle successfully holds above these retracement levels.


Key Technical Indicators:
Bollinger Bands: The BTC/USD price is trading within an upward trend, supported by widening Bollinger Bands, indicating increasing volatility. The price is moving closer to the upper band, signaling strong bullish momentum. Over the last few candles, the price has remained between the 38.2% and 23.6% Fibonacci retracement levels, which aligns with the positive price movement.
Parabolic SAR: The Parabolic SAR indicator shows a strong bullish sentiment, with the last seven dots forming below the candles. This indicates upward momentum and suggests that the current uptrend is likely to continue in the short term.


Support and Resistance Levels:
Support: Immediate support is located at $60,947 (50% Fibonacci level), followed by the next key support at $59,271 (61.8% Fibonacci level).
Resistance: Immediate resistance is seen at $63,385 (23.6% Fibonacci level). A break above this level could push BTC/USD toward the next psychological resistance near $66,000.


Conclusion and Consideration:
The BTCUSD forex pair shows strong bullish momentum on the H4 chart, supported by key indicators like Bollinger Bands and the Parabolic SAR, both signaling upward price movement. However, caution is advised due to irregular volatility stemming from the US bank holiday and potential market-moving comments from Federal Reserve officials. Traders should monitor the 23.6% Fibonacci resistance level closely, as a break above could open the doors for further gains. Additionally, market participants should stay alert to any sudden shifts in USD strength due to upcoming speeches that may affect interest rate expectations.


Disclaimer: The analysis provided for BTC/USD is intended for educational purposes and does not constitute financial advice. Traders should perform their own research and analysis before making any trading decisions. Market conditions can change rapidly, and it's essential to stay updated on current events.


FXGlory
10.14.2024

 

[FXGlory]

NZDUSD Daily Technical and Fundamental Analysis for 10.15.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The NZDUSD pair reflects the exchange rate between the New Zealand Dollar and the US Dollar. The New Zealand Dollar has been under pressure recently, driven by concerns around slowing economic growth in New Zealand and ongoing global uncertainties. Traders are awaiting potential signals from the Reserve Bank of New Zealand (RBNZ) regarding future interest rate policy, with inflation remaining a key concern. The latest inflation data showed stability, but the market is still uncertain about how the RBNZ will respond, especially if global risks intensify.
In the US, the upcoming speeches by Federal Reserve officials, including FOMC members Daly and Kugler, will be closely watched. These speeches may provide insights into the Federal Reserve's stance on interest rate hikes and inflation control. If the tone remains hawkish, it could strengthen the US Dollar, applying further pressure on the NZDUSD pair. Additionally, any developments in global commodity prices, particularly dairy and energy prices, could influence the New Zealand Dollar, given its heavy reliance on commodity exports.


Price Action:
In the H4 timeframe, NZDUSD is displaying signs of consolidation after experiencing a minor recovery from recent lows. The pair is currently trading near a key support zone, but recent candles show mixed sentiment, with neither bulls nor bears firmly in control. Price action suggests that the pair is waiting for a catalyst, such as central bank comments or economic data, before making a decisive move. NZDUSD has recently bounced off a critical support area near 0.60500, but is struggling to break through resistance around 0.61000.


Key Technical Indicators:
ACD: The MACD shows weak bullish momentum, with the MACD line slightly above the signal line. However, the histogram is showing low levels of activity, indicating that the upward trend lacks strong momentum, and a reversal could occur if the fundamentals shift.
RSI: The Relative Strength Index (RSI) is hovering around 50, indicating a neutral stance. This suggests that the pair is neither overbought nor oversold, leaving room for movement in either direction depending on market catalysts.


Support and Resistance Levels:
Support: The immediate support level is located at 0.60500, where the pair has found recent buying interest. Below that, stronger support can be found at 0.59400, a key psychological level.
Resistance: Resistance lies at 0.61000, a level that has capped gains in recent sessions. A break above this could open the door to a retest of 0.61400, a significant round number that could attract further buying interest if breached.


Conclusion and Consideration:
NZDUSD is in a neutral stance, consolidating around key support levels in the H4 timeframe. The MACD is signaling weak bullish momentum, while the RSI suggests there is still room for movement in either direction. Traders should closely monitor upcoming FOMC member speeches, as any hawkish comments from the Federal Reserve could strengthen the US Dollar, pushing NZDUSD lower. Meanwhile, any dovish signals or supportive RBNZ commentary could provide a short-term boost to the New Zealand Dollar. The pair remains vulnerable to fluctuations in global risk sentiment and commodity prices, which could act as a catalyst for future movements. Traders should be cautious and monitor support and resistance levels closely for any potential breakouts.


Disclaimer: The analysis provided for NZDUSD is intended for educational purposes and does not constitute financial advice. Traders should perform their own research and analysis before making any trading decisions. Market conditions can change rapidly, and it's essential to stay updated on current events.


FXGlory
10.15.2024

 

[FXGlory]

EURGBP H4 Technical and Fundamental Analysis for 10.16.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:

The EUR/GBP news analysis today is as always influenced by the macroeconomic landscapes of both the Eurozone and the United Kingdom, reflecting the latest economic developments. On the GBP side, upcoming UK inflation data, particularly the Consumer Price Index (CPI) due on November 20, 2024, remains a crucial driver. Higher-than-expected inflation readings could push the Bank of England towards further monetary tightening, potentially strengthening the British pound. Meanwhile, for the Euro, attention is focused on the ECB’s future policy, where investors are monitoring remarks by ECB President Christine Lagarde regarding interest rates and economic outlook. As both economies deal with inflationary pressures, traders must assess the pair’s key fundamentals to anticipate future EUR/GBP movements.

Price Action:

The EUR/GBP H4 chart has seen a consistent downtrend over the past few sessions. The pair’s price action shows a consolidation phase following a significant decline, with the price hovering near a key support level of 0.83190. The current EURGBP technical analysis suggests a lack of strong momentum in either direction, indicating indecision in the market. If prices break below this support level, further downside can be expected, while a sustained move above the 0.83295 resistance could signal a reversal or a consolidation phase.


Key Technical Indicators:

Ichimoku Cloud:

The price is trading below the Ichimoku cloud, suggesting the pair’s bearish sentiment. The cloud itself remains bearish, with future levels still below the current price, indicating that downside pressure may persist unless a clear breakout occurs.

RSI (Relative Strength Index):

The RSI stands at 47.32, indicating neutral conditions. This suggests that the market is neither overbought nor oversold, giving room for movement in either direction depending on fundamental news.

MACD (Moving Average Convergence Divergence):

The MACD histogram is slightly negative, with the MACD line below the signal line, reinforcing the bearish momentum. However, the histogram shows signs of flattening, which could suggest a potential reduction in bearish momentum if upcoming data favors the Euro.


Support and Resistance:

Support Levels:

The support level at 0.83190 is a critical level that, if broken, could lead to further declines.

Resistance Levels:

The resistance at 0.83295 is the Immediate resistance that needs to be overcome for any meaningful upside movement, and the resistance at 0.83585 is a higher resistance level that would act as a strong barrier if prices recover.


Conclusion and Consideration:

The EUR/GBP forecast today is suggesting that the pair will remain in a bearish phase, as highlighted by the Ichimoku cloud and MACD indicators. However, with the RSI showing neutral conditions and the MACD histogram flattening, traders should be cautious about potential reversals or consolidation. The upcoming UK inflation data and any hints from the ECB will play pivotal roles in determining the pair's next move. A break below the 0.83190 support would confirm continued bearishness, while a push above 0.83295 could signal a shift towards a more neutral or bullish EUR/GBP outlook. As always, risk management is essential, particularly with key economic data on the horizon.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.16.2024

 

[FXGlory]

AUDUSD H4 Technical and Fundamental Analysis for 10.17.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The AUD/USD news analysis today is influenced by a variety of economic factors from both Australia and the United States. Recently, Australia's employment data and unemployment rate have been pivotal in shaping the Australian dollar's strength. A better-than-expected increase in job creation typically bolsters the AUD, as it signals a healthy economy and boosts consumer spending. On the other hand, the US dollar is being driven by various data points, including retail sales, jobless claims, and consumer sentiment. Hawkish statements from the Federal Reserve could lend support to the USD, while dovish tones or weak economic data would likely weaken it. Overall, both currencies in the AUD/USD pair, also known as the “Aussie”, are highly reactive to economic releases, with traders paying close attention to employment and inflation data to gauge future interest rate changes.


Price Action:
The AUD/USD H4 chart shows the pair’s clear bearish trend, with prices moving lower and making lower highs. The pair is currently trading around 0.66813, as evidenced by a series of red candles, signaling sustained selling pressure. There is a consistent downward momentum as the AUD/USD price remains below the Ichimoku cloud, indicating its bearish market sentiment. Key support levels are being tested, and the Aussie’s price action suggests a potential continuation of the downward trend if sellers maintain control.


Key Technical Indicators:
Ichimoku Cloud: The price is trading below the Ichimoku cloud, which confirms a bearish trend in the market. The cloud itself is showing a wide span, indicating strong resistance overhead. The conversion line (Tenkan-sen) is below the baseline (Kijun-sen), reinforcing the downward bias.
MACD: The MACD histogram shows continued AUDUSD bearish momentum, with the MACD line trading below the signal line. This suggests that the selling pressure is likely to persist, and there’s little sign of a bullish reversal in the short term.


Support and Resistance:
Support Levels: The immediate support level is at 0.66600, followed by 0.66370. These levels could provide a floor for the price in the short term if the selling pressure eases.
Resistance Levels: Key resistance is seen at 0.66930, with stronger resistance at 0.67300. Any upside movement would likely face challenges at these levels due to the broader bearish trend.


Conclusion and Consideration:
In summary, the AUD/USD forecast today tells us that the pair is experiencing bearish momentum as shown by both the Ichimoku and MACD indicators. Given the ongoing pressure, traders should be cautious of potential further downside, particularly if key support levels break. However, should upcoming economic data from Australia, such as employment figures, surprise to the upside, the pair could see a retracement toward the resistance levels. It is critical for traders to stay updated with the latest economic data and central bank announcements to better anticipate potential shifts in the AUDUSD pair’s direction.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.17.2024

 

[FXGlory]

GBPUSD H4 Technical and Fundamental Analysis for 10.18.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis
The GBP/USD pair is influenced today by key economic indicators from both the UK and the US. In the UK, the latest retail sales figures from the Office for National Statistics will be closely watched. Retail sales are a primary indicator of consumer spending and economic health; a better-than-expected result could boost the GBP currency. In the US, data from the Treasury Department on long-term securities purchases (TIC) and building permits provide insights into economic activity. Positive data from the US could strengthen the USD symbol, putting downward pressure on GBP USD forex pair. Additionally, the upcoming speech by Federal Reserve Governor Christopher Waller could offer clues about future US monetary policy, potentially adding volatility to the pair.


Price Action
The GBPUSD H4 chart reveals that the pair has been in a bearish trend for the past few weeks, although the most recent candles show some bullish recovery attempts. Out of the last candles, some of the last candles have turned bullish, indicating possible signs of short-term consolidation or retracement. The GBPUSD price is currently attempting to break above the lower boundary of the parabolic channel (in dark orange), which it has been trading below, indicating ongoing bearish momentum. However, if the price manages to break and hold above the 1.30204 level, further upside could be expected, leading to a potential shift in market sentiment.


Key Technical Indicators
%R Indicator: The Williams %R is at -57.93, which is mid-range and indicates that the price is neither overbought nor oversold. This suggests that while the price has some room for movement in either direction, the current trend remains bearish until further evidence shows otherwise.
Stochastic Oscillator (5,3,3): The Stochastic indicator shows a value of 80.92 and 76.87, indicating that the pair is nearing overbought conditions. This might suggest a short-term pullback or consolidation before any continued upward movement, especially if resistance levels are not breached.
Parabolic SAR: The Parabolic SAR dots (in DeepSkyBlue) are currently positioned above the GBP USD price, confirming the ongoing bearish trend. The price is attempting to push through the lower boundary of the channel, indicating a potential breakout if momentum builds. However, traders should be cautious, as the overall trend remains bearish until the parabolic dots shift below the price.


Support and Resistance
Support: The immediate support level is at 1.29800, which aligns with a previous low and the lower boundary of the Fibonacci retracement level.
Resistance: The nearest resistance is at 1.30250, with a higher level at 1.30880, which corresponds with the 23.6% Fibonacci retracement level and could act as a barrier if the price attempts to move higher.


Conclusion and Consideration
The GBP-USD currency pair is currently attempting to recover from its bearish trend on the H4 chart. Despite recent bullish candles, the trend remains predominantly bearish, as indicated by technical indicators such as the Parabolic SAR and Williams %R. Traders should monitor support at 1. 29800 and resistance at 1.30250 closely. A break above 1.30250 could lead to further bullish momentum, but failure to hold above this level may result in continued bearish pressure. Market participants should also keep an eye on the upcoming US and UK economic data releases for potential impacts on GBP/USD volatility.


Disclaimer: This analysis is provided for informational purposes only and does not constitute investment advice. Trading forex carries a high level of risk, and traders should conduct their own analysis before making any trading decisions.


FXGlory
10.18.2024

 

[FXGlory]

EURUSD H4 Technical and Fundamental Analysis for 10.21.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The EUR/USD news analysis today is influenced by various fundamental factors, including news from both the Eurozone and the United States. In the Eurozone, the Producer Price Index (PPI) released by Destatis remains a key indicator as it signals potential inflationary pressures. An actual result above the forecast would support the Euro; however, the release is still pending. Simultaneously, ongoing IMF meetings in Washington, which cover global economic outlooks and policies, could add volatility, particularly if significant policy shifts are announced. On the US side, several speeches from Federal Reserve officials, including Lorie Logan and Neel Kashkari, are anticipated. Given the potential hawkish tones, these discussions could bolster the USD, creating further downward pressure on the EUR/USD exchange rate.


Price Action:
The EUR/USD H4 candle chart, displays a consistent bearish trend with lower highs and lower lows, reflecting a continuation of selling pressure. The price remains below key levels, and attempts at a recovery are meeting resistance, as shown by several red candles indicating selling dominance. The pair’s price action shows that its price is currently hovering near a short-term support level at 1.0836, with a slight bounce observed; however, momentum remains weak, suggesting that further declines could be likely if this level fails to hold.


Key Technical Indicators:
Ichimoku Cloud: The Ichimoku Cloud shows that EUR/USD is trading well below the cloud, indicating the pair’s strong bearish sentiment. The Tenkan-sen (red) is below the Kijun-sen (blue), signaling ongoing selling pressure. Additionally, the leading span of the cloud remains thick and bearish, indicating a potential continuation of the downward trend.
MACD: The MACD indicator shows bearish momentum, as the MACD line is below the signal line and the histogram bars are negative. The distance between the lines is still widening, which reinforces the bearish sentiment and suggests that further downside movement may continue if the price remains below key levels.
RSI (Relative Strength Index): The RSI is currently at 45.93, indicating bearish momentum but not yet reaching oversold levels. This positioning shows that while there is still room for further downward movement, the market might pause or consolidate before continuing the decline.


Support and Resistance:
Support Levels: The immediate support is seen at 1.0836, with further support at 1.0800. If these levels are breached, it could open the way to deeper declines, possibly toward the 1.0770 zone.
Resistance Levels: Resistance is observed at 1.0896, followed by a stronger resistance level at 1.0930, which aligns with the top of the recent consolidation range. A break above these levels could suggest a reversal; however, given the current trend, this is less likely.


Conclusion and Consideration:
The EUR/USD fundamental analysis continues to show bearish tendencies as global economic events and speeches from key US Federal Reserve members keep the market under pressure. The pair’s technical analysis on its H4 chart, with the confirmations of the Ichimoku Cloud, MACD, and RSI, all point to ongoing bearish momentum, with the price struggling to overcome resistance levels. Traders should watch for further declines if support at 1.0836 is broken and remain cautious about potential EURUSD volatility from the IMF meetings and upcoming economic data. Effective risk management strategies, such as setting stop-loss orders and monitoring key fundamental news events, are essential in this current trading environment.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.21.2024

 

[FXGlory]

GBPCAD H4 Technical and Fundamental Analysis for 10.22.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The GBP/CAD news analysis today is influenced by various fundamental factors, including news from both Canada and the United Kingdom. In Canada, the Industrial Product Price Index (IPPI) and the Raw Materials Price Index (RMPI) were released, showing declines of -0.4% and -1.7%, respectively. Although these results were better than their previous values, they indicate ongoing weakness in inflationary pressure, which could weigh on the Canadian dollar. In the UK, the Bank of England Governor Bailey's speech at 2:25 PM and subsequent comments from MPC Member Greene at 2:45 PM are critical. Their statements could significantly impact the pound if their tone is interpreted as hawkish or dovish, adding to the volatility of GBP/CAD.


Price Action:
The GBP/CAD H4 candle chart displays a mix of consolidation and a potential bearish pullback as the pair approaches key support levels. After recent attempts at breaking above key resistance levels, the price has retracted, reflecting some selling pressure. The current candle suggests bearish sentiment, with the price moving below the Tenkan-sen (red line), indicating short-term downward movement.


Key Technical Indicators:
Ichimoku Cloud: The Ichimoku Cloud shows that GBP/CAD is currently trading within the cloud, indicating indecisiveness in the market. The Tenkan-sen (red) has crossed below the Kijun-sen (blue), which suggests emerging bearish momentum. The lagging span has not yet confirmed a definitive trend, pointing to a potentially mixed market sentiment.
MACD: The MACD indicator is still positive, but the histogram bars are starting to diminish in height, indicating a potential weakening of bullish momentum. The MACD line remains slightly above the signal line, but the narrowing gap suggests caution is warranted as momentum may be shifting.
RSI (Relative Strength Index): The RSI is currently at 48.45, reflecting neutral to slightly bearish momentum. This level indicates that there is room for further movement in either direction without being overbought or oversold, thus leaving the door open for continued downside if fundamentals support it.


Support and Resistance:
Support Levels: The immediate support is seen at 1.79212, followed by 1.78888 and 1.78500. If the price breaks below these support levels, it could lead to a deeper decline.
Resistance Levels: Resistance is observed at 1.79900, with further resistance at 1.80265 and 1.81000. A break above these levels could indicate a reversal to the upside, but given the current momentum, this appears less likely unless positive GBP news supports such a move.


Conclusion and Consideration:
The GBP/CAD fundamental analysis continues to show potential bearish tendencies due to mixed economic data from Canada and upcoming speeches from key BOE officials, which could influence the pound’s strength. The pair's technical analysis on its H4 chart, considering the Ichimoku Cloud, MACD, and RSI indicators, suggests emerging bearish sentiment. Traders should watch for a break below the support at 1.79212, which may confirm further bearish movement, and stay attentive to any significant statements from Governor Bailey and MPC Member Greene, which could create spikes in volatility. Effective risk management, including monitoring fundamental news and setting appropriate stop-loss levels, is crucial in this market environment.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.22.2024

 

[FXGlory]

USDCAD H4 Technical and Fundamental Analysis for 10.23.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:

The USD/CAD news outlook today, is influenced by both the US Dollar and the Canadian Dollar, reacts to economic developments and central bank policies from both the US and Canada. Today, market participants are closely monitoring remarks from Michelle Bowman at the Annual Fintech Conference. Any hawkish signals from her speech could strengthen the USD, pushing the USD/CAD price higher. Additionally, Canadian economic updates, particularly those from the Bank of Canada (BOC), remain pivotal. With oil prices and energy inventories affecting the Canadian economy and the CAD’s value, traders should also pay attention to crude oil stock reports, as these are likely to create volatility in the USD/CAD market directions.


Price Action:

The USD/CAD H4 chart indicates the pair’s bullish trend as the price continues to trade above the Ichimoku cloud. The recent candles have shown some consolidation after a previous upward surge, suggesting the price may be preparing for the next move. The pair’s price action remains above key moving averages, indicating the persistence of bullish sentiment. If the price sustains above the cloud and the moving averages, further bullish movement is likely.


Key Technical Indicators:

Ichimoku Cloud: The USD/CAD price remains above the Ichimoku cloud, reinforcing its bullish outlook. The cloud is acting as a support area, with its base around 1.3735. As long as the price stays above this cloud, bullish momentum is expected to continue. The leading span (Senkou Span A and Span B) shows a thick cloud, suggesting solid support below.

MACD: The MACD indicator shows a gradual convergence between the MACD line and the signal line after a strong bullish histogram. This could indicate a potential slowing of bullish momentum or a consolidation phase. Traders should monitor for any crossover signals that might hint at a shift in trend direction.


Support and Resistance:

Support Levels:

The immediate support level is at 1.3916, with further support located at 1.3761, which aligns with the lower boundary of the Ichimoku cloud.

Resistance Levels:

The nearest resistance is at 1.3842. A break above this level could push the price further towards higher resistance levels, potentially around 1.3885.


Conclusion and Consideration:

The USD/CAD H4 analysis suggests a continuation of the bullish trend as long as the price remains above the Ichimoku cloud. However, the MACD indicates that traders should be cautious of a potential consolidation or pullback. Fundamental events such as speeches from Federal Reserve officials and oil inventory reports are critical for the USD/CAD news analysis, as they could dictate the next significant price movement. Traders should remain attentive to these events while maintaining proper risk management strategies, including stop losses around key support levels, to navigate potential volatility.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.23.2024

 

[FXGlory]

GBP/USD H4 Daily Technical and Fundamental Analysis for 10.24.2024

Time Zone: UTC (+03:00)
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The GBP/USD, also known as "Cable," reflects the exchange rate between the British Pound (GBP) and the US Dollar (USD). Today’s focus is on US unemployment claims data, which, if lower than expected, could boost the USD, putting pressure on GBP/USD. The Federal Reserve Bank of Cleveland President Beth Hammack is also scheduled to speak, and her remarks may hint at future US monetary policy, influencing market sentiment. Additionally, upcoming PMI data from the UK is crucial, as positive figures could support the GBP; however, any signs of contraction could weigh heavily on the pair. Moreover, with the Bank of England (BOE) participating in global discussions, market participants should watch for any policy updates or remarks that could create further volatility.


Price Action:
The GBP/USD pair shows a persistent downtrend in the H4 timeframe. The GBPUSD price has been consistently moving within a descending channel and is currently trading below the Ichimoku Cloud, indicating continued bearish pressure. The past few candles suggest some consolidation, but the pair remains under selling pressure as it fails to break above the cloud. The pair also hovers near the 23.6% Fibonacci retracement level, with strong resistance ahead. Given the current setup, the price could further test lower levels if selling momentum continues.


Key Technical Indicators:
Ichimoku Cloud: The GBP/USD forex pair is trading below the Ichimoku Cloud, confirming the bearish trend. The cloud is acting as overhead resistance, and the lagging span suggests that the bearish momentum could persist unless the price breaks above the cloud and the conversion line crosses the baseline.
MACD (Moving Average Convergence Divergence): The MACD indicator shows a bearish setup, with the MACD line remaining below the signal line. The histogram is in negative territory, signaling ongoing downward momentum, which aligns with the overall price action.
RSI (Relative Strength Index): The RSI stands at 31.66, indicating that the pair is nearing oversold conditions. Although this suggests potential for a short-term bounce or consolidation, the overall bearish trend remains dominant unless a reversal pattern is confirmed.


Support and Resistance:
Support: The nearest support level is located at 1.2900, which aligns with a recent low and the lower boundary of the descending channel. A break below this could open the path to further downside movement.
Resistance: Immediate resistance is observed at 1.3000, where the upper boundary of the descending channel and the Ichimoku Cloud overlap. A break above this level could signal a shift in momentum.


Conclusion and Consideration:
The GBP USD H4 analysis indicates a continuation of bearish momentum as long as the price remains below the Ichimoku Cloud and within the descending channel. Traders should closely monitor the upcoming US unemployment claims and speeches from key economic figures for clues on market direction. Given the current oversold levels on the RSI, there may be short-term opportunities for consolidation or a minor bounce; however, the dominant downtrend persists. It is advisable for traders to manage risk appropriately, as unexpected fundamental shifts, particularly from US data or UK economic indicators, could lead to volatility.


Disclaimer: The analysis provided for GBP/USD is for informational purposes only and does not constitute trading advice. Market conditions can change rapidly, and it is crucial for traders to conduct their own research and remain updated with the latest market information. Always practice proper risk management when trading forex markets.


FXGlory
10.24.2024

 

[FXGlory]

USDJPY H4 Technical and Fundamental Analysis for 10.25.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The USD/JPY forex trading pair, often referred to as the "Ninja," is influenced heavily by both U.S. and Japanese economic releases. For today’s USDJPY news analysis, traders are focusing on U.S. Durable Goods Orders and Japanese inflation data, specifically Tokyo's CPI. If U.S. data beats expectations, it may strengthen the USD, pushing USD/JPY prices higher, while a stronger-than-forecast CPI in Japan could bolster the JPY, potentially leading to downward pressure on the pair. Furthermore, the upcoming Corporate Services Price Index (CSPI) release from Japan also offers insight into inflation trends, which may influence the Bank of Japan’s monetary policy stance, indirectly affecting the yen's value against the dollar. These economic events are key for traders monitoring the Ninja for short-term trading opportunities.


Price Action:
On the USD/JPY H4 candle chart, the price shows a clear uptrend, moving within an ascending channel. The Ninja’s price action today indicates some consolidation as the pair trades near the upper boundary of the channel. The price briefly tested resistance levels around 153.070 but has since pulled back slightly, suggesting profit-taking or hesitation among traders. This could either be a pause before a continuation of the uptrend or a sign of a potential reversal if bearish momentum picks up.


Key Technical Indicators:
MACD: The MACD histogram is positive, and the MACD line is above the signal line, indicating a USD-JPY bullish trend. However, the recent narrowing of the histogram bars suggests that bullish strength might be weakening, and traders should monitor for any potential bearish crossovers which could signal a shift in trend.
RSI (Relative Strength Index): The RSI is currently around 56, indicating moderate bullishness. As long as the RSI remains above the 50 level, the bullish momentum remains intact, but if the RSI begins to dip below this level, it may suggest growing bearish pressure and the possibility of a correction.


Support and Resistance:
Support Levels: The nearest support level is at 151.568, followed by a stronger support at 151.051, which aligns with the lower boundary of the ascending channel.
Resistance Levels: Immediate resistance is observed at 152.047, and further resistance lies at 153.070, which has previously acted as a barrier to higher prices. A break above this level could open the path toward higher highs.


Conclusion and Consideration:
The USD/JPY forecast today shows the pair is currently consolidating within an uptrend on its H4 chart, with technical indicators showing moderate bullishness but also signaling caution as momentum appears to be slowing. Traders should closely watch upcoming U.S. and Japanese economic data releases, as they could provide the catalyst for the next USDJPY fundamental move. A break above the 153.070 resistance could confirm continued bullish momentum, while a failure to maintain the channel’s support may signal a correction. Proper risk management is advised, especially around key economic events that may increase volatility.


Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.


FXGlory
10.25.2024

 

[FXGlory]

EURGBP Daily Technical and Fundamental Analysis for 10.28.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The EUR/GBP currency pair, reflecting the exchange rate between the Euro (EUR) and the British Pound (GBP), could experience moderate volatility today due to the release of data from the Confederation of British Industry (CBI) on retail and wholesale sales volume. This index serves as a leading indicator of consumer spending trends in the UK, with values above zero indicating a rise in sales volume. A figure above the forecast is generally positive for the GBP, suggesting higher consumer demand. The market's response to this data could influence the EUR/GBP direction, as better-than-expected data might provide short-term support for the GBP, potentially applying bearish pressure on EUR/GBP. Traders should watch for this release as it could lead to increased price fluctuations in the EUR/GBP forex pair today.


Price Action:
On the H4 timeframe, EURGBP has shown mixed price movement within a slightly bearish trend. The price has fluctuated between bullish and bearish candles, moving between the upper and middle Bollinger Bands. Currently, it rests near the middle band with the last two candlesticks displaying bullish characteristics. The pair is trading between the 23.6% and 38.2% Fibonacci retracement levels, indicating consolidation within a minor downward channel. This range-bound movement suggests a potential for either a breakout or further consolidation within these Fibonacci levels, which act as temporary support and resistance zones.


Key Technical Indicators:
Bollinger Bands: The Bollinger Bands for EUR GBP on the H4 chart show moderate volatility, with the price oscillating between the upper and middle bands. After a period of compression, the bands have expanded slightly, indicating potential for directional movement. The price currently hovers around the middle band, suggesting neutral momentum with a possible upward bias if it breaks above this line.
RSI (14): The RSI (Relative Strength Index) is currently around 47.67, slightly below the 50 level, indicating a balanced market with neither strong bullish nor bearish momentum. This level aligns with a consolidation phase, suggesting traders may be waiting for a catalyst, such as upcoming GBP news, to confirm the next directional move.
Williams %R (14): The Williams %R (14) indicator stands around -58.27, signaling that the pair is in a neutral to slightly bearish region. This positioning suggests that while there is mild selling pressure, the pair has room to shift either upwards or downwards based on market sentiment and external factors like the upcoming CBI report.


Support and Resistance:
Support: Immediate support is located at the 23.6% Fibonacci retracement level (0.8320) and further down near 0.8300, aligning with recent price lows.
Resistance: The nearest resistance is at the 38.2% Fibonacci level (0.8345), followed by the 50.0% level (0.8365) if bullish momentum picks up.


Conclusion and Consideration:
The EURGBP H4 chart currently suggests a consolidating trend within the 23.6% and 38.2% Fibonacci levels, showing a neutral bias. The Bollinger Bands, RSI, and Williams %R indicators all point towards indecision in the market, suggesting that the upcoming CBI report might serve as a critical catalyst for the next movement in the EUR/GBP pair. Traders should exercise caution and consider potential price volatility around the release time of the CBI data, as it may influence GBP strength. A close watch on support and resistance levels is advisable to confirm breakout or continuation patterns.


Disclaimer: This EUR/GBP analysis is for informational purposes only and does not constitute financial advice. Traders should perform their own due diligence and consider current market conditions before making any trading decisions. Rapid market changes can occur, especially around significant economic releases.


FXGlory
10.28.2024

 

[FXGlory]

USDCAD H4 Technical and Fundamental Analysis for 10.29.2024

Time Zone: UTC (+03:00)
Time Frame: 4 Hours (H4)


Fundamental Analysis:
USDCAD, reflecting the exchange rate between the US Dollar and the Canadian Dollar, is poised for significant market movements today as multiple economic indicators for both the US and Canada are released. The US has Trade Balance, Wholesale Inventory, House Price Index, and Consumer Confidence data scheduled, all of which could impact the dollar's strength. A positive shift in Trade Balance or Consumer Confidence is likely to bolster USD demand, potentially strengthening USDCAD. On the Canadian side, Bank of Canada Governor Tiff Macklem is set to testify, which may offer insights into future monetary policy. If Macklem's tone is hawkish, we might see a rise in the CAD, placing downward pressure on USDCAD. Traders should watch these releases closely, as they could introduce significant volatility.


Price Action:
In the H4 timeframe, USDCAD has maintained a clear bullish trend, moving within an ascending channel. The price is persistently trading between the middle and upper Bollinger Bands, indicating continued bullish control with minor retracements. This steady upward movement is highlighted by recent bullish candles that continue pushing the price higher within the channel, showing robust buyer momentum. Any breakout from this channel could indicate a shift in momentum and is worth watching.


Key Technical Indicators:
Bollinger Bands: USDCAD is moving in the upper half of the Bollinger Bands, oscillating between the middle and upper bands. This pattern suggests that the market is experiencing an extended bullish phase, with the price showing little inclination toward the lower band, reinforcing bullish sentiment.
RSI (Relative Strength Index): The RSI is currently at 65.28, indicating a bullish market but approaching the overbought threshold. Although this level shows that the upward momentum is strong, caution is advised as the market could be nearing an overextended condition.
MACD (Moving Average Convergence Divergence): The MACD line is above the signal line, and the histogram bars are positive, which reinforces the current bullish trend. However, the reduced histogram size suggests slightly weakening bullish momentum, signaling potential consolidation or a minor pullback.
Volumes: Trading volume has shown moderate fluctuations, with some spikes on bullish candles. Increased volume during these upward moves indicates robust buying interest, supporting the bullish outlook.


Support and Resistance:
Support: The immediate support level is at 1.3831, aligning with the middle Bollinger Band and providing a strong base for any potential pullback within the ascending channel.
Resistance: The nearest resistance is at 1.3951, located at the upper boundary of the Fibonacci 100.0% retracement level. This level could act as a significant barrier, especially if the price attempts to break out from the ascending channel.


Conclusion and Considerations:
The USDCAD H4 chart shows consistent bullish momentum supported by price action and key technical indicators. The upward trend within the ascending channel suggests that buyers are still in control, although the RSI's approach to overbought territory and the MACD’s flattening histogram warrant cautious optimism. The upcoming US and Canadian economic data releases and the Bank of Canada Governor’s testimony could bring about increased volatility and potentially influence the USDCAD trend direction. Traders should monitor these levels and indicators closely for signs of trend continuation or reversal.


Disclaimer: The analysis provided for USDCAD is for informational purposes only and does not constitute investment advice. Traders are encouraged to perform their own analysis and research before making any trading decisions on USDCAD. Market conditions can change quickly, so staying informed with the latest data is essential.


FXGlory
10.29.2024

 

[FXGlory]

AUDUSD Daily Technical and Fundamental Analysis for 10.30.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)



Fundamental Analysis:
The AUDUSD pair is currently influenced by mixed economic data from both Australia and the United States. Recent Australian Consumer Price Index (CPI) data revealed lower-than-expected inflation, with quarterly CPI coming in at 0.3% compared to the previous 1.0%, and the yearly CPI at 2.3% versus the prior 2.7%. This signals a deceleration in inflation, which may reduce the likelihood of further rate hikes from the Reserve Bank of Australia (RBA). The steady Trimmed Mean CPI at 0.8% suggests that core inflation is holding, but the overall decrease in inflationary pressure may drive the RBA to take a more dovish stance, weakening the Australian Dollar.

In contrast, the US economic data portrays resilience. The Advance GDP for the quarter met expectations at 3.0%, indicating steady growth, while the Advance GDP Price Index came in lower at 1.9% from the previous 2.5%, showing reduced inflationary pressure on growth. However, the ADP Non-Farm Employment Change was lower than anticipated at 110K, down from the forecasted 143K, signaling potential softness in the labor market. Still, the overall strength in GDP growth supports the Federal Reserve’s current monetary stance, potentially strengthening the US Dollar further.



Price Action:
In the H4 timeframe, AUDUSD is trending downwards within a well-defined descending channel, marked by consistent lower highs and lower lows. The pair is currently trading near key support levels around 0.65500, showing no definitive signs of reversal yet. Recent price action suggests continued bearish momentum, though the proximity to the lower Bollinger Band indicates potential for short-term oversold conditions. If the price breaks below the 0.65500 level, it could open the path towards the next support levels.



Key Technical Indicators:
MACD: The MACD indicates strong bearish momentum, with the MACD line positioned below the signal line and the histogram extending below zero. This configuration reflects a solid downward trend, although any divergence or slowing of the histogram may suggest a possible easing of bearish momentum.
RSI: The Relative Strength Index (RSI) is around 30, which is close to oversold territory. This level may attract some buying interest, suggesting a potential short-term rebound. However, the downtrend remains dominant, and a sustained move above 30 on the RSI would be needed to signal a possible reversal.
Volume: Volume remains relatively steady, without any significant spikes. This steady volume trend supports the continuation of the current trend but lacks strong buying interest, further confirming bearish sentiment.


Support and Resistance Levels:
Support: Immediate support at 0.65500, where the price is currently consolidating. Further support levels are seen at 0.65350 and 0.65200, which could provide stronger buying interest if the price continues to decline.
Resistance: Resistance is located at 0.66590, a recent level where price gains were capped. Additional resistance levels are at 0.66990 and 0.67190, where stronger selling pressure may re-emerge if the price rebounds.


Conclusion and Consideration:
AUDUSD is in a strong bearish trend on the H4 timeframe, trading near critical support levels. The MACD and RSI both signal bearish sentiment, though the RSI nearing oversold territory suggests the potential for a short-term pullback. Traders should closely monitor Federal Reserve commentary and any RBA updates, as hawkish US Fed statements could strengthen the USD further, intensifying the downward pressure on AUDUSD. Conversely, any dovish Fed signals or supportive Australian economic data may provide temporary relief for the AUD. Key support and resistance levels should be watched for any breakout, which could indicate a continuation or reversal of the current trend.


Disclaimer: The analysis provided for AUDUSD is for informational purposes only and does not constitute investment advice. Traders are encouraged to perform their own analysis and research before making any trading decisions on AUDUSD. Market conditions can change quickly, so staying informed with the latest data is essential.


FXGlory
10.30.2024

 

[FXGlory]

EURUSD Daily Technical and Fundamental Analysis for 10.31.2024

Time Zone: GMT +3
Time Frame: 4 Hours (H4)


Fundamental Analysis:
The EURUSD pair faces downward pressure from recent Eurozone data releases, showing a mixed economic picture. Germany’s retail sales disappointed with a -0.7% decline, against expectations of a 1.6% increase, suggesting weaker consumer spending and an economic slowdown. Similarly, German import prices showed a decrease of -0.4%, in line with forecasts but reflecting declining demand. France’s CPI was modestly positive at 0.2%, but Italy’s CPI came in slightly negative at -0.1%. The Eurozone’s CPI flash estimate showed an annual increase of 1.9%, slightly above expectations but still below the ECB’s target, suggesting inflation remains controlled and reducing pressure on the ECB for aggressive rate hikes.
The ECB’s recent economic bulletin reinforces a cautious outlook, as growth concerns overshadow inflationary risks. Additionally, the Eurozone’s unemployment rate holds steady at 6.4%, signaling a stable but uninspiring labor market. With core inflation also below target at 2.6% annually, these factors may drive the ECB to maintain its dovish stance, potentially weakening the Euro further.
Meanwhile, the U.S. data points highlight a resilient economic landscape. Core PCE, the Fed’s preferred inflation measure, showed a monthly increase of 0.3%, above expectations of 0.1%, suggesting inflationary pressures remain. Personal income and spending also surpassed forecasts, signaling strong consumer demand, while unemployment claims came in slightly above forecast but still reflect a stable job market. The Chicago PMI also exceeded expectations at 46.9, indicating some improvement in U.S. manufacturing sentiment. Overall, these data points suggest continued economic strength, potentially supporting the Federal Reserve’s stance and bolstering the U.S. Dollar.


Price Action:
On the H4 timeframe, EURUSD continues to trade within a descending trend channel. The pair recently tested resistance near the 23.6% Fibonacci retracement level and encountered selling pressure. With resistances at 1.08700 and 1.09000, the pair may face difficulty breaking higher unless there’s a strong bullish catalyst. Conversely, support levels are located at 1.08111 and 1.07860, where buyers may step in if the price moves lower.


Key Technical Indicators:
MACD: The MACD shows a slight bullish signal, with the MACD line slightly above the signal line, suggesting mild bullish momentum. However, the histogram remains close to zero, indicating limited strength in the current uptrend and a likelihood of continued bearish pressure unless upward momentum increases significantly.
RSI: The RSI stands around 58.28, showing a neutral to slightly bullish sentiment. This positioning suggests some potential for upside movement, but it remains vulnerable to reversal within the broader downtrend channel.


Support and Resistance Levels:
Support: immediate support is at 1.08111, with a further key level at 1.07860, where the price may encounter stronger buying interest.
Resistance: Resistance levels are set at 1.08700 and 1.09000. A break above these levels would indicate a potential shift in sentiment, while a failure to break through would likely maintain the bearish trend.


Conclusion and Consideration:
EURUSD is in a sustained bearish trend on the H4 timeframe, with economic fundamentals favoring the U.S. Dollar amid resilient U.S. economic data and cautious Eurozone prospects. The MACD and RSI suggest a slight bullish divergence, hinting at possible short-term upside, though resistance levels may cap gains. Traders should closely monitor upcoming U.S. economic data and any ECB statements, as strong U.S. data or dovish ECB comments could push the pair lower. Conversely, any signs of improving Eurozone data or dovish Fed commentary could provide temporary relief for the Euro. Key support and resistance levels should be watched closely for breakout or reversal signals.

Disclaimer: The analysis provided for EURUSD is for informational purposes only and does not constitute investment advice. Traders are encouraged to perform their own analysis and research before making any trading decisions on EURUSD. Market conditions can change quickly, so staying informed with the latest data is essential.


FXGlory
10.31.2024