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GBP/USD Nears Monthly Low as Fed Maintain Interest Rate FirmnessThe Pound Sterling (GBP) continued its decline against the US Dollar (USD) for the third consecutive trading day on Monday. The GBP/USD pair is currently hovering near its monthly low, around 1.2660, as the Federal Reserve’s (Fed) hawkish stance on interest rates maintains the US Dollar's strength. Fundamental Analysis Federal Reserve's Interest Rate Outlook The Fed's current position is to reduce interest rates only once this year. However, financial markets are speculating that the Fed might implement two rate cuts and begin unwinding its restrictive policy framework starting from the September meeting, with potential subsequent cuts in November or December. This speculation is driven by the soft US Consumer Price Index (CPI) and Producer Price Index (PPI) reports for May, which have increased expectations for early rate cuts. Impact on GBP/USD The Fed’s firm stance on maintaining higher interest rates supports the US Dollar's appeal, exerting downward pressure on the GBP/USD pair. Despite the market's expectations for rate cuts, the immediate outlook for the USD remains strong, making it difficult for the GBP to gain ground. Technical Analysis Divergence and Support Levels Despite the bearish trend, technical analysis reveals that the GBP/USD pair is showing a divergence on the H4 timeframe. Divergence occurs when the price movement contradicts the signal from technical indicators, often suggesting a potential reversal or slowdown in the current trend. The current price action is also situated in a demand area of support, which aligns with the 50% and 61.8% Fibonacci retracement levels. These Fibonacci levels are commonly used to identify potential support and resistance zones where price reversals might occur. Trading Strategy Given the technical setup, we have identified a range area where the price is currently trading. Although the pair has seen a significant drop, the divergence and support confluence suggest a potential for a reversal or at least a temporary stabilization. To manage risk effectively, a stop loss is placed just below the 50% and 61.8% Fibonacci support levels. This ensures that if the price breaks through these key support areas, it signals a clear change in the main trend, and the trade can be exited with minimal losses.
Long
by FOREXN1
1
USDCAD: Detailed Support & Resistance Analysis 🇺🇸🇨🇦 Here is my latest structure analysis for USDCAD. Vertical Structures: Vertical Support 1: Rising trend line Horizontal Structures: Support 1: 1.3664 - 1.3682 area Support 2: 1.3590 - 1.3627 area Support 3: 1.3547 - 1.3570 area Support 4: 1.3420 - 1.34920 area Resistance 1: 1.3777 - 1.3804 area Resistance 2: 1.3828 - 1.3846 area Consider these structures for pullback/breakout trading. ❤️Please, support my work with like, thank you!❤️
Long
by VasilyTrader
1
NASDAQ Next week expectation #NAS100 Next week..! The price reaches the highest level. And this should be retested. Because 13th of June reaches this price and falls down to 19,479 level. But in a low time frame still running between the Accending channels. But the movement is bearish Because 2 times it is tested with treeline. However once the market opens if the current 4H candle end below 19670 can go for sell to 19352 level. And the buy area located at 18753 - 18933 according to 4H timeframe *My trading plan. Trade at your own risk good luck
OANDA:NAS100USDShort
by chamitha45
5
USD/CAD Edges Lower as Traders Eye Key US Economic DataUSD/CAD is trending lower during the Asian session on Wednesday, currently trading around 1.3750. This recent movement follows a notable reversal from the 1.3790 area, where technical indicators suggested a potential change in direction. Technical Analysis From a technical standpoint, the USD/CAD pair exhibited signs of overbought conditions around the 1.3790 mark, as indicated by the Relative Strength Index (RSI) on the H4 timeframe. A divergence was observed, signaling that the bullish momentum was weakening and a reversal was likely. The pair has since edged lower, reflecting these technical signals. Market Sentiment and Economic Data The market is now focused on upcoming US economic data releases, which are anticipated to inject significant volatility into the trading environment. The key events include the release of the Core Consumer Price Index (CPI) and the Federal Open Market Committee (FOMC) decision. Core CPI Data The Core CPI data, set to be released today, is a critical measure of inflation that excludes food and energy prices. This indicator is closely watched by traders and investors as it provides insights into underlying inflationary pressures within the US economy. Stronger-than-expected CPI figures could reinforce expectations of a hawkish stance from the Federal Reserve, potentially supporting the US Dollar and influencing the USD/CAD pair. FOMC Decision In addition to the inflation data, the FOMC decision is another pivotal event for the day. The Federal Reserve's policy statement and subsequent press conference will offer guidance on the central bank's outlook and future monetary policy actions. Market participants will be keenly observing any hints regarding the timing and extent of interest rate adjustments. The FOMC's tone and projections will be crucial in determining the next directional move for the USD/CAD pair. Anticipated Volatility Given the significance of these economic events, traders are preparing for heightened volatility. The Core CPI and FOMC decision are expected to provide the necessary catalyst for a potential continuation of the reversal observed in the USD/CAD pair. Depending on the outcomes, we could see significant movements as traders react to the data and adjust their positions accordingly. in conclusion USD/CAD is currently consolidating its recent losses around 1.3750, following a technical reversal from the 1.3790 area. The pair's future direction will likely be influenced by today's Core CPI release and the FOMC decision. Traders should be prepared for increased volatility and potential continuation of the bearish trend, especially if the economic data aligns with the technical indicators pointing towards a reversal.
Short
by FOREXN1
1
USD/JPY Presents New Reversal Opportunity at 157.390The USD/JPY pair, having reached the target of our previous analysis, is now presenting another trading opportunity around the 157.390 level. This level is showing potential for a new reversal. Market Dynamics Current Setup: The price is forming an inversion swing pattern (fractal), indicating a possible downward push. Technical Indicators: The swing pattern at 157.390 suggests a potential shift in momentum, making it an attractive level for a reversal trade. Trading Strategy Given the current setup and following the movements of other pairs against the USD, we are considering a short scalping position. Key considerations include: Inversion Swing Pattern: The fractal pattern forming at the 157.390 level signals a possible bearish reversal. Short Scalping Position: The technical setup suggests a potential push down, making it a suitable scenario for a short-term scalping trade. In conclusion the USD/JPY pair is showing a new reversal opportunity at 157.390, with the formation of an inversion swing pattern suggesting a potential downward move. Traders may consider a short scalping position based on this technical setup, looking to capitalize on the anticipated bearish impulse.
Short
by FOREXN1
5
AUD/USD Gains Amidst USD Strength Post-US Jobs ReportThe Australian Dollar (AUD) recovered some ground on Monday after a decline in the previous session. This movement comes as the US Dollar (USD) strengthened due to better-than-expected US employment data released on Friday. The strong jobs report has led traders to push back their expectations for Federal Reserve (Fed) rate cuts, exerting pressure on the AUD/USD pair. Market Analysis 1. USD Strength: The USD's resurgence is attributed to robust US employment figures, which have diminished the immediate likelihood of Fed rate cuts. 2. Impact on AUD/USD: This has resulted in downward pressure on the AUD/USD pair, as the market adjusts to the new expectations regarding US monetary policy. Technical Insights 1. Oversold Conditions: From a technical perspective, the AUD/USD pair is currently in oversold territory, suggesting a potential rebound. 2. Support Area: The price is approaching a key support area, further indicating a possible reversal. Trading Strategy Given the current technical conditions and market dynamics, we are looking to set up a long position. The correlation with other USD pairs supports this strategy, as they also show signs of potential recovery against the USD.
Long
by FOREXN1
1
EUR/USD Awaits Volatility Ahead of Key US Data and FOMC DecisionThe EUR/USD pair is currently oscillating within a narrow range of 1.0750 - 1.0722 during the Asian session on Wednesday, consolidating the losses accumulated over the past three days. This period of consolidation comes as traders adopt a cautious approach, awaiting significant economic events before committing to new directional bets. Market Sentiment and Upcoming Economic Data The subdued trading activity can be attributed to the anticipation surrounding the release of the US consumer inflation figures and the crucial Federal Open Market Committee (FOMC) decision. Both events are expected to have a substantial impact on market volatility and could provide fresh momentum for the EUR/USD pair. US Consumer Inflation Figures The US Consumer Price Index (CPI) data, particularly the Core CPI m/m, is a key indicator of inflation and is closely watched by market participants. The data release is expected to shed light on the current inflationary pressures within the US economy and influence the Federal Reserve's monetary policy stance. Strong inflation data could bolster expectations of a hawkish Fed, potentially supporting the US Dollar and putting further pressure on the EUR/USD pair. FOMC Decision In addition to the inflation data, the FOMC decision is another critical event on the horizon. The Federal Reserve's policy statement and subsequent press conference will provide insights into the central bank's economic outlook and future policy actions. Traders will be particularly interested in any indications regarding the timing of interest rate hikes or tapering of asset purchases. A more hawkish stance could lead to increased demand for the US Dollar, impacting the EUR/USD pair. Technical Perspective From a technical standpoint, the EUR/USD pair is currently in a phase of consolidation. The price is hovering around the support level at 1.0722 and resistance at 1.0750. The market is awaiting the release of the Core CPI m/m and the FOMC decision to trigger the necessary volatility for a significant price movement. Given the current technical indicators and market sentiment, we are looking for a potential long impulse once the data is released. In conclusion the EUR/USD pair remains in a tight range as traders await key economic data and the FOMC decision. The outcome of these events will likely determine the next directional move for the pair. From a technical perspective, we anticipate a bullish impulse following the release of the US inflation figures and the FOMC announcement, provided the data supports such a move. Traders should prepare for heightened volatility and be ready to adjust their positions accordingly.
Long
by FOREXN1
1