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Gold (XAUUSD) Trading at Lower End of the Hourly ChannelGold (XAUUSD) Trading at Lower End of the Hourly Channel: A Potential Rebound Gold (XAUUSD) is currently trading at the lower end of its hourly channel, around the 2312 level. This price point is significant as it aligns with a key demand zone identified on higher time frames. If the channel boundaries are respected, we could anticipate a recovery towards the upper end of the channel. Key Points to Consider: Support at Current Level: The 2312 level has historically acted as a strong support, coinciding with a demand zone on higher time frames. This increases the probability of a bounce from this region. Channel Dynamics: The hourly channel has been well-defined, with price consistently respecting its boundaries. Given this pattern, a move towards the upper end of the channel seems likely if the lower boundary holds. Trade Opportunity: This setup presents a potential long trade opportunity. Entering a position at the current level with a target near the channel's upper boundary could offer a favorable risk-to-reward ratio. Trade Setup: Entry: 2312 (current price level) Target: Upper end of the channel (to be determined based on the channel's slope) Stop Loss: Below the demand zone (specific level to be determined based on risk tolerance) Conclusion: Keep an eye on the price action around the 2312 level. If support holds, we could see a strong upward move towards the channel's upper boundary, presenting a lucrative trading opportunity. Always manage risk appropriately and adjust stop loss and take profit levels as the trade progresses. Happy trading! 🚀
FOREXCOM:XAUUSDLong
by ThirstyBull
Monthly bullish megaphone keeps Gold buyers hopefulGold price resumes its upward trajectory within a fortnight-old bullish megaphone chart pattern after a volatile day that initially refreshed an all-time high before posting the biggest daily loss in two months. That said, the XAUUSD’s corrective bounce also takes clues from a rebound in the RSI (14) line. However, bullish MACD signals and cautious mood ahead of the US Retail Sales tests the bullion’s recovery moves. It should be noted that 100% Fibonacci Extension (FE) of the quote’s February-March moves, near the $2,400 threshold, currently lures the buyers. However, the aforementioned megaphone’s top line, close to $2,441 at the latest, will challenge the precious metal’s upside afterward. Following that, the commodity’s run-up toward the $2,500 round figure can’t be ruled out. Meanwhile, the Gold price sellers need a clear downside break of the stated wedge’s bottom line, around $2,336 by the press time. Following that, the 61.8% and 50% FE level will entertain the XAUUSD bears around $2,305 and $2,277 respectively. However, a convergence of the 100-SMA and an upward-sloping support line from February 28, near $2,265, appears a tough nut to crack for the precious metal sellers. In a case where the quote remains weak past $2,265, the odds of witnessing a quick fall toward March’s peaks of around $2,222 and $2,195 appear brighter. Overall, the Gold price lacks upside momentum but the sellers stay off the table beyond $2,265.
OANDA:XAUUSD
by MTradingGlobal
USDJPY grinds within immediate range amid holiday-shortened weekUSDJPY registered the first weekly loss in three amid mixed concerns about the Bank of Japan’s (BoJ) next move, especially when the policymakers hesitated to stick to the hawkish plan after the first rate hike in 17 years. However, the broad US Dollar strength and an upbeat performance of the yields put a floor under the prices. Apart from the mixed fundamentals, the Yen pair’s inability to break the seven-week-old horizontal support zone surrounding 150.75-90, as well as cross an upward-sloping resistance line stretched from March 20, close to the 152.00 threshold, restrict short-term moves of the pair. It’s worth noting, however, that the quote’s sustained trading beyond the 100 and 200 SMA join steady oscillators to keep the buyers hopeful. That said, an upside clearance of the 152.00 immediate resistance could quickly propel the prices toward a three-week-old support-turned-resistance, around 152.90. Following that, the June 1990 high of 155.80 will be in the spotlight. On the contrary, a downside break of the seven-week-old horizontal support of 150.75-90 will direct the USDJPY sellers toward the 200 and 100 SMA levels, respectively near 150.00 and 149.75 at the latest. In a case where the Yen pair sellers keep the reins past 149.75, the March 18 swing high of 149.30 and the 149.00 round figure will act as the final defense of the buyers before directing the sellers toward the previous monthly high of near 146.50. Overall, the mixed catalysts join the Easter Monday holiday in major markets and a light calendar to restrict the USDJPY pair’s moves. However, the quote remains on the bull’s radar.
by MTradingGlobal
EUR/USD: Stronger discounts continue!Hello dear friends! What do you think about the current trend of EURUSD? Today, EURUSD continues to decline, seemingly trying to gather strength to bounce back as the US dollar strengthens for the third consecutive day. Currently trading near the 1.0849 level, a quick look at the technical analysis chart shows that the downward momentum is still leading. As a result, breaking below the support level of 1.0871 has solidified the case for implementing a selling strategy. I am watching the 1.0800 level as the next stop, especially if the support level of 1.085 continues to crumble. What about you? What is your prediction for this currency pair?
Short
by RKarina
EURUSD rebounds within a month-old bullish channelEURUSD picks up bids to 1.0930 as traders consolidate weekly loss amid a sluggish Asian session on early Wednesday. In doing so, the Euro pair recovers within a one-month-old bullish trend channel amid upbeat RSI and MACD conditions. It’s worth noting that Tuesday’s Doji candlestick adds strength to the quote’s corrective bounce. With this, the buyers are likely to retake control and can aim for the 1.1000 threshold as an immediate upside target. However, the aforementioned channel’s top line surrounding 1.1010 and the November 2023 peak of 1.1017 will test the pair’s further upside. In a case where the bulls keep the reins past 1.1017, the previous yearly high marked in December around 1.1140 will be in the spotlight. On the contrary, EURUSD sellers will have a hard time taking control as the stated channel’s bottom line joins the 21-bar Exponential Moving Average (EMA) to highlight the 1.0870 as a tough nut to crack for them. Even if the Euro bears manage to smash the 1.0870 key support, an ascending support line from October 2023, near 1.0750, will test the bears. Furthermore, lows marked in December 2023 and last month, respectively near 1.0720 and 1.0690, also act as downside filters before giving control to the sellers. To sum up, EURUSD buyers are likely to keep the reins even if the upside room appears limited.
by MTradingGlobal
Gold eases from record top, focus on $2,150, US NFPGold price snaps seven-day winning streak while retreating from the all-time high (ATH) of nearly $2,165 to $2,156 early Friday. In doing so, the precious metal portrays the consolidation of recent gains ahead of the all-important US employment details for February amid the overbought RSI (14) conditions. It’s worth noting, however, that the bullion still trades above the immediate resistance-turned-support, namely the previous record high marked in 2023 around $2,150. Hence, the XAUUSD sellers need validation from the US jobs report as well as the $2,150 to retake control. Following that, a quick fall toward the late December 2023 peak of around $2,090 and the $2,065-64 support zone can’t be ruled out. Even so, the commodity bears need to remain cautious unless the quote offers a daily closing beneath three-week-old rising support and the 100-SMA, respectively near $2,050 and $2,022. On the flip side, the Gold buyers stay in the driver’s seat and can aim for a 10-month-old ascending resistance line, close to $2,185 by the press time, during further upside. Should the quote manage to ignore the RSI conditions and remain firmer past $2,185, the $2,200 round figure will act as an extra filter toward the north. It’s worth noting that the XAUUSD’s successful trading above $2,200 enables buyers to aim for the 78.6% Fibonacci Extension (FE) of its moves between 2018 and 2022, around $2,336. Overall, Gold price remains on the bullish trend but a pullback appears imminent unless the scheduled data fail to inspire US Dollar’s rebound.
OANDA:XAUUSD
by MTradingGlobal
EURUSD pullback appears imminent but bulls stay hopefulEURUSD bulls take a breather at a six-week high as a rising wedge challenges the quote’s further upside. Apart from the stated bearish chart formation’s top line, the overbought RSI (14) line and sluggish MACD signals also challenge the Euro pair’s further advances. As a result, a pullback toward the 38.2% Fibonacci retracement of the pair’s December 2023 to February 2024 downturn, close to 1.0865, appears imminent. However, a convergence of the 100-bar and 200-bar Exponential Moving Average (EMA), as well as the aforementioned wedge’s bottom line, around 1.0830, appears a tough nut to crack for the sellers. In a case where the quote drops below 1.0830, it confirms a bearish chart pattern suggesting a theoretical target of 1.0610. During the likely fall, the lows marked in late 2023 and in the previous month, respectively near 1.0725 and 1.0700, could offer a breathing space to the bears. On the contrary, the EURUSD pair’s successful rejection of the rising wedge formation, by a clear upside break of the 1.0900 hurdle, could help it challenge the late January peak surrounding 1.0930. Following that, the 1.1000 psychological magnet and the yearly high of near 1.1040 and late 2023 top around 1.1140 will lure the Euro buyers. Overall, the EURUSD pair is likely to witness a pullback amid a lack of more incentive for the bulls. That said, the bearish trend, however, remains off the table until the quote stays beyond 1.0830.
by MTradingGlobal
USDJPY bulls struggle but bears need validation from 149.00USDJPY reverses the first weekly loss in five while printing mild gains around 150.50 early Tuesday. In doing so, the Yen pair seesaws near a three-week-old horizontal resistance surrounding 150.90-151.00. It’s worth noting that the lackluster RSI and sluggish MACD signals suggest further grinding of the quote below the stated key resistance. The bearish momentum, however, appears less likely until the prices stay beyond a convergence of the 200-SMA and a two-month-long rising support line, close to 149.00. Apart from the 149.00 support confluence, January’s high of near 148.80 will also try to challenge the Yen pair sellers before giving them control. Meanwhile, an upside break of the 150.90-151.00 resistance region will allow the USDJPY buyers to aim for the double tops marked during late 2022 and 2023 near 152.00. It should be observed that the Yen pair’s run-up beyond the 152.00 hurdle highlights the 160.00 psychological magnet and the year 1990 peak of around 160.40 for the bulls. In that case, the overbought RSI line and likely adjustments in the Bank of Japan’s (BoJ) monetary policy will challenge the pair’s further upside. Overall, the USDJPY pair’s upside momentum runs out of steam but the bearish move is yet to gain acceptance and hence needs validation from the key support of near 149.00, as well as the US/Japan fundamental catalysts scheduled for publishing during this week.
by MTradingGlobal
USDCHF extends pullback from 15-week high as the key week beginsUSDCHF stays pressured toward 0.8800 early Monday as traders await the key Swiss inflation data, namely the Consumer Price Index (CPI) for February, as well as this week’s Testimony from Fed Chairman Jerome Powell and US employment report for the last month. In doing so, the Swiss Franc pair extends the previous day’s retreat from the highest level since mid-November while reporting a failure to cross a horizontal region comprising multiple levels marked since October 19 and the 200-SMA. Given the bearish MACD signals and the upbeat RSI conditions, the latest pullback is likely to extend, which in turn highlights the 0.8770-65 support zone encompassing the 100-SMA and an upward-sloping trend line from late December. Should the quote manage to break the 0.8765 support, January’s peak of 0.8728 will act as the final defense of the buyers. Meanwhile, the USDCHF pair’s recovery needs validation from the firmer Swiss inflation data and the 200-SMA, close to 0.8835 at the latest. Even so, the aforementioned multi-day-old horizontal area near 0.8885-8910 will be a tough nut to crack for the pair buyers before retaking control. It’s worth noting, however, that the quote’s sustained trading beyond 0.8910, backed by Fed Chair Powell’s dovish tone and downbeat US jobs report, could help the quote cross the 0.9000 psychological magnet to aim for the November 2023 peak surrounding 0.9110. Overall, USDCHF is likely to extend the latest retreat but the pair’s downside appears to have a little room towards the south.
by MTradingGlobal
Bull cross keeps Gold buyers hopeful ahead of Fed InflationThe price of spot Gold (XAUUSD) defends the previous day’s rebound from a weekly low despite lacking momentum around $2,035 early Thursday. In doing so, the yellow metal portrays the market’s anxiety ahead of the US Federal Reserve’s (Fed) preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index. It should be noted that the sluggish MACD signals and steady RSI near 50.00 also depict the trader’s lack of conviction. However, the 50-SMA pierces off the 200-SMA from below and portrays a bullish moving average crossover, namely the Bull Cross, which in turn suggests a short-term upside bias of the market. The same highlights $2,042 as an immediate resistance ahead of an eight-week-old horizontal area surrounding $2,062-66 that holds the key to the bullion’s further advances. In a case where the quote remains firmer past $2,066, the late 2023 peak of around $2,088 and the $2,100 round figure will lure the XAUUSD bulls. On the flip side, an area comprising the 50-SMA and the 200-SMA, around $2,028-26, restricts short-term declines in the Gold price. Following that, the $2,010 level and the previous monthly low of around $2,001 could test the XAUUSD bears before giving them control. In that case, the monthly bottom surrounding $1,984 and the late 2023 trough near $1,973 will be imperative to watch as the final defenses of the buyers. Overall, the Gold buyers are in command ahead of the key US data but the upside room appears limited.
OANDA:XAUUSD
by MTradingGlobal
NZDUSD drops 1.0% on RBNZ’s dovish halt, focus on 0.6080-70NZDUSD marks the biggest daily loss in two weeks as the Reserve Bank of New Zealand (RBNZ) announces monetary policy decision. That said, the RBNZ not only pushed back the concerns about rate hikes while keeping the practices unchanged but Governor Adrian Orr signaled the end of the rate hike trajectory in his press conference and drowned the New Zealand Dollar (NZD). With this, the quote extends the previous day’s U-turn from the 50-SMA hurdle while justifying a looming bear cross on the MACD. However, a convergence of the 200-SMA, an upward-sloping trend line from mid-November 2023 and a 50% Fibonacci ratio of the Kiwi pair’s October-December 2023 upside, near 0.6080-70, appears a tough nut to crack for the bears. Should the quote manage to remain bearish past 0.6070, the odds of witnessing a slump toward the 0.6000 psychological magnet can’t be ruled out. Meanwhile, the 38.2% Fibonacci retracement level and the 50-SMA will restrict the NZDUSD pair’s corrective bounce respectively near 0.6150 and 0.6180. Following that, the 0.6200 round figure and the monthly high of around 0.6220 will lure the Kiwi pair buyers. It should be noted that the quote’s sustained run-up beyond 0.6220 will need validation from the 0.6280 and the 0.6300 upside hurdles before targeting the late 2023 peak of around 0.6370. Overall, the RBNZ disappoints the Kiwi bulls and lures the pair bears but the downside room appears limited.
by MTradingGlobal
GBPUSD bulls keep the reins despite latest inactionGBPUSD stays defensive above 200-SMA after posting the first weekly gain in four, making rounds to 1.2680 early Tuesday. In doing so, the Cable pair defends last week’s upside break of the key SMA support, around 1.2660 by the press time, while also edging higher past a one-week-old rising support line, close to 1.2645 at the latest. Not only the pair’s ability to stay beyond the key SMA and an immediate support line, but an absence of the trend-negative oscillators also keeps the Pound Sterling buyers hopeful. It’s worth noting, however, that the quote’s sustained trading beneath 1.2645 will defy the bullish bias and make it vulnerable to aim for the monthly low surrounding 1.2520. On the other hand, the 1.2700 round figure guards the immediate upside of the GBPUSD pair amid a lack of major data/events, as well as due to the cautious mood ahead of today’s US Durable Goods Orders. That said, the Cable buyers target a downward-sloping resistance line from late December 2023, near 1.2740 as we write. In a case where the Pound Sterling manages to stay firmer past 1.2740, the yearly high of near 1.2785 and the late 2023 peak of 1.2830 will test the upside momentum targeting the 1.3000 psychological magnet. To sum up, the GBPUSD pair’s latest performance appears less important for the bears as far as the price stays beyond the key SMA and the short-term support line.
by MTradingGlobal
EURUSD rebound is elusive, ECB’s Lagarde, US Retail Sales eyedEURUSD struggles to defend the previous day’s corrective bounce from a three-month low early Thursday. In doing so, the Euro pair seesaws around the key 1.0730-20 support zone comprising levels marked since early November. It’s worth noting that the RSI (14) line’s gradual recovery from the oversold territory joins the bearish MACD signals and the early February’s downside break of the key technical levels to keep the sellers hopeful. That said, a fresh selling needs validation from the latest trough surrounding 1.0695 before directing the quote toward the November 10 swing low of around 1.0655. Following that, the early October 2023 swing high of around 1.0640 will be the last defense of the buyers before giving control to the bears. On the flip side, the support-turned-resistance line stretched from early October, around 1.0770 by the press time, guards the immediate recovery of the EURUSD pair. Even if the quote manages to cross the 1.0770 hurdle, it won’t be capable of luring the bulls as the 100-SMA hurdle of around 1.0800 will test the upside momentum. It’s worth noting, however, that any upside momentum must stay beyond the 1.0825-30 resistance confluence comprising the 200-SMA and a five-week-old falling trend line to convince the markets of a bullish trend. Overall, the EURUSD pair remains well beneath the key support-turned-resistances and hence any recovery below 1.0830 remains unconvincing.
by MTradingGlobal
Gold teases sellers above $2,000 as US inflation loomsGold price stays pressured for the fifth consecutive day, licking its wounds around $2,018 early Tuesday, as traders brace for the all-important US Consumer Price Index (CPI) data for January, scheduled for release later in the day. In doing so, the XAUUSD justifies the previous day’s downside break of a two-month-old rising support line, now immediate resistance surrounding $2,021. Also keeping the bullion sellers hopeful is the impending bear cross on the MACD. It’s worth noting, however, that the pre-data anxiety joins the nearly oversold RSI to challenge the precious metal bears. That said, January’s low of around $2,000 appears immediate support to watch for the metal sellers during the further downside. However, a downward-sloping trend line from December 15, 2023, forming part of a broad bearish channel, will challenge the bears near $1,990 afterward. On the flip side, a surprise recovery of the Gold Price needs to stay beyond the support-turned-resistance line of nearly $2,021 to convince the intraday buyers. Even so, the 200-SMA surrounding $2,037 could test the XAUUSD bulls before giving them control. In a case where the precious metal remains firmer past the key SMA hurdle, the top line of an aforementioned channel, close to $2,058 at the latest, will precede a six-week-old horizontal resistance of $2,066 to gain the market’s attention. Overall, the Gold Price is likely to extend the latest fall but the downside room appears limited. Also, the US inflation numbers need to defend the Fed’s efforts to push back the rate cut bias to keep the XAUUSD bears hopeful.
OANDA:XAUUSD
by MTradingGlobal
NZDUSD bulls can ignore recent pullbackNZDUSD drops the most among the G10 currency pairs while reversing the previous weekly gains, the first in four, as market players show a lack of conviction in the hawkish speech from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr. It’s worth noting that a long holiday season in China also allowed the Kiwi pair traders to consolidate the previous week’s upside ahead of the US inflation data, scheduled for release on Tuesday. However, Friday’s falling wedge confirmation and bullish MACD signals, as well as the upbeat RSI (14) line, favor the quote’s gradual rise unless it slips back beneath the 0.6100 resistance-turned-support. Even so, the 100-SMA and the stated bullish chart pattern’s lower line, respectively near 0.6075 and 0.6030, quickly followed by the 0.6000 psychological magnet, will challenge the pair sellers before giving them control. Meanwhile, fresh buying in the NZDUSD pair can wait for a clear upside break of a five-week-old horizontal resistance surrounding 0.6175-80. Following that, the mid-January swing high of around 0.6280 and the late 2023 peak of near 0.6370 will lure the Kiwi pair buyers. In a case where the quote remains firmer past 0.6370, the theoretical target of the falling wedge breakout, namely around 0.6450, will be in the spotlight. Overall, the NZDUSD pair’s latest retreat becomes less attractive unless backed by the downbeat US inflation data, as well as a sustained trading beneath 0.6100.
by MTradingGlobal
GBPUSD struggles with support-turned-resistanceGBPUSD snapped a two-day winning streak on Thursday while retreating from a previous support line stretched from November 22. It’s worth noting, however, that late Thursday’s corrective bounce in the Cable pair renewed bullish bias about the quote, especially amid the upbeat RSI conditions. With this, the support-turned-resistance line surrounding 1.2650 challenges the Pound Sterling buyers. Apart from that, a convergence of the 100 and 200-bar Exponential Moving Average (EMA), around 1.2660 by the press time, also acts as a tough nut to crack for the bulls. In a case where the prices remain firmer past 1.2660, a quick run-up toward a one-month-old resistance line, close to 1.2770 at the latest, can’t be ruled out. Meanwhile, the GBPUSD pair sellers need validation from the previous day’s low of near 1.2570 to take fresh positions. Even so, a two-month-old horizontal support zone surrounding 1.2520–2500 will challenge the quote’s downside momentum. Following that, the mid-November 2023 swing low of around 1.2370 will act as the final defense of the Cable buyers before giving control to the bears. Overall, the GBPUSD pair buyers flex muscles ahead of the key week comprising a slew of UK and US data.
by MTradingGlobal
Gold again retreats from 200-SMA but bears need validationGold price fades bounce off a two-month-old rising support line, failing to cheer the US Dollar’s weakness, as the 200-SMA hurdle again challenges the metal buyers ahead of the second-tier employment clues from the US. Not only the 200-SMA resistance surrounding $2,040 and the pre-data anxiety, steady RSI and sluggish MACD signals also challenge the XAUUSD buyers. Even if the quote manages to cross the $2,040 upside hurdle, a five-week-long horizontal resistance zone of around $2,065 will be a tough nut to crack for the bullion buyers before retaking control. Following that, a run-up toward the late December 2023 peak of near $2,088 will be quick to witness on the chart. Meanwhile, an ascending support line from early December, close to $2,020 by the press time restricts the short-term downside of the Gold price. In a case where the XAUUSD remains bearish past $2,020, the mid-January swing low of near the $2,000 threshold will return to the charts. It’s worth noting, however, that the quote’s weakness past $2,000 makes it vulnerable to slump toward the two-month low of nearly $1,973 before challenging the November 2023 trough surrounding $1,930. Overall, Gold Price remains pressured on a short-term basis but the sellers need validation from technical and fundamental perspectives.
OANDA:XAUUSD
by MTradingGlobal
USDJPY portrays bullish consolidation, further downside expectedOn Tuesday, the USDJPY pair snapped a two-day winning streak while reversing from a 13-day-old horizontal resistance surrounding 148.80-90. The pullback move also justifies the upbeat RSI and bearish MACD signals. With this, the Yen pair is likely to decline further toward the 50-bar Exponential Moving Average (EMA) level of nearly 146.60. However, the 100-EMA of 146.20 and the monthly low of 145.90 will challenge the sellers afterward, suggesting another U-turn in the price. In doing so, the quote manages a fortnight-long trading range that consolidates the pair’s gains marked since late December. Meanwhile, USDJPY buyers remain off the table unless they witness a daily closing beyond the aforementioned horizontal resistance of around 148.80-90. Even so, the late November 2023 swing high of around 149.80 and the 150.00 threshold will test the Yen pair’s upside moves. In a case where the bulls keep the reins past 150.00, the odds of witnessing the quote’s run-up toward the previous yearly high of around 151.90 can’t be ignored. Overall, USDJPY remains in the bullish consolidation mode and hence likely witnessing further downside. However, the yields and the US Dollar moves are telling a different story and may test the sellers, which in turn requires caution on the part of the pair traders.
by MTradingGlobal
EURUSD slides beneath key support as Fed’s Powell defends hawksEURUSD dropped to the lowest level in two months after Federal Reserve (Fed) Chairman Jerome Powell firmly pushed back the March rate cut. The same allowed the Euro pair to keep the previous day’s downside break of a 1.0810 support confluence comprising the 200-bar Exponential Moving Average (EMA) and a four-month-old rising trend line. Additionally keeping the sellers hopeful are the bearish MACD signals. However, the below 50.0 level of the RSI (14) line raises doubts about the downside momentum and hence the bears need validation from December’s low of around 1.0720 to tighten the grips. Following that, October’s high of 1.0695 and early November swing low surrounding 1.0655 will be in the spotlight. Alternatively, the EURUSD rebound needs acceptance from the support-turned-resistance confluence of around 1.0810 and the US ISM Services PMI. Even so, a downward-sloping resistance line from early January, close to 1.0875 at the latest, quickly followed by the 1.0900 threshold, will act as the final defense of the Euro sellers before giving control to the bulls. It’s worth noting, however, that the quote’s successful trading above 1.0900 enables the buyers to aim for the 1.1000 psychological magnet and November’s peak near 1.1020. Overall, EURUSD teases bears on hawkish Fed concerns but the road toward the south appears long and bumpy.
by MTradingGlobal
EURUSD tests falling wedge ahead of Eurozone GDPEURUSD stays pressured within a three-week-old falling wedge bullish chart formation as the pair traders await the first readings of German and the Eurozone Gross Domestic Product (GDP) for Q4 2024 early Tuesday. In doing so, the quote fades the previous day’s corrective bounce off the stated pattern’s bottom line while portraying a third consecutive weekly loss so far. It’s worth noting, however, that the recently downbeat RSI and MACD signals suggest weakness in the bearish trend and hence a quick run-up on the upbeat prints of GDP can’t be ruled out. In that case, the previous support line stretched from early November, now resistance around 1.0880, will restrict the immediate upside of the Euro pair. Following that, the falling wedge’s top line surrounding 1.0900 and the 200-SMA level of 1.0935 will be crucial to watch as the final battle points for the bears before giving control to the buyers. Alternatively, the aforementioned wedge’s lower line of around 1.0800 puts a floor under the EURUSD price. Following that, the 61.8% Fibonacci retracement of the November-December upside, near 1.0760, will precede the 78.6% Fibonacci ratio surrounding 1.0650 to act as the last defense of the pair buyers. In a case where the quote remains bearish past 1.0650, the pair’s lows marked in November and October, respectively near 1.0515 and 1.0450, will lure the sellers. To sum up, EURUSD portrays a bullish chart formation ahead of the bloc’s key growth data.
by MTradingGlobal
EURUSD fades bounce off 11-week-old support on ECB dayWith the US Dollar’s failure to cheer upbeat PMI details, the EURUSD pair managed to rebound from an upward-sloping support line from early November, especially when the activity data from Germany and the Eurozone came in positive. The recovery moves, however, failed to cross the 50-SMA hurdle on a daily closing basis and tease sellers ahead of the all-important monetary policy meeting of the European Central Bank (ECB). While the bloc’s central bank is likely to keep the monetary policy unchanged, the focus will be on the signals for future rate cuts as market players expect the first rate cut before June but the policymakers appeared hesitant for the same of late. That said, any hawkish clues will allow the Euro pair to cross the immediate upside hurdle, namely the 50-SMA hurdle surrounding 1.0920. However, the support-turned-resistance line stretched from November 01, close to 1.0985 at the latest, will precede the 1.1000 psychological magnet to challenge the pair buyers before giving them control. Meanwhile, the downbeat RSI conditions and the limited odds of favoring the ECB hawks suggest further weakening of the pair. The same highlights the aforementioned nine-week-old ascending trend line support line, near 1.0830 by the press time. It’s worth noting that the monthly low of 1.0820 and the previous monthly low of around 1.0720 will act as additional downside filters before a smooth sailing toward the late October swing high of near 1.0700.
by MTradingGlobal