Daily Market Analysis and Forex News
Mid-Week Technical Outlook: Major Currencies
A sense of anticipation gripped financial markets today as investors prepared for the US inflation data on Thursday.
Market players remain hopeful that inflation may have cooled further in December and this seems to be supporting global equity markets. In the currency space, the dollar remains firm while gold has struggled to conquer the $1880 resistance level. With less than 24 hours until the key US inflation report is published, markets may remain on standby waiting for a fundamental spark. Despite the expected lack of action over the next few hours, this period of calm could help identify some potential opportunities before the CPI storm!
EURUSD waiting for softer USD?
This currency pair remains firmly bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading above the 50, 100, and 200-day SMA while the MACD trades above zero. The recent breakout above 1.0700 could signal further upside with 1.0770 with 1.0900 acting as key levels of interest. Should prices slip back under 1.0700, the currency pair could experience a selloff towards 1.0505.
GBPUSD trapped within a range
It seems like the GBPUSD remains trapped within a very wide range on the daily charts. Support can be found at 1.1900 and resistance at 1.2210. A potent fundamental spark may be needed for the currency pair to resume the uptrend or experience a reversal lower. The pending US inflation report could inject fresh life into the GBPUSD, with a softer inflation report favour GBPUSD bulls. Looking at the technical picture, a strong breakout above 1.2210 may signal an incline toward 1.2300 and 1.2460, respectively.
USDJPY breakout on horizon
As the subtitle says, the USDJPY could be gearing up for a breakout. Prices remain trapped within a 450 range with bulls and bears waiting for a direction catalyst. This may come in the form of the pending US inflation data which may determine the USDJPY’s short-term outlook. A solid breakout and daily close below 130.00 could signal a selloff towards 127.00. Should prices push back above 134.50, the next key level of interest can be found at 138.00.