Forex News Daily Analysis By FXGlory

[FXGlory Ltd]

USDSEK Analysis for 22.05.2024







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


Fundamental Analysis:

The USD/SEK pair is influenced by economic factors such as interest rate decisions by the Federal Reserve and the Riksbank, as well as broader economic indicators from the United States and Sweden. Recently, the Federal Reserve's cautious stance on interest rate hikes has created uncertainty in the market, impacting the USD. Meanwhile, Sweden's economic performance has been robust, with recent data showing strong GDP growth and low unemployment rates. These factors contribute to the SEK's strength. Traders should keep an eye on upcoming economic reports, including US GDP figures and Swedish industrial production data, as these can provide further direction for the USD/SEK pair.



Price Action:

The H4 forex USD/SEK chart shows a bearish trend with the price recently touching new lows. The price action indicates a potential continuation of the downward momentum as the MACD is showing a bearish signal, suggesting that bears might maintain control of the market. Additionally, the price has recently tested the support level around 10.6800, and a break below this level could accelerate the bearish move. Conversely, a bounce from this support could provide a temporary relief rally.



Key Technical Indicators:

MACD (Moving Average Convergence Divergence): The MACD indicator is showing a bearish crossover, indicating increasing downward momentum. This crossover suggests that the price may continue to decline as selling pressure builds.

RSI (Relative Strength Index): The RSI is currently around the 44 level, indicating that the market is bearish but not yet oversold. This suggests there is still room for further downward movement before reaching oversold conditions.

Ichimoku Cloud: The price is trading below the Ichimoku Cloud, indicating a bearish trend. The cloud itself is thick, suggesting strong resistance above the current price level.


Support and Resistance:

Support: The immediate support level is at 10.6800, which is a critical level to watch. A break below this level could lead to further declines.

Resistance: The next significant resistance level to watch is around 10.7500, followed by a higher resistance at approximately 10.8000.


Conclusion and Consideration:

The USD/SEK pair on the H4 chart is showing signs of continued bearish momentum after touching recent lows. Key technical indicators, such as the MACD and RSI, suggest increasing bearish pressure, indicating potential further downside. Traders should monitor the 10.6800 support level closely, as a break below this level could confirm the bearish trend. Additionally, any economic data or statements from the Federal Reserve and Riksbank could impact the USD/SEK pair significantly. It is essential to stay informed and adjust trading strategies accordingly.



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
22.05.2024

 

[FXGlory Ltd]

AUD/NZD daily chart analysis for 23.05.2024







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



Fundamental Analysis:

The AUD NZD price analysis reflects dynamics influenced significantly by economic releases and central bank communications from both Australia and New Zealand. Recently, the economic indicators show a mixed but potent impact on the currencies. Notably, the RBNZ Governor's speech and unexpected retail sales data from New Zealand have provided support to the NZD, suggesting a potentially hawkish monetary stance. Meanwhile, Australia's lower-than-expected Flash Manufacturing PMI suggests a slight economic contraction, contrasting with a stronger Services PMI, indicating resilience in the service sector. These factors cumulatively guide the nuanced fundamental backdrop affecting the AUD-NZD exchange rate.


Price Action:

In the H4 timeframe, the AUDNZD chart forecast demonstrates a distinct movement towards the lower Bollinger Band, touching this boundary multiple times in recent sessions, indicating strong selling pressure. The widening of the bands suggests increasing volatility with a bearish bias as price action continues to test these lower limits. The formation of the recent bearish candles, particularly with significant shadows, underscores a rejection at higher levels, pointing towards a continuation of the current downtrend.


Key Technical Indicators:

Bollinger Bands: The widening of the bands coupled with frequent touches of the lower band underscores heightened volatility and a strong downward momentum. This repeated testing indicates robust support levels that may soon become a pivot point for price action.

MACD: The MACD line remains below the signal line, affirming the bearish sentiment in the market. The proximity to the zero line also suggests a lack of strong momentum upwards, reinforcing the current bearish trend.

RSI: The RSI is currently hovering near the 40 level, which often suggests bearish momentum but not yet oversold, implying there could be more room for downward movement before a potential reversal.


Support and Resistance Levels:

Support: The current and previous touches of the lower Bollinger Band around the 1.0800 mark act as a critical support zone.

Resistance: On the upside, the recent highs near the 1.0850 level form a temporary resistance, beyond which further recovery might face hurdles.


Conclusion and Consideration:

The AUDNZD forecast chart on the H4 timeframe, shows a strong bearish trend underpinned by both technical and fundamental factors. The approaching speech by RBNZ Governor Orr and recent positive retail sales figures in New Zealand contrast with weaker economic signs from Australia, likely fueling the NZD's strength against the AUD. Traders should monitor these levels closely, considering the potential for increased volatility around upcoming economic events and central bank communications.


Disclaimer: This analysis is provided as a general market commentary and does not constitute investment advice. Financial trading involves risks, and it is advised to conduct thorough research or consult a professional advisor before making any investment decisions.


FxGlory
23.05.2024

 

[FXGlory Ltd]

GBPCAD Daily Chart Analysis for 24.05.2024





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


Fundamental Analysis:

The GBP/CAD currency pair reflects the exchange rate between the British Pound and the Canadian Dollar. Fundamental drivers include economic indicators such as consumer confidence, retail sales, and corporate profits. Today, low-impact data from the UK shows GfK Consumer Confidence better than forecasted, which is positive for GBP currency. However, high-impact retail sales data is expected, which could provide significant market movement. On the Canadian side, core retail sales and overall retail sales are anticipated, with both having the potential to impact the CAD. Traders should keep a close eye on these releases as they are pivotal in understanding market sentiment and economic health.


Price Action:

The GBPCAD pair analysis in the H4 timeframe has been showing a bullish trend, characterized by consistent upward movement and price action primarily above previous resistance levels. The pair has been adhering to a series of higher highs and higher lows, reflecting strong buying momentum. Recently, price action has been navigating the upper Bollinger Bands, indicating strong upward pressure and a potential overbought condition in the short term.


Key Technical Indicators:

Bollinger Bands: The candles have been moving on the upper side of the Bollinger Bands for the past 10 days, signaling a strong bullish momentum. This indicates that the pair might be overextended and could face a correction if it doesn't break above the upper band convincingly.

MACD (Moving Average Convergence Divergence): The MACD line is above the signal line and situated well above the zero line, showing strong bullish momentum. This suggests that the buying pressure remains robust, but traders should watch for any divergence or a potential crossover that might indicate a weakening trend.

RSI (Relative Strength Index): The RSI is hovering above 70, indicating that the pair is in overbought territory. This suggests a potential for a corrective pullback or consolidation as the market might need to absorb the recent gains before continuing its upward trajectory.


Support and Resistance:

Support: The immediate support level is found around 1.73700, where the price has previously found buyers and rebounded.

Resistance: The current resistance level is around 1.74600, a psychological level and the recent high, which might be tested if the bullish momentum continues.


Conclusion and Consideration:

The GBPCAD pair on the H4 chart shows strong bullish momentum, underpinned by the GBPCAD’s technical indicators and price action analysis. The Bollinger Bands, MACD, and RSI all point to a continuation of the upward trend, though the RSI warns of a possible short-term correction. Traders should monitor the upcoming economic data releases closely, as they can provide crucial insights and potentially trigger significant price movements. It is prudent to consider risk management strategies given the potential volatility from the economic news.


Disclaimer: The GBPCAD’s 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. The market conditions can change rapidly, and it is essential to stay updated with the latest information.


FxGlory
24.05.2024

 

[FXGlory Ltd]

USDJPY Daily Technical and Fundamental Analysis for 27.05.2024





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


Fundamental Analysis:

The USD/JPY currency pair reflects the exchange rate between the US Dollar (USD) and the Japanese Yen (JPY). Today, the USD is expected to experience low liquidity due to a Bank Holiday in observance of Memorial Day. This typically leads to irregular volatility and less market activity, as US banks will be closed. On the other hand, significant volatility is anticipated for the JPY with Bank of Japan (BOJ) Governor Kazuo Ueda scheduled to speak. Traders will scrutinize his speech for clues on future monetary policy and interest rate changes, which could impact the value of the JPY currency.


Price Action:

The USDJPY pair analysis in the H4 timeframe shows a clear bullish trend. Over the past 10 days, the USD-JPY pair’s price has been moving within an ascending channel. Recently, the price has been closer to the middle Bollinger Band line, suggesting a potential consolidation phase. The last five candles indicate a minor pullback, but the price remains within the upper half of the Bollinger Bands, maintaining a bullish stance.


Key Technical Indicators:

Bollinger Bands: Analyzing the USDJPY’s key technical indicators, the Bollinger Bands have been narrowing, which often precedes a period of low volatility followed by a breakout. The USD JPY’s price has been moving in the upper half of the Bands for the last 10 days, and in the last five candles, it's getting closer to the middle line but remains above it, indicating ongoing bullish momentum albeit with caution for potential consolidation.

MACD (Moving Average Convergence Divergence): The MACD line is slightly above the signal line but the histogram shows decreasing momentum. This suggests that while the bullish trend is intact, the buying pressure may be weakening. Traders should watch for a potential bearish crossover which could indicate a shift in momentum.

RSI (Relative Strength Index): The RSI is currently at 59.42, below the overbought level of 70. This indicates that there is still room for the price to move higher before hitting overbought conditions. The RSI supports the ongoing bullish trend but suggests that the market is not yet overextended.


Support and Resistance:

Support: Immediate support is located at 156.300, which aligns with the middle Bollinger Band and a recent price consolidation area.

Resistance: The nearest resistance level is at 157.600, which coincides with the upper boundary of the ascending channel and recent highs.


Conclusion and Consideration:

The USDJPY pair on the H4 chart forecast shows sustained bullish momentum, supported by the Bollinger Bands, MACD, and RSI indicators. The USDJPY’s current price action within the ascending channel indicates that the bulls are still in control, though the narrowing Bollinger Bands and weakening MACD histogram suggest caution. Traders should be mindful of the potential for increased volatility due to the BOJ Governor's speech, which could impact the JPY significantly. Given the upcoming US Bank Holiday, liquidity might be low, leading to irregular volatility.


Disclaimer: The USD-JPY’s provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis of USDJPY before making any trading decisions. Market conditions can change rapidly, and it is essential to stay updated with the latest information.


FxGlory
27.05.2024