Forex News Daily Market Forecast By Capitalcore

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GBP/USD Analysis: Cable Declines in Bearish Channel

The GBP/USD forex pair, often nicknamed "Cable" due to its historical connection via the transatlantic telegraph cable, is one of the most actively traded pairs in the forex market. It represents the exchange rate between the British pound sterling (GBP) and the US dollar (USD), two of the world's most influential currencies. Traders closely monitor this pair’s forecast for insights into the economic conditions and monetary policies of the UK and the US.
Today’s GBP/USD news analysis features several critical USD-focused reports, notably the ISM Manufacturing PMI and the ISM Manufacturing Prices Index. Both serve as leading indicators of economic health, inflation trends, and consumer confidence. Positive data exceeding forecasts could strengthen the USD by signaling economic expansion, potentially impacting the GBP/USD prices negatively. Simultaneously, GBP traders are attentive to monetary aggregates and mortgage approval data, revealing consumer confidence and lending conditions. Given these developments, the pair's movement will likely hinge on divergent economic trends and central bank policy trajectories. The Fed's hawkish signals via speakers like Richmond Fed President Thomas Barkin could further influence market sentiment.

Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The GBP/USD H4 chart reveals a strong downtrend within a well-defined descending channel. The Cable’s price action is consistently testing and respecting the channel boundaries, suggesting further bearish momentum. The Stochastic RSI shows oversold conditions with its oscillator near the lower band, hinting at potential short-term consolidation or a corrective pullback. The MACD histogram indicates a strong GBP/USD bearish bias, with the signal line diverging below the zero level. These indicators collectively support the likelihood of continued bearish pressure unless major support levels, such as 1.2380, hold firm.
For traders, a break below the lower channel boundary might signal further downside to key levels around 1.2300, while a bullish reversal would require a breach of the upper channel and sustained movement above 1.2550.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

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EURUSD H4 Price Action and Technical Outlook

The EURUSD, commonly known as "Fiber," is the most actively traded currency pair in the forex market, representing the exchange rate between the Euro and the US Dollar. It serves as a barometer for global economic strength, monetary policies, and market sentiment due to its high liquidity and correlation with major economic indicators.
Today, the EUR/USD is navigating a mix of fundamental drivers, including the German CPI release, which reflects inflationary pressures in the Eurozone, and low liquidity caused by the Italian Epiphany holiday, which could lead to irregular volatility. While stronger-than-expected German CPI data could support the Euro by bolstering expectations for further European Central Bank tightening, traders are also closely monitoring US PMI reports and remarks from Federal Reserve Governor Lisa Cook for insights into future US interest rate policies. These events could either amplify the USD's strength or weaken it, depending on their outcomes, making the EURUSD’s price highly sensitive to today’s market developments.

Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The EURUSD H4 chart indicates a clear recovery from a bearish trend, as shown by the Fibonacci retracement levels and the Ichimoku Cloud. The price reversed sharply after touching the 1.000 Fibonacci level and has since recorded several bullish candles. This rally brought the EUR-USD pair up to the 0.786 Fib level, a key resistance point. The opening candles of the current session have been red, suggesting a potential pullback or consolidation phase. Traders should closely watch whether the price can break above the 0.786 Fib resistance, signaling continuation of the bullish trend, or if it retreats further. The Ichimoku Cloud indicates neutral-to-bearish sentiment as the price remains under the cloud, reflecting resistance at higher levels. However, the RSI is climbing from oversold levels and currently hovers around 38.6, indicating improving bullish momentum. While the near-term price action shows hesitation, breaking through the resistance could confirm bullish continuation. Conversely, failure to hold above the 0.786 Fib level could lead to a bearish reversal.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

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USDNZD H4 Technical Analysis Overview

The USDNZD forex pair, affectionately known as the "Kiwi Dollar," represents the exchange rate between the US Dollar and the New Zealand Dollar. Today, USD/NZD is shaped by strong US economic indicators, including an ISM Services PMI rising to 53.5 from 52.1 and a slight decline in JOLTS Job Openings to 7.73M from 7.74M. Additionally, the New Zealand GDT Price Index has decreased by 2.8%, alongside the upcoming US 10-year Bond Auction yielding 4.24%, up from 2.7%. These fundamental factors suggest potential volatility in the USD NZD pair, aligning with broader USD-NZD daily chart technical and fundamental analysis trends that highlight the influence of key economic data on currency movements.

Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the uploaded USDNZD H4 chart, the price line has recently broken below the Ichimoku cloud, a critical signal in USDNZD price action strategies, indicating a possible bearish trend. The MACD indicator reinforces this bearish potential, suggesting that the current bullish phase may be nearing its end. This technical setup, combined with today's fundamental news, underscores a pivotal moment for traders focusing on USD/NZD daily chart technical and fundamental analysis, as similar patterns may impact the broader forex market dynamics.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

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