09 Jan, 2024
5 minutes
Daily Technical Analysis January 9th 2024
1. EUR/USD Analysis:
News Summary:
Weak economic growth and slowing inflation in Europe mean the European Central Bank will cut interest rate this year more than market expect. There is 40% chance that the ECB's key interest rate will be between 2% and 3%, and a 35% chance that it will be above 3%. There is only 25% chance that interest rate will fall below 2%, and data released on Monday highlighted the difficult outlook for Germany, Europe's largest economy.
Trend Analysis:
We can see EUR/USD failed to break through and encountered resistance near the 48 hours moving average on H4 chart. In addition, the MACD double line and the energy column began to shrink downward. The sell limit can be placed, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.0870]
Key Resistance Levels: [1.1030]
Pivot Points [1.1000]
2. GBP/USD Analysis:
News Summary:
Britain's overall inflation could fall to the Bank of England's 2% target from as early as May, supported by falling energy price. However, the UK labor market is likely to remain tight and wage growth is likely to be more resilient in 2024. Wage growth is expected to gradually slow to around 3.7% by 2025 from around 7% currently, which may be a concern for the BOE Monetary Policy Committee.
Trend Analysis:
We can see GBP/USD continues to climb upward and is approaching to the previous high, and the MACD double line and energy bar expand upward again. The Bank of England will act very cautiously when it decides to let rates go lower. According to current technical structure, sell limit is reasonable, stop loss is mandatory.
Today's Key Price Levels:
Key Support Levels: [1.2600]
Key Resistance Levels: [1.2840]
Pivot Points [1.2800]