06 Dec, 2023
5 minutes
Daily Technical Analysis December 6th 2023
Introduction:
Welcome to our daily technical analysis of the financial markets, focusing today on GBP/USD and AUD/USD. Let's dissect the latest news, market trends, and crucial price levels to watch out for.
1. GBP/USD Analysis:
News Summary:
The Bank of England will continue to send messages that interest rate is likely to remain higher for longer and talk of a rate cut seems premature. Economists expect the BOE to keep interest rate unchanged at 5.25%, and for most on the BOE committee, the hawkish tone is less about raising rate than keeping them higher for longer. Although inflation news since November has been somewhat tame, economic activity data has been slightly improved.
Trend Analysis:
We can see GBP/USD continues to drop after rebounding on H4 chart. The current price is gradually moving away from the 48 hours moving average. In addition, the MACD energy column and double line has begun to extend below zero axis. It cannot be ruled out that it will decline further in future, hence, the sell limit could be employed stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1.2470]
Key Resistance Levels: [1.2730]
Pivot Points [1.2650]
2. AUD/USD Analysis:
News Summary:
As the market generally expects the Reserve Bank of Australia to keep interest rate unchanged, it will create a new directional impetus for the Australian dollar. The RBA said the committee was determined to return inflation to target and whether further interest rate increase is needed would depend on data. Following the RBA interest rate decision, investors pared back their bets that it will raise interest rates again. The possibility of raising interest rate in the first half of 2024 is less than 30%, lower than the more than 40% expected before the statement was released.
Trend Analysis:
We can see AUD/USD oscillated to fall and then rebounded after RBA kept interest rate unchanged, and price is approaching 48 hours moving average. However, MACD double line and histogram bar shrank below zero axis, it cannot exclude price will rebound in the short term. Therefore, the reasonable tactic is to set sell limit, stop loss is mandatory.
Today's Key Price Levels:
Key Support Levels: [0.6500]
Key Resistance Levels: [0.6700]
Pivot Points [0.6630]