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Technical Outlook

  

-EUR/USD is trading inside a bullish a bullish channel. The price is trading above both the 50 and 200MA showing bullish pressure.

-The market is ranging for GBP/JPY with price under both the MAs. 161.494 is a resistance that price need to breaks above to form a bullish trend.

US Consumer Price Index (CPI) YoY

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. US CPI rose to 6.5% year on year, a decline from the previous months.

The CPI has been on a steady decline since the Fed’s decision last year to raise interest rates. The US dollar suffered some losses last Thursday aligned with Treasury yields. Investors’ views are that the Federal Reserve should slow down rate hikes since inflation is slowing down. However, officials of the central bank are pushing for tighter monetary policies to further curb inflation.

Report is due Tuesday, 14 February at 13:30 GMT

EURUSD Technical Analysis:

Analysis using price action:

Looking at the daily chart, EURUSD is in the uptrend. The bottom was formed at $0.95360 on 28th Sept 2023. The market rose by 15.63% from this point, accumulating 1491 pips.

As clearly seen in the chart above, the market is trading inside the bullish channel, not breaking the diagonal support or resistance. With more bullish candles, the market does not seem to have many sellers.

The market was seen in the range from 14th Dec to 2nd Jan, after which the 50MA crossed above the 200MA, forming a golden cross, a symbol that the market may be trading further up.

The current high formed is at $1.10330 on 2nd Feb. The market seems to have been on the verge of breaking the channel. Currently, the price is trading between the resistance high at $1.10094 and the previous swing low at $1.04999.

The RSI line is at 41.40, showing neutral overbought and oversold condition. Traders must wait for the price to either break above the resistance or below the support for a clear indication of where the price may be.

Pivot Points: EURUSD

  Support  Resistance
S11.0644R11.0731
S21.0612R21.0786
S31.0557R31.0818

UK Consumer Price Index (CPI) YoY

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

The UK’s year on year inflation reached 10.2%, a slight decline from its peak at 11.1% in October 2022. Although UK CPI came down in December, food prices still surged as fast as it did in 1977. BOE policy makers warned of further rises in inflation amidst a shrinking job market.

Report is due Wednesday, 15 February at 07:00 GMT

GBPJPY Technical Analysis:

Analysis using price action:

GBPJPY currently does not have a clear trend. From the bottom of $149.048 formed on 26th Sept 2023, the price showed significant bullish pressure, taking the prices up by 15.49% and forming a swing high at $172.136. Currently, GBPJPY is trading at $159.224.

The market, from 9th Nov to 19th Dec, was trading inside the bullish channel until the price broke below the channel and started trading down. On the way down, the price also broke a resistance of around $161.43.

The 50MA crossed the 200MA below, forming a death cross on 18th Jan, the market, however, did not affect much, and the range state continued. The RSI line is at 47.81, showing natural overbought and oversold conditions. The previously broken support is now acting as resistance, and the next support would be around $156.041. The clear trend would be visible once the range state is broken when the price breaks above the resistance or below the support.

Pivot Points: GBPJPY

Support Resistance
S1158.37R1158.48
S2158.32R2158.54
S3158.25R3158.59

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