Daily Market Forecast By Capitalcore

[Capitalcore]

USD CAD H4 Chart Strong Resistance Breakdown Possible

The USD/CAD, often referred to as the "Loonie," is a highly liquid currency pair reflecting the economic dynamics between the United States and Canada. As the market anticipates today's fundamental news, key events include the release of the New York Manufacturing Index and speeches by Federal Reserve officials, both expected to lend strength to USD if outcomes are hawkish. Conversely, Canada awaits significant CPI data and housing starts, which could influence CAD strength positively if actual results surpass forecasts. These events make USD/CAD pivotal for forex traders assessing daily price action based on robust technical and fundamental analysis.

Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the USD/CAD H4 chart, the market has begun a sharp bearish momentum marked by significant downward movements with brief bullish corrections. Currently, the price action indicates a minor bullish correction phase, yet the 0.236 Fibonacci retracement level at 1.38442 appears distant given the recent shallow corrective patterns. The bearish force seems robust enough to challenge and potentially break the longstanding historical support zone at around 1.37500. Technical indicators support bearish momentum: the Stochastic indicator stands at 22.26 and 16.13, signaling an oversold market nearing bearish exhaustion but still without confirmed bullish signals. Similarly, the RSI at 33.17 indicates strong selling pressure. The Ichimoku Cloud, spanning levels from 1.37727 to 1.39491, reinforces bearish sentiment as prices remain decisively below the cloud.

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

Capitalcore

[Capitalcore]

EURGBP H4 Chart Stochastic Indicator Analysis

The EUR/GBP forex pair, often called "Chunnel," represents the value relationship between the Euro (EUR) and British Pound Sterling (GBP). Known for reflecting economic health and policy decisions within the Eurozone and the UK, the pair often responds to economic indicators and central bank announcements. Today's upcoming economic indicators include critical inflation data from the UK—such as CPI, Core CPI, PPI, and RPI—significant as they shape the Bank of England’s monetary policy decisions. Stronger-than-expected results will typically bolster the GBP, potentially driving EUR/GBP lower. Conversely, weaker data might provide upward pressure for EUR/GBP. Additionally, Germany's influential ifo Business Climate Index and Eurozone's CPI could further influence the pair’s movements, giving traders vital signals for potential price shifts today.

Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the EUR/GBP H4 chart, despite the recent bearish trend in the market, price action demonstrates significant resistance near recent highs, unable to sustain upward momentum and sharply reversing downwards. Currently, the candles have been navigating within a clear bearish channel, suggesting a continuation towards the channel’s midline. Ichimoku indicators support this bearish outlook, with recent price action below the Ichimoku cloud, showing resistance around 0.87605, 0.87708, and immediate bearish sentiment below 0.87531. The stochastic oscillator at 13.76 and 13.28 is in oversold territory, potentially indicating short-term bullish correction before further downside continuation. Moreover, the MACD (-0.00042, 0.00022, 0.00064) is negative, confirming bearish momentum dominance. Therefore, a bullish reversal that breaches the recent highs appears improbable on the first attempt.

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

Capitalcore