Navigating the Forex Market Ahead of U.S. Retail Sales (2024)

As the global economy navigates uncertain waters, forex traders in the forex market are keenly observing key currency pairs for opportunities to capitalize on market trends and political events. Market trends show that major pairs like EUR/USD, GBP/USD, AUD/USD, and Gold (XAU/USD) are experiencing varied movements driven by economic releases, central bank speeches, and fluctuations in market sentiment.

EUR/USD Holds Steady at 1.0735 Ahead of Retail Sales Report

the Euro to US Dollar currency pair, also known as ‘Eurodollar,’ is holding steady at 1.0735 USD. This stability comes amidst a flurry of mixed signals from officials at the US Federal Reserve and comments from ECB President Christine Lagarde that have failed to significantly influence the Euro’s position in the forex market. Market participants are now looking towards the upcoming US Retail Sales data for further cues on potential shifts in the currency pair’s trajectory.

EURUSD Daily Chart

In technical analysis terms, the intraday bias for EUR/USD is bullish with the potential for a 20-40 pips gain in forex market. The pivot entry point is currently set at 1.0710, with target levels (TP) at 1.0690 and 1.0670 in the forex market. Risk management strategies suggest limiting risk to 2% per trade. As per the RSI indicator, the market sentiment presents a mixed outlook with a slight lean towards bullishness.

EURUSD Daily Chart

The Pound Weathers UK’s Shrinking GDP Ahead of Retail Sales Report

Meanwhile, the British Pound is under some downward pressure due to concerns about a shrinking UK GDP. Despite this, the currency pair has shown resilience, likely buoyed by slowing price increases as indicated by the latest inflation report. From a technical standpoint, GBP/USD is testing significant levels, including the 200-day moving average, which traders will be keenly watching in the forex market.

For GBP/USD, the intraday bias indicates a continuation of the uptrend, with the potential for a 30-50 pips gain. The pivot entry point is positioned at 1.2535, with target levels (TP) at 1.2590 and 1.2610. Risk management strategies suggest limiting risk to 2% per trade. RSI readings show a mix of signals with a predisposition towards bullish moves.

AUDUSD Performance Post RBA Commentary and Unemployment Report in the Forex Market

Amidst the backdrop of underwhelming employment data from Australia, the Australian Dollar finds a silver lining with favourable equities performance and a general retreat in the US Dollar. Comments from RBA Governor Michele Bullock highlight a nuanced view of the economic landscape, noting that inflation, while persistent, shows signs of deceleration.

AUDUSD Daily Chart

In the technical analysis for AUD/USD, the intraday bias indicates resistance, suggesting a potential 25-55 pips decline in the forex market. The pivot entry point is currently set at 0.6500, with target levels (TP) at 0.6460 and 0.6445. Risk management strategies suggest limiting risk to 2% per trade. The spot market sentiment, according to the RSI, is indicating a lack of upward momentum suggesting a cautious stance.

Gold Prices: A Standoff Between Bearish Pressures and Geopolitical Support

Gold prices remain rangebound but above recent lows, indicating a standoff between bearish pressures from heightened USD value and support from geopolitical tensions in the forex market. As of today, the price per ounce stands at $1,993.20. Despite falling below the key $2000 level, the precious metal continues to find buyers on pullbacks .

In this complex landscape, traders in the precious metal market must stay alert to rapid swings as these competing factors clash for influence over gold’s trajectory in the forex market. The potential for further volatility is underscored by cooling Fed rate-cut bets, which have recently pinned gold below the $2000 mark in the forex market.

Technical Analysis – Gold: Anticipating Range Trading with a Bearish Inclination

In the technical analysis for Gold, the intraday bias indicates anticipation of range trading with a bearish inclination, suggesting a potential move down to levels between 1975.00 and 1985.00. The pivot entry point is currently set at 1998.00, with target levels (TP) at 1985.00 and 1975.00. Risk management strategies suggest limiting risk to 1% per trade. The spot market sentiment, according to recent data, expects uneven price action leaning towards downside risks in the forex market.

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