As we move into Wednesday’s trading session, the global forex market is navigating through a whirlwind of macroeconomic data. Recent U.S. indicators suggest a mixed economic picture—stronger retail sales, but weaker industrial production—while European and U.K. data have provided moderate support to their respective currencies. Market sentiment has been cautiously optimistic, with traders repositioning after central bank decisions and inflation figures released midweek.
The dollar came under pressure as Fed officials reiterated a data-driven stance amid inflationary persistence and softening industrial output. In contrast, the euro and pound showed resilience, while the loonie was boosted by stable Canadian interest rates and energy dynamics.
EUR/USD
Technical Snapshot
The euro held firm against the dollar, pushing higher toward the 1.1375–1.1380 area. This climb was partially fueled by retreating U.S. yields and upbeat Eurozone inflation readings, which softened the impact of the ECB’s dovish tone. The pair has been forming higher lows on the intraday charts, and momentum is leaning bullish. However, the RSI is flirting with overbought territory, and the MACD histogram indicates slowing acceleration.
Trade Idea: Leaning Bullish
Look for buying opportunities above 1.1375 targeting 1.1410 and 1.1445, with a protective stop under 1.1340. A breakdown below 1.1340 may shift momentum toward 1.1310 and 1.1280 levels.
GBP/USD
Technical Snapshot
Sterling posted moderate gains against the greenback, buoyed by a mix of stable labor data and a broad pullback in the U.S. dollar. After rising to the 1.3280 region, the pair faced resistance and drifted back toward 1.3230. Oscillators suggest consolidation is likely in the short term. The RSI sits near 50, while MACD lines are converging—neither pair is currently dominating the price action.
Trade Idea: Range-Bound Bias
Potential long trades above 1.3240 with upside targets at 1.3275 and 1.3310, stop loss under 1.3200.
Alternatively, sell setups below 1.3210 could aim for 1.3180 or deeper at 1.3150, stops placed above 1.3240.
USD/CAD
Technical Snapshot
The U.S. dollar slipped against the Canadian dollar after failing to hold early-session highs. The pair reversed from 1.3970 and closed near 1.3875, pressured by a neutral BoC rate decision and improved crude oil sentiment. Technically, a descending channel is forming, and bearish momentum appears to be building. The RSI is tracking lower, and MACD signals are turning negative.
Trade Idea: Bias Turns Bearish
Sell opportunities could emerge around 1.3890–1.3910 with targets near 1.3850 and 1.3810, stop above 1.3935. Upside reversal trades may only be considered above 1.3935, eyeing 1.3970 and 1.4000 as targets.
What to Watch
Thursday brings another round of high-impact U.S. data, including jobless claims, housing starts, and the Philadelphia Fed Manufacturing Index—all of which could reshape market direction heading into the weekend. Meanwhile, central bank speeches from key Fed members, including Jerome Powell, will likely keep traders on edge as policymakers balance inflation risks with economic slowdown fears.
Across the Atlantic, investors are still digesting the ECB’s lower-than-expected rate move and wondering if more cuts are on the horizon. The energy-sensitive CAD also remains in focus as oil prices react to recent inventory changes and OPEC commentary.
Expect currencies to remain reactive and flows to stay event-driven in the short term.