As we head into Wednesday, September 11, 2024, global markets are positioned for potential volatility on the forex charts, driven by a combination of key economic data releases and central bank decisions. Traders are closely monitoring U.S. inflation data and U.K. GDP figures, which are expected to provide significant insight into future central bank policy directions, particularly from the Federal Reserve and Bank of England.
In the currency markets, the GBP/USD pair experienced significant selling pressure, with the British pound weakening further against the U.S. dollar. This downward move was driven by weaker-than-expected U.K. GDP data and a stronger U.S. dollar. Market participants are focused on U.K. trade balance figures and industrial production data, which could further influence the pair’s movement.
Meanwhile, the USD/JPY pair continued its sharp decline after earlier attempts at recovery. The pair’s movements reflected a mix of U.S. dollar weakness and expectations for Japan’s industrial production data. Traders are also closely watching U.S. CPI data for further clues on the Federal Reserve’s next move.
The EUR/USD pair experienced broad weakness, trading lower as the euro remained under pressure amid mixed Eurozone economic data and a stronger U.S. dollar. The market is waiting for the upcoming ECB meeting to assess the central bank’s policy stance.
GBP/USD
Technicals in Focus on Forex Charts
The GBP/USD pair has continued its downward slide, closing around the 1.3058 level after significant selling pressure. The pair has been influenced by weak U.K. GDP data and expectations for further economic weakness. On the technical front, the MACD shows bearish momentum, with histograms expanding below the zero line. The Stochastic Oscillator is in oversold territory, suggesting the potential for a short-term bounce. However, the 14-day RSI remains firmly bearish, indicating continued downside risks.
Trading Strategy: Neutral to Sell
Sell below 1.3070-1.3050 with targets at 1.3020-1.2990 and 1.2970-1.2950, with a stop loss above 1.3100. Alternatively, consider long positions above 1.3100 with targets of 1.3130-1.3160, with stops below 1.3070.
USD/JPY
Technicals in Focus on Forex Charts
The USD/JPY pair saw further declines, trading around the 142.32 level after earlier attempts at recovery. The pair’s movement is driven by weakening demand for the U.S. dollar and concerns about Japan’s upcoming industrial data. On the technical front on the forex charts, the MACD remains bearish, while the Stochastic Oscillator is moving deeper into oversold territory, signaling the possibility of further declines. The 14-day RSI is pointing downward, suggesting that the bearish trend may continue in the near term.
Trading Strategy: Neutral to Sell
Sell below 142.40-142.20 with targets at 141.90-141.60 and 141.30-141.00, with a stop loss above 142.80. Alternatively, consider buying above 142.80 with targets of 143.10-143.40, with stops below 142.50.
EUR/USD
Technicals in Focus on Forex Charts
The EUR/USD pair continued to weaken, trading near the 1.1023 level as the euro faced pressure from mixed Eurozone economic data and a strengthening U.S. dollar. On the technical front, the MACD shows expanding bearish momentum, with the Stochastic Oscillator indicating oversold conditions. The 14-day RSI remains bearish, reflecting the pair’s downward bias, although a short-term bounce may be possible given the oversold conditions.
Trading Strategy: Neutral to Sell
Sell below 1.1030-1.1010 with targets at 1.0980-1.0950 and 1.0920-1.0900, with a stop loss above 1.1060. Alternatively, consider buying above 1.1060 with targets of 1.1090-1.1120, with stops below 1.1030.
Forex Charts Outlook
Looking ahead, the U.S. core CPI data will be closely watched as it could significantly impact market sentiment and provide further clues on the Federal Reserve’s future interest rate path. In the U.K., industrial production and trade balance figures will offer insight into the state of the economy and could further pressure the pound. Japan’s industrial production data is also expected to influence the yen’s movement, particularly for the USD/JPY pair. Traders should prepare for increased volatility on the forex charts as key economic data points are released across major global economies.