Daily forex market analysis - CSFX

[CSFX.Market]

US Dollar Weakens on Inflation and Debt Worries.​

EUR/USD continues to build on recent gains, trading above 1.1250 in early London trading. US Dollar softness, driven by Moody’s credit downgrade, cooling inflation, and uncertainties surrounding US tariffs, is lending support to the pair.

With no major US data scheduled during the New York session, market focus for American traders shifts to Fed speakers and the potential for more dovish commentary. Meanwhile, UK-based traders await Wednesday’s UK CPI release, which could influence EUR/GBP sentiment and cross-hedging activity.

Exponential

• MA 10: 1.1230 | Positive Crossover | Bullish
• MA 20: 1.1235 | Positive Crossover | Bullish
• MA 50: 1.1107 | Positive Crossover | Bullish

Simple

• MA 10: 1.1211 | Positive Crossover | Bullish
• MA 20: 1.1279 | Negative Crossover | Bearish
• MA 50: 1.1121 | Positive Crossover | Bullish

• RSI: 54.28 | Buy Zone | Bullish
• Stochastic: 49.14 | Buy Zone | Neutral

• Resistance: R1: 1.1529 | R2: 1.1717
• Support: S1: 1.0922 | S2: 1.0734

Limit Buy: 1.1189 | Take Profit: 1.1375 | Stop Loss: 1.1081

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[CSFX.Market]

Dollar in Freefall: Euro, Pound, and Aussie Surge as Fed Dovish Tilt Sparks Forex Shake-Up.​

The euro gained further traction against the US Dollar during the UK and early US trading hours, with EUR/USD approaching the 1.1350 mark. The pair is finding support from persistent USD softness linked to trade tensions and deteriorating US fiscal credibility.

Traders in both the London and New York markets are now eyeing upcoming speeches from Federal Reserve and European Central Bank officials for clarity on monetary policy direction. The divergence remains a key driver:

• ECB recently cut its deposit rate by 25 basis points to 2.25%.
• Fed remains on hold but is expected to cut rates twice before year-end due to cooling inflation and slower growth.

The market’s muted reaction to the US-China trade truce reflects skepticism, especially since the agreement lacks enforceable mechanisms and still retains a 20% tariff on fentanyl-linked imports. This undermines optimism and reduces confidence in the Greenback’s rebound.

Exponential MA

• MA 10: 1.1248 – Bullish
• MA 20: 1.1244 – Bullish
• MA 50: 1.1116 – Bullish

Simple MA

• MA 10: 1.1213 – Bullish
• MA 20: 1.1279 – Bullish
• MA 50: 1.1130 – Bullish

• RSI: 57.23 – In buy zone
• Stochastic Oscillator: 68.04 – Neutral to bullish

• R1: 1.1529 | R2: 1.1717
• S1: 1.0922 | S2: 1.0734

Overall Sentiment: Bullish
Market Direction: Buy

Trade Suggestion

• Entry: Limit Buy at 1.1263
• Take Profit: 1.1425
• Stop Loss: 1.1168

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GBP/USD: Sterling Soars to 3-Year High on Hotter UK Inflation​

FULL FOREX UPDATE - CAPITAL STREET FX​

 

[CSFX.Market]

Dollar in Freefall: Euro, Pound, and Aussie Surge as Fed Dovish Tilt Sparks Forex Shake-Up.​

The euro gained further traction against the US Dollar during the UK and early US trading hours, with EUR/USD approaching the 1.1350 mark. The pair is finding support from persistent USD softness linked to trade tensions and deteriorating US fiscal credibility.

Traders in both the London and New York markets are now eyeing upcoming speeches from Federal Reserve and European Central Bank officials for clarity on monetary policy direction. The divergence remains a key driver:

• ECB recently cut its deposit rate by 25 basis points to 2.25%.
• Fed remains on hold but is expected to cut rates twice before year-end due to cooling inflation and slower growth.

The market’s muted reaction to the US-China trade truce reflects skepticism, especially since the agreement lacks enforceable mechanisms and still retains a 20% tariff on fentanyl-linked imports. This undermines optimism and reduces confidence in the Greenback’s rebound.

Exponential MA

• MA 10: 1.1248 – Bullish
• MA 20: 1.1244 – Bullish
• MA 50: 1.1116 – Bullish

Simple MA

• MA 10: 1.1213 – Bullish
• MA 20: 1.1279 – Bullish
• MA 50: 1.1130 – Bullish

• RSI: 57.23 – In buy zone
• Stochastic Oscillator: 68.04 – Neutral to bullish

• R1: 1.1529 | R2: 1.1717
• S1: 1.0922 | S2: 1.0734

Overall Sentiment: Bullish
Market Direction: Buy

Trade Suggestion

• Entry: Limit Buy at 1.1263
• Take Profit: 1.1425
• Stop Loss: 1.1168

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FULL FOREX UPDATE - CAPITAL STREET FX​