Daily Technical Analysis

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on GBP/USD and AUD/USD. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. GBP/USD Analysis:  

News Summary: 

The stronger-than-expected UK inflation data raised the risk that the Bank of England may need to raise interest rates again or rates may remain higher for longer, and then UK government bond yields rose. CPI data will only put further pressure on the BOE Monetary Policy Committee to decide whether to continue to apply pressure on interest rates to reduce inflation to acceptable levels.  

Trend Analysis: 

We can see GBP/USD tried to make a breakthrough but failed because of strong resistance from 48 hours moving average on H4 chart. On the other hand, MACD double line and histogram bar is moving under zero axis, it is a sign of continued downtrend. Owing to strong US dollar, the pound is experiencing selling process. The reasonable tactic is to set sell limit, stop loss is compulsory.   

Today's Key Price Levels: 

Key Support Levels: [1.2050] 

Key Resistance Levels: [1.2210] 

Pivot Points [1.2170]

2. AUD/USD Analysis:  

News Summary: 

The performance of the Australian dollar is closely to the strength of the US dollar. Currently, the Israel-Palestine conflict, stronger dollar and the appeal of US interest rate increase are affecting market dynamics. In addition, the Australian dollar is considered a risk currency in the context of global capital flows owing to its strong correlation with commodities. This factor also plays a crucial role in shaping currency performance.   

Trend Analysis: 

We can see AUD/USD attempted to rally at the beginning of this week, but upward pressure on the market appears to be continuing to limit rising space. The main question now is whether the market is ready to withstand further declines or whether it will continue to fluctuate in the lower range of recent trends. A sharp break below the 0.63 level could push the market towards the 0.62 level. The market is currently at expansion levels, so a rebound could represent another selling opportunity.    

Today's Key Price Levels: 

Key Support Levels: [0.6200] 

Key Resistance Levels: [0.6370] 

Pivot Points [0.6330]