Daily Market Forecast By Capitalcore

[Capitalcore]

USDCAD H4 Chart Bearish Momentum Continues

The USDCAD currency pair, often referred to by its nickname "Loonie," represents the exchange rate between the US Dollar (USD) and the Canadian Dollar (CAD). The USDCAD pair is highly sensitive to economic data releases and global oil prices, given Canada's significant oil exports. Today, the market's attention is on several low-impact economic indicators, including Canada's Building Permits data and the US Cleveland Fed Inflation Expectations, alongside the US Federal Budget Balance. Although these indicators are not expected to cause major volatility, they provide insights into the economic outlook of both countries. For instance, an increase in Canadian building permits could signal future economic activity, potentially offering some support to the CAD. Meanwhile, the USD will be influenced by inflation expectations and the federal budget, which may impact market sentiment if the figures deviate significantly from expectations.

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Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the USDCAD H4 chart, the price has been trending downward, confined within a bearish channel. Out of the last 20 candles, only 6 have been bullish, indicating persistent selling pressure. The price is moving within the lower half of the Bollinger Bands, specifically between the lower band and the middle band, suggesting that the bearish momentum remains strong. Additionally, the USD/CAD price is currently oscillating between the 0.786 and 0.618 Fibonacci retracement levels, highlighting potential support and resistance zones. The MACD histogram is showing bearish signals, with the MACD line staying below the signal line, further confirming the ongoing bearish trend. This combination of technical indicators suggests that the USDCAD might continue its downward trajectory unless significant fundamental changes occur.

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

Capitalcore

[Capitalcore]

Potential Impact of Economic Data on EURUSD

The EUR/USD pair, commonly referred to as the "Fiber" in forex trading circles, is one of the most traded currency pairs in the world. This pair represents the exchange rate between the Euro and the U.S. dollar, reflecting the economic dynamics between the Eurozone and the United States. Observations from the latest H4 chart indicate that the EUR/USD may be poised for a bullish phase following a correction period, suggesting a strong potential for upward movement in the near term.

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Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Upon closer examination of the price action, we can see that this pair has been consolidating within a descending triangle pattern, characterized by a clear resistance around the 1.0950 level and solid support at 1.0900. This pattern typically signals accumulation in technical analysis, where the price action tightens as the market prepares for a potential breakout. The recent behavior of the EUR/USD suggests that traders are possibly gearing up for a move higher, supported by increasing bullish momentum. The MACD indicator further underscores this perspective, with a bullish divergence emerging as the MACD line ascends toward the signal line, indicating growing strength in buying activity. Moreover, the RSI remains robust, positioned above 50 and trending higher, which highlights the persistence of bullish sentiment among traders. This combination of technical signals—particularly the bullish MACD divergence and the strong RSI—strongly points toward a forthcoming bullish breakout. Traders should monitor the 1.0950 resistance level closely; a convincing break above this could open the path to higher resistance levels, affirming the ongoing bullish trend in the EUR/USD market.

DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

Capitalcore

[Capitalcore]

Navigating GBP/USD with Technical Indicators

The GBP/USD forex pair, often referred to as "Cable," is a significant currency pair in the forex market, representing the exchange rate between the British pound sterling and the US dollar. Today, traders are closely monitoring a series of economic data releases from the UK, including GDP, trade balance, and manufacturing production figures. These indicators will provide insights into the UK's economic health, with higher-than-expected figures likely to bolster the pound, especially in light of ongoing concerns about the strength of the US dollar due to mixed economic signals from the US, including retail sales and jobless claims data.

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Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The H4 chart of GBP/USD pair reveals a complex technical scenario. The pair is currently navigating within a rising channel, though recent price action has seen a retracement from the upper Bollinger Band towards the middle band. This correction is evident after a sequence of five consecutive bearish candles. Despite this pullback, the price remains in an overall bullish trend, trading above key Fibonacci retracement levels between 0.618 (1.28790) and 0.5 (1.28292), which are acting as crucial support and resistance. The MACD histogram is showing signs of weakening momentum, but as long as the price stays within the rising channel and above the 0.618 Fibonacci level, the bullish outlook remains intact. However, a break below the lower channel line could signal a potential shift in market sentiment.

DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.

Capitalcore