FXOpen
The end of last week was quite unfavourable for the US dollar. Following the Jackson Hole symposium, where Jerome Powell confirmed the Fed’s readiness to start lowering the base interest rate, the dollar sharply declined across the board. The USD/CAD pair dropped below 1.3600, GBP/USD reached new 2023 highs at 1.3140, and EUR/USD buyers managed to test the key resistance at 1.1200. The downward trend has continued into the start of this week. Under what conditions might this downtrend slow down, and at what levels could a rebound be expected?
USD/CAD
Sellers of the USD/CAD pair successfully broke through the key 1.3600-1.3580 range that had been holding the price in the first half of this year. The break of this support could pave the way for further price decline and a test of 1.3400-1.3350. Near these levels, a slowdown in the downward movement could be expected, particularly if the news backdrop is favourable. The beginning of an upward correction could lead to a price return to the 1.3600-1.3500 range. Technical analysis of the USD/CAD pair indicates the potential for further decline, as higher timeframes show a strong downward impulse, with no correction patterns yet forming.
Key events to watch in the upcoming trading sessions:
- Today at 14:00 (GMT +3:00): US Mortgage Market Index release
- Today at 17:30 (GMT +3:00): US Crude Oil Inventories release
- Tomorrow at 15:30 (GMT +3:00): Canada Current Account data release
Read analytical USD/CAD price forecasts for 2024 and beyond.
GBP/USD
Sterling buyers have met all the targets mentioned in the previous analysis. The GBP/USD pair not only reached new highs but also strengthened confidently above 1.3200. On higher timeframes, a very strong upward impulse is visible, and if the uptrend continues, the target for buyers will be the 1.3470-1.3400 range. If the price falls below 1.3200, a downward retracement towards 1.3140-1.3100 may begin.
Events that could impact GBP/USD price action:
- Today at 15:15 (GMT +3:00): Speech by Bank of England Monetary Policy Committee member Catherine Mann
- Tomorrow at 09:00 (GMT +3:00): UK Vehicle Registration data for July release
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Weekly Market Wrap With Gary Thomson: S&P 500, AUD/USD, NZD/USD, USD/JPY Analysis, NVDA Shares
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
- S&P Rises
Gold Price Hits New Record
As shown by the XAU/USD chart:
→ Gold has reached a new all-time high;
→ This morning, gold is trading around $2,567 per ounce.
Bullish sentiment is being driven by expectations of a Federal Reserve rate cut next week. According
DAX 40 Reacts Positively to ECB's Rate Cut Decision
Yesterday, the European Central Bank’s Governing Council cut the refinancing rate, as expected, from 4.25% to 3.65%.
The ECB also stated that monetary policy would remain sufficiently restrictive "for as long as necessary" to ensure inflation returns