Daily Market Forecast By Capitalcore

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USD/JPY H4 Chart Signals Bullish Breakout

The USD/JPY currency pair, often referred to as the "Gopher," is a popular forex trading pair that tracks the exchange rate between the US Dollar and the Japanese Yen. It is one of the most traded currency pairs globally, offering high liquidity and volatility, making it a favorite among traders. Today's trading dynamics are likely to be influenced by economic indicators from both Japan and the US, including the Japanese Ministry of Finance's data on capital expenditures and the Jibun Bank Manufacturing PMI.
Fundamentally, the USD/JPY pair may experience increased volatility today due to key economic data releases. The Japanese capital expenditures report, a significant indicator of economic health, suggests that if the actual figures exceed the forecast, the Yen could strengthen as increased business investment signals optimism in the economy. Additionally, the Jibun Bank Manufacturing PMI is set to provide insights into Japan's manufacturing sector's health, with readings above 50 indicating expansion. However, with US banks closed for Labor Day, reduced liquidity in USD trading could result in erratic price movements. Traders should be cautious of potential spikes in volatility due to the lower trading volume, which might amplify reactions to the Japanese economic releases.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
From a technical perspective, the USD/JPY H4 chart indicates a light bullish trend, with recent price action dominated by bullish candlesticks. The pair is currently trading near the upper Bollinger Band, signaling strong upward momentum. The price has been oscillating between the middle and upper Bollinger Bands, suggesting a prevailing bullish sentiment. The Bollinger Bands are widening, which typically indicates increasing volatility. Furthermore, the price is situated between the 0.5 and 0.382 Fibonacci retracement levels, a zone that often serves as a resistance area. If the price breaks above this zone, it may continue its upward trajectory; otherwise, a reversal could be possible if the bearish candles gain dominance. The Willy indicator shows mixed signals but leans slightly towards overbought conditions, warranting caution for potential corrections.

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

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[Capitalcore]

NZDUSD Price Action Breaks Key Fibonacci Level

The NZDUSD, commonly referred to as the “Kiwi,” is a major forex pair consisting of the New Zealand Dollar (NZD) and the United States Dollar (USD). As a commodity currency pair, NZD/USD is influenced by global economic trends, commodity prices, and interest rate differentials. The pair is popular among traders for its liquidity and the potential for high volatility, often responding sharply to economic data and geopolitical developments.
Today’s key economic events could significantly impact the NZDUSD pair, particularly any updates related to New Zealand's trade balance, which plays a critical role in the currency's valuation. Positive data from New Zealand could strengthen the Kiwi, while any negative sentiment from the US market could drive the NZD USD forex pair lower. Additionally, any changes in the Federal Reserve’s stance on interest rates could also lead to volatility, as traders assess the future path of monetary policy in the US. Market participants will closely monitor these developments, which could set the tone for short-term price movements in the NZDUSD forex pair.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The H4 chart of NZDUSD displays a clear bearish trend, with 13 out of the last 19 candles being bearish, including the most recent one. The price has moved from the upper Bollinger Band towards the middle band and then to the lower band, where it is currently hovering, indicating strong selling pressure. The expansion of the Bollinger Bands suggests increasing volatility, supporting the downward movement. The price has recently broken below the 0.236 Fibonacci retracement level and is now between the 0.382 Fibonacci level, highlighting a significant retracement from its recent highs. The RSI indicator is trending below 50 and approaching oversold territory, currently around 33.18, suggesting that while the bearish momentum is strong, there might be a potential for a short-term correction or consolidation before continuing its downward trajectory.

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

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[Capitalcore]

AUDUSD bullish reversal on the H4 chart

The AUD/USD currency pair, also known as the "Aussie," is one of the most traded forex pairs, representing the strength and dynamics of the Australian dollar against the US dollar. With Australia being a resource-rich economy and the US being the world’s largest economy, the AUD USD pair is influenced by commodity prices, interest rate differentials, and overall market risk sentiment. Today, the market's attention is focused on the upcoming news from the Australian Bureau of Statistics regarding trade balance, as well as speeches by RBA Governor Michele Bullock, which may offer clues on future monetary policy. Additionally, key USD economic indicators, such as job cuts and labor market data, will further impact the direction of this pair. If Australia’s export data beats expectations or the RBA signals hawkish intentions, the Aussie could strengthen, while weak US labor data could also support a rise in AUD/USD.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the AUD/USD H4 chart, we see several technical factors at play. The pair has been in a clear downtrend, moving from the 0 Fibonacci level down to below the 0.236 Fibonacci retracement level. However, the recent Aussie’s price action shows a recovery, with four out of the last five candles being positive, pushing the price above the 0.236 Fibonacci level. If this momentum continues, AUD/USD could aim to return to the 0 Fibonacci level. In terms of Ichimoku, the price dropped below the cloud but is now making an effort to re-enter and test it, indicating potential bullish momentum. Additionally, the MACD is showing signs of a possible bullish crossover, supported by a decreasing bearish histogram, which could signal further upward movement in the short term for AUD USD forex pair.

• 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]

EURUSD H4 RSI and Fibonacci Levels in Focus

EUR/USD forex pair, often referred to as "Fiber," is one of the most traded currency pairs in the Forex market, reflecting the value of the Euro against the U.S. Dollar. This pair is highly influenced by the economic and political events in both the Eurozone and the United States, making it a vital indicator of the global economy's health. Today’s upcoming news includes significant economic reports from both the Eurozone and the U.S., which are expected to impact the direction of EUR/USD price.
From a fundamental perspective, key reports from the Eurozone, such as industrial output, foreign trade balance, and employment data, will be essential to monitor. Better-than-expected results could strengthen the Euro, especially if industrial output and foreign trade data outperform forecasts, indicating robust economic health. On the U.S. side, the upcoming Non-Farm Payrolls (NFP) and unemployment rate data are likely to dictate the market's sentiment toward the U.S. Dollar. A positive NFP figure would indicate a stronger labor market, potentially boosting the Dollar. Additionally, speeches from key Federal Reserve officials, like John Williams and Christopher Waller, may provide clues on future U.S. monetary policy. Any hints of further interest rate hikes could support the Dollar, pressuring the EUR/USD lower.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
In the technical analysis based on the EUR/USD H4 chart, the pair is showing a clear uptrend, supported by the last three bullish candles. The price is currently moving from the middle Bollinger Band toward the upper band, even touching the upper line. This suggests increasing volatility and a possible continuation of the upward movement. Additionally, the price has moved from the 0.382 Fibonacci retracement level to the 0.236 level and is now hovering near this point, showing potential to rise further toward the 0.0 Fibonacci retracement level. The Bollinger Bands are widening, indicating higher market volatility, while the RSI is gradually climbing, signaling further bullish momentum. If the price breaks the 0.236 Fibonacci level convincingly, the next target could be the 0.0 Fibonacci level around 1.12029, with strong support at the 1.1050 region.

• 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