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Forex Trading Signals and Technical Analysis for August 20, 2024: Today’s Best Market Trends

4 months ago
4 months ago

Table of Contents

AssetPotential DirectionPivot Point1st Support1st Resistance
DXY (US Dollar Index)📈 Bullish101.42100.71102.29
EUR/USD📉 Bearish1.11221.10191.1251
EUR/JPY📉 Bearish164.05159.55167.59
EUR/GBP📉 Bearish0.85840.85080.8619
GBP/USD📈 Bullish1.29501.28851.3032
GBP/JPY📉 Bearish193.25187.04198.80
USD/CHF📈 Bullish0.85850.85030.8730
USD/JPY📉 Bearish149.34144.27152.32
USD/CAD📈 Bullish1.36021.34661.3674
AUD/USD📉 Bearish0.67520.67010.6790
NZD/USD📉 Bearish0.61480.60800.6216
US30 (DJIA)📉 Bearish41,042.1940,475.2641,352.92
DE40 (DAX)📉 Bearish18,593.7018,250.7018,808.10
US500 (S&P 500)📉 Bearish5,673.335,496.715,828.55
BTC/USD (Bitcoin)📉 Bearish61,687.6557,039.0665,483.09
ETH/USD (Ethereum)📉 Bearish2,805.942,523.643,104.48
WTI/USD (Oil)📈 Bullish72.6170.3175.21
XAU/USD (Gold)📉 Bearish2,508.142,483.482,547.78

DXY (US Dollar Index)

Potential Direction: 📈 Bullish

Overall Momentum: Bearish

The DXY index is showing potential for a bullish bounce from the 101.42 pivot point, supported by overlap support aligned with a 161.8% Fibonacci extension. This suggests a key area where buyers might step in, pushing the price toward the first resistance level at 102.29.

  • Technical Indicators:
    • RSI is approaching the 30-level, indicating potential oversold conditions.
    • MACD is near a crossover, suggesting possible bullish momentum.
    • Stochastic oscillator is in the oversold region, further indicating a potential bounce.
  • Support and Resistance Levels:
    • 1st Support: 100.71 – Identified as swing-low support, significant for halting previous declines.
    • 1st Resistance: 102.29 – Overlap resistance, a level that could halt any upward movement.
  • Impact of Economic Events:
    • The upcoming FOMC Minutes on August 21, 2024, could cause significant volatility for USD pairs, including the DXY.
    • Speeches by Fed’s Bostic and Barr on August 20, 2024, may influence the market’s perception of future monetary policy, affecting the DXY’s direction.

EUR/USD

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

The EUR/USD pair could potentially experience a bearish reaction from the 1.1122 pivot point, which is identified as a swing-high resistance aligning with a 100% Fibonacci projection. This suggests a significant level where selling pressures could intensify, pushing the price down toward the first support at 1.1019.

  • Technical Indicators:
    • RSI is approaching overbought territory, indicating potential downward pressure.
    • Bollinger Bands are widening, signaling increased volatility.
    • MACD histogram shows declining momentum, supporting the bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 1.1019 – Pullback support, potential area where price could stabilize.
    • 1st Resistance: 1.1251 – Swing-high resistance, a key level to watch for selling pressure.
  • Impact of Economic Events:
    • The Core Harmonized Index of Consumer Prices (MoM) data release on August 20, 2024, is expected to influence the EUR/USD, particularly if inflation figures surprise the market.
    • The German Buba Monthly Report on August 20, 2024, could provide insights into the economic health of the Eurozone’s largest economy, affecting EUR strength.

EUR/JPY

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

EUR/JPY may see a bearish reaction from the 164.05 pivot point, with overlap resistance close to a 50% Fibonacci retracement level. If the price moves downward, it could find support near 159.55, where previous declines have stabilized.

  • Technical Indicators:
    • RSI is neutral but trending downward, indicating potential selling pressure.
    • MACD is flattening, suggesting a lack of strong momentum in either direction.
    • Ichimoku Cloud analysis shows resistance ahead, supporting the bearish view.
  • Support and Resistance Levels:
    • 1st Support: 159.55 – Pullback support, crucial for maintaining any bullish attempts.
    • 1st Resistance: 167.59 – Pullback resistance, a potential reversal point for bearish momentum.
  • Impact of Economic Events:
    • The Merchandise Trade Balance data release on August 20, 2024, could affect JPY pairs, including EUR/JPY, especially if there are surprises in trade figures.
    • Japanese Exports and Imports (YoY) data may provide further insights into Japan’s economic performance, impacting JPY strength.

EUR/GBP

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

EUR/GBP might react bearishly from the 0.8584 pivot point, identified as an overlap resistance. If the price drops, the first support level at 0.8508 could provide a strong base, aligning with a 50% Fibonacci retracement level.

  • Technical Indicators:
    • RSI is declining, indicating growing bearish momentum.
    • Stochastic oscillator is signaling a possible downturn as it exits the overbought region.
    • Volume analysis shows decreasing buying pressure, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 0.8508 – Pullback support, significant for maintaining price stability.
    • 1st Resistance: 0.8619 – Pullback resistance, where previous bullish movements faced challenges.
  • Impact of Economic Events:
    • The upcoming UK 10-y Bond Auction on August 21, 2024, might impact GBP pairs, including EUR/GBP, depending on demand for UK debt.
    • Eurozone’s Harmonized Index of Consumer Prices (MoM) and Core Harmonized Index of Consumer Prices (YoY) on August 20, 2024, will be key for the EUR, potentially driving EUR/GBP movements.

GBP/USD

Potential Direction: 📈 Bullish

Overall Momentum: Bullish

The GBP/USD pair is showing potential for a bullish reaction from the 1.2950 pivot point, supported by pullback support. This suggests that the price may rise towards the first resistance at 1.3032, which has previously halted bullish advances.

  • Technical Indicators:
    • RSI is climbing, indicating building bullish momentum.
    • MACD is showing a bullish crossover, supporting the upward direction.
    • Bollinger Bands are tightening, suggesting potential for a breakout.
  • Support and Resistance Levels:
    • 1st Support: 1.2885 – Pullback support, significant for maintaining the uptrend.
    • 1st Resistance: 1.3032 – Swing-high resistance, a critical level for further bullish continuation.
  • Impact of Economic Events:
    • The upcoming UK Public Sector Net Borrowing data on August 21, 2024, could influence GBP strength depending on government borrowing levels.
    • GBP/USD traders should also watch the FOMC Minutes on August 21, 2024, as any hints at US monetary policy shifts could impact this pair.

GBP/JPY

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

GBP/JPY might experience a bearish reversal from the 193.25 pivot point, which aligns with a 50% Fibonacci retracement. The first support level at 187.04 could act as a significant area where previous declines have found support.

  • Technical Indicators:
    • RSI is falling, signaling potential selling pressure.
    • MACD histogram is declining, showing reduced bullish momentum.
    • Ichimoku Cloud shows price trading below the cloud, indicating bearish sentiment.
  • Support and Resistance Levels:
    • 1st Support: 187.04 – Pullback support, a potential area of reversal for any bearish movements.
    • 1st Resistance: 198.80 – Pullback resistance, a level where bullish attempts may face selling pressure.
  • Impact of Economic Events:
    • The BoE’s Governor Bailey speech on August 23, 2024, could have significant implications for GBP pairs, particularly if monetary policy guidance is given.
    • Japan’s Merchandise Trade Balance and related data on August 20, 2024, could influence JPY strength, impacting GBP/JPY.

USD/CHF

Potential Direction: 📈 Bullish

Overall Momentum: Neutral

USD/CHF shows potential for a bullish bounce from the 0.8585 pivot point, supported by a 50% Fibonacci retracement level. This could drive the price towards the first resistance at 0.8730.

  • Technical Indicators:
    • RSI is rising, indicating increasing buying momentum.
    • MACD shows a potential bullish crossover, suggesting a shift in trend.
    • Bollinger Bands are widening, indicating increasing volatility.
  • Support and Resistance Levels:
    • 1st Support: 0.8503 – Pullback support, an important area for maintaining bullish momentum.
    • 1st Resistance: 0.8730 – Pullback resistance, where previous bullish attempts have faltered.
  • Impact of Economic Events:
    • The Swiss Trade Balance data on August 20, 2024, may impact CHF pairs, including USD/CHF, especially if the trade balance differs significantly from expectations.
    • The FOMC Minutes on August 21, 2024, will also be crucial, as any USD-related volatility will directly impact USD/CHF.

USD/JPY

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

USD/JPY could see a bearish reaction from the 149.34 pivot point, identified as an overlap resistance aligning with a 38.2% Fibonacci retracement level. The price may drop towards the first support at 144.27 if selling pressure intensifies.

  • Technical Indicators:
    • RSI is falling towards 50, indicating weakening bullish momentum.
    • MACD is showing signs of divergence, hinting at a potential reversal.
    • Stochastic oscillator is trending downward, supporting the bearish view.
  • Support and Resistance Levels:
    • 1st Support: 144.27 – Pullback support, critical for halting any bearish momentum.
    • 1st Resistance: 152.32 – Pullback resistance, where upward attempts may face selling pressure.
  • Impact of Economic Events:
    • The upcoming Japanese Exports and Imports data on August 20, 2024, could affect JPY strength, directly impacting USD/JPY.
    • The FOMC Minutes on August 21, 2024, may also induce volatility in USD/JPY, depending on the insights provided into US monetary policy.

USD/CAD

Potential Direction: 📈 Bullish

Overall Momentum: Bearish

USD/CAD is approaching the 1.3602 pivot point, where it could make a bullish bounce towards the first resistance at 1.3674. This level is identified as overlap resistance, marking a potential area to halt further upward movement.

  • Technical Indicators:
    • RSI is climbing from oversold conditions, indicating a potential upward move.
    • MACD is nearing a bullish crossover, suggesting a reversal in trend.
    • Volume analysis indicates increasing buying interest, supporting the bullish outlook.
  • Support and Resistance Levels:
    • 1st Support: 1.3466 – Pullback support, crucial for maintaining bullish momentum.
    • 1st Resistance: 1.3674 – Overlap resistance, a level where upward movements may face resistance.
  • Impact of Economic Events:
    • The BoC Consumer Price Index Core (YoY) data on August 20, 2024, is critical for USD/CAD traders, as it could influence CAD strength based on inflationary pressures in Canada.
    • Also, keep an eye on the FOMC Minutes on August 21, 2024, as any significant USD moves could directly impact USD/CAD.

AUD/USD

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

AUD/USD is moving towards the 0.6752 pivot point, where it may experience a bearish reversal, pulling back towards the first support at 0.6701.

  • Technical Indicators:
    • RSI is nearing overbought territory, indicating potential selling pressure.
    • MACD histogram is declining, suggesting waning bullish momentum.
    • Volume analysis shows decreasing buying activity, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 0.6701 – Overlap support, critical for halting any downward movement.
    • 1st Resistance: 0.6790 – Swing-high resistance, a significant level for potential reversals.
  • Impact of Economic Events:
    • The upcoming RBA Meeting Minutes on August 20, 2024, will be a key event for AUD/USD traders, as any hints of future monetary policy will affect the AUD.
    • China’s PBoC Interest Rate Decision could also impact AUD/USD, given the strong trade ties between Australia and China.

NZD/USD

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

NZD/USD is rising towards the 0.6148 pivot point, where a bearish reversal could occur, driving the price down to the first support at 0.6080.

  • Technical Indicators:
    • RSI is approaching overbought levels, suggesting a possible pullback.
    • MACD is flattening, indicating weakening bullish momentum.
    • Bollinger Bands are starting to widen, suggesting increased volatility.
  • Support and Resistance Levels:
    • 1st Support: 0.6080 – Pullback support, a key area for maintaining price stability.
    • 1st Resistance: 0.6216 – Swing-high resistance, where further upward movements may face selling pressure.
  • Impact of Economic Events:
    • The NZD Trade Balance data on August 19, 2024, could influence NZD strength, particularly if the figures deviate from expectations.
    • Watch out for the GDT Price Index on August 20, 2024, as dairy prices significantly impact New Zealand’s economy, thus affecting NZD/USD.

US30 (DJIA)

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

The US30 index is approaching the 41,042.19 pivot point, where a bearish reversal may occur, pushing the price towards the first support at 40,475.26.

  • Technical Indicators:
    • RSI is in overbought territory, suggesting a potential pullback.
    • MACD shows signs of divergence, indicating a possible reversal.
    • Volume analysis reveals decreasing buying pressure, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 40,475.26 – Overlap support, a key area for maintaining the bullish trend.
    • 1st Resistance: 41,352.92 – Swing-high resistance, where further upward movements may face challenges.
  • Impact of Economic Events:
    • The FOMC Minutes on August 21, 2024, are expected to be a major event for US indices, as they could provide insights into future interest rate policies.
    • The Jackson Hole Symposium starting on August 22, 2024, could also impact market sentiment, particularly if there are any unexpected announcements.

DE40 (DAX)

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

The DE40 index could face a bearish reversal at the 18,593.70 pivot point, leading to a decline towards the first support at 18,250.70.

  • Technical Indicators:
    • RSI is nearing overbought territory, indicating potential selling pressure.
    • MACD is showing signs of divergence, hinting at a possible reversal.
    • Stochastic oscillator is overbought, supporting the bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 18,250.70 – Pullback support, crucial for maintaining bullish momentum.
    • 1st Resistance: 18,808.10 – Overlap resistance, a level where upward attempts may face resistance.
  • Impact of Economic Events:
    • The German Buba Monthly Report on August 20, 2024, could influence the DE40, particularly if the report highlights economic challenges.
    • Upcoming HCOB Composite PMI data on August 22, 2024, is also crucial as it provides insights into the economic health of the Eurozone, impacting the DE40 index.

US500 (S&P 500)

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

The US500 index is rising towards the 5,673.33 pivot point, where a bearish reversal could push the price back down to the first support at 5,496.71.

  • Technical Indicators:
    • RSI is approaching overbought territory, signaling potential downward pressure.
    • MACD histogram is flattening, indicating weakening bullish momentum.
    • Volume analysis shows decreasing buying activity, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 5,496.71 – Overlap support, crucial for maintaining the uptrend.
    • 1st Resistance: 5,828.55 – Swing-high resistance, a critical level for further bullish continuation.
  • Impact of Economic Events:
    • The FOMC Minutes on August 21, 2024, could be a key event for the US500, as any signals of monetary tightening could weigh on the index.
    • The start of the Jackson Hole Symposium on August 22, 2024, is also expected to influence market sentiment, especially if key policy insights are shared.

BTC/USD (Bitcoin)

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

BTC/USD is approaching the 61,687.65 pivot point, where it may experience a bearish reversal, leading to a decline towards the first support at 57,039.06.

  • Technical Indicators:
    • RSI is trending downward, indicating decreasing bullish momentum.
    • MACD is showing signs of divergence, hinting at a potential reversal.
    • Volume analysis shows decreasing buying pressure, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 57,039.06 – Pullback support, an important area for maintaining price stability.
    • 1st Resistance: 65,483.09 – Overlap resistance, where further upward movements may face selling pressure.
  • Impact of Economic Events:
    • The upcoming FOMC Minutes on August 21, 2024, could have a significant impact on BTC/USD, especially if there are indications of tighter monetary policy.
    • Speeches by Fed officials on August 20, 2024, may also influence market sentiment towards risk assets, including Bitcoin.

ETH/USD (Ethereum)

Potential Direction: 📉 Bearish

Overall Momentum: Neutral

ETH/USD is rising towards the 2,805.94 pivot point, where it could potentially make a bearish reversal, falling towards the first support at 2,523.64.

  • Technical Indicators:
    • RSI is trending towards overbought territory, indicating potential selling pressure.
    • MACD histogram is declining, suggesting weakening bullish momentum.
    • Bollinger Bands are starting to narrow, indicating potential consolidation.
  • Support and Resistance Levels:
    • 1st Support: 2,523.64 – Overlap support, critical for maintaining price stability.
    • 1st Resistance: 3,104.48 – Swing-high resistance, where further upward movements may face selling pressure.
  • Impact of Economic Events:
    • ETH/USD traders should monitor the FOMC Minutes on August 21, 2024, as any indication of tighter monetary policy could weigh on risk assets, including Ethereum.
    • Speeches by Fed officials on August 20, 2024, may also influence sentiment towards cryptocurrencies.

WTI/USD (Oil)

Potential Direction: 📈 Bullish

Overall Momentum: Bearish

WTI/USD is falling towards the 72.61 pivot point, where it could potentially make a bullish bounce, rising towards the first resistance at 75.21.

  • Technical Indicators:
    • RSI is approaching oversold territory, indicating potential upward pressure.
    • MACD is showing signs of a potential bullish crossover, supporting the bullish view.
    • Volume analysis indicates increasing buying interest, supporting a potential bounce.
  • Support and Resistance Levels:
    • 1st Support: 70.31 – Overlap support, crucial for halting any further declines.
    • 1st Resistance: 75.21 – Swing-high resistance, where further upward movements may face resistance.
  • Impact of Economic Events:
    • The API Weekly Crude Oil Stock report on August 20, 2024, could influence WTI prices, especially if there is a significant change in crude oil inventories.
    • The EIA Crude Oil Stocks Change report on August 21, 2024, is also crucial for WTI/USD traders, as it provides insights into US crude oil supply levels.

XAU/USD (Gold)

Potential Direction: 📉 Bearish

Overall Momentum: Bullish

XAU/USD is trading close to the 2,508.14 pivot point, where a bearish reversal may occur, pushing the price towards the first support at 2,483.48.

  • Technical Indicators:
    • RSI is in overbought territory, suggesting potential downward pressure.
    • MACD histogram is declining, indicating weakening bullish momentum.
    • Volume analysis shows decreasing buying interest, supporting a bearish outlook.
  • Support and Resistance Levels:
    • 1st Support: 2,483.48 – Pullback support, a key area for maintaining the uptrend.
    • 1st Resistance: 2,547.78 – Swing-high resistance, a critical level for further bullish continuation.
  • Impact of Economic Events:
    • The FOMC Minutes on August 21, 2024, could be a key event for XAU/USD, as any signals of monetary tightening could weigh on gold prices.
    • The start of the Jackson Hole Symposium on August 22, 2024, is also expected to influence market sentiment towards gold, especially if key policy insights are shared.

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