
The forex market can be highly volatile, affected by numerous global events. As the forex trading community anticipates Donald Trump’s inauguration and a slew of executive actions, EUR/USD, EUR/GBP, and GBP/USD are showing short-term bullish trends.
EUR/USD in Recovery Mode
The EUR/USD has been on a path of recovery since hitting a two-year low of $1.0178. The pair is now eyeing a minor resistance zone between $1.0333 and $1.0344, marked by the November and mid-December lows. Last week, this resistance held firm, but current momentum might push EUR/USD higher, testing the $1.0436 to $1.0460 resistance area.
Technical Levels:
- Resistance: $1.0333 – $1.0344; $1.0436 – $1.0460
- Support: $1.0225
EUR/GBP Remains Bid
The EUR/GBP has climbed back above its 200-day Simple Moving Average (SMA) at £0.8420, showcasing bullish forex signals. A break above Tuesday’s high of £0.8462 would open up targets towards the £0.8600 region. Support below the 200-day SMA is at the 9 January high of £0.8406, with additional support between the mid-October and mid-November highs at £0.8380 to £0.8364.
Technical Levels:
- Resistance: £0.8462; £0.8600
- Support: £0.8420; £0.8406; £0.8380 – £0.8364
GBP/USD Hovers Above 13-Month Low
The GBP/USD remains trading above its 15-month low of $1.2100. The pair is now aiming for Wednesday’s high of $1.2307. If it breaches this level, the next target will be early January’s low at $1.2353. However, should the pair fall through the $1.2100 mark, it might test the October 2023 low of $1.2038 and the key psychological level at $1.2000.
Technical Levels:
- Resistance: $1.2307; $1.2353
- Support: $1.2100; $1.2038; $1.2000
Market Implications Ahead of Trump’s Inauguration
As forex traders brace for Donald Trump to take office, the markets are preparing for potential volatility. His policies and executive actions could influence forex strategies, particularly with pairs involving the U.S. dollar. Comprehensive forex analysis will be crucial in navigating this period.
The uncertainties surrounding Trump’s administration policies often create fluctuating trends in the forex market, directly affecting forex brokers, forex signals, and trading strategies.
Conclusion
In summary, as Trump’s inauguration approaches, the forex market is showing significant activity with EUR/USD, EUR/GBP, and GBP/USD indicating short-term bullish trends. Forex traders should keep a close eye on these currency pairs, ensuring they are informed by the latest forex news and adapting their forex strategies accordingly. Staying updated with the ongoing developments will help in making informed trading decisions in this volatile forex market landscape.