Daily Technical Analysis January 5th 2024

1. GBP/USD Analysis:

News Summary:

The UK service PMI rose to 53.4 in December, an improvement from 50.9 in November. The PMI greater than 50 indicates that the service industry is expanding. S&P Global Markets pointed out that expectation of rate cut by the Bank of England and global economic growth are important reasons for the strong performance of the services industry at the end of year. A further rebound in PMI suggests that the UK would avoid a recession and economic activity may gradually resume in 2024.

Trend Analysis:

We can see GBP/USD found support near 48 hours moving average on H4 chart. However, the MACD double line and energy bar seems to shrink when the price is approaching previous top, hence the sell limit could be used, stop loss is necessary.

Today's Key Price Levels:

Key Support Levels: [1.2590]

Key Resistance Levels: [1.2770]

Pivot Points [1.2730]

2. AUD/USD Analysis:

News Summary:

After more than ten interest rate increases, high interest rate has put more and more Australian families and individuals under financial pressure. On the other hand, some economists predict that the Reserve Bank of Australia will start cutting interest rate in September 2024. But these economists also believe that Australia's official cash rate will remain at 12 years high of 4.35% for most of 2024 before the rate cut.

Trend Analysis:

We can see AUD/USD has been affected by US ADP data and is running below 48 hours moving average. In addition, the MACD double line is trying to test oversold area on H4 chart, the sell limit can be placed, stop loss is compulsory.

Today's Key Price Levels:

Key Support Levels: [0.6600]

Key Resistance Levels: [0.6800]

Pivot Points [0.6750]

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