Daily Market Pick - 14th August, 2023

Welcome to a new week. Let's see what four major currencies will likely be doing today. Let's start with EURUSD.

EURUSD

The current EUR/USD chart reflects a bearish momentum, indicating a prevailing downward pattern. This downward sentiment is attributed to the price breaching an ascending support line, implying the potential for extended downward movement. The potential scenario envisions the price maintaining its bearish trajectory towards the initial support level of 1.0785. The significance of this initial support level at 1.0785 lies in its role as a pullback support, while the subsequent support at 1.0635 gains further credibility as a swing low support. Conversely, the primary resistance level at 1.0995 holds significance as an overlapping resistance, with a secondary resistance at 1.1228 identified as a resistance level formed by multiple swing highs.

GBPUSD

The current GBP/USD chart displays a bearish momentum, indicative of an ongoing downward trend. This bearish momentum is corroborated by the price breaching an ascending support line, hinting at the potential for a sustained downward trajectory. In the immediate future, there exists a likelihood of the price undergoing a temporary uptick towards the initial resistance level at 1.3141, prior to reversing its course and resuming its downward movement. The significance of the first support level at 1.2649 stems from its function as an overlapping support, while the second support at 1.2437 is bolstered as a pullback support. In contrast, the first resistance level at 1.3141 is identified as a resistance formed by a previous swing high.

NZDUSD

The present trajectory of the NZD/USD chart suggests a bearish momentum, indicating a downward shift. In this context, there exists the possibility for the price to prolong its bearish trajectory, with a focus on reaching the initial support level. The first support level at 0.5955 is a support threshold that coincides with the 127.20% Fibonacci extension level. Additionally, the second support rests at 0.5769, recognized as a pullback support level. On the positive side, attention is drawn to the initial resistance level at 0.6059, noteworthy for its role as an overlapping resistance. Furthermore, a second resistance at 0.6156 is pinpointed as a pullback resistance, serving as an added obstacle to upward price movement.

AUDUSD

The prevailing condition of the AUD/USD chart suggests a bearish momentum, signalling a descent towards an intermediate support threshold. This intermediate support level at 0.6399 finds support from an overlapping support that closely corresponds with the 61.80% Fibonacci projection level. At a deeper level, the second support at 0.6288 is similarly acknowledged as a pullback support, gaining further reinforcement through its alignment with the 78.60% Fibonacci projection level. On the upside, the initial resistance level at 0.6496 is characterized by an overlapping resistance. An added layer of resistance presents itself at the second resistance level of 0.6585, which is also identified as an overlapping resistance.

Thanks for reading!