Daily Market Pick - 3rd August, 2023

Welcome to our Daily Market Pick for this third day of August. Let's see what the markets have in store for us.

EURUSD

The EUR/USD chart shows a bearish trend, indicating a potential further decline towards the first support level at 1.0918. This level is significant as it aligns with the 78.60% Fibonacci retracement and the 61.80% Fibonacci projection, creating a Fibonacci confluence. A deeper drop may find support at the second level, 1.0839, which coincides with the 100% Fibonacci projection, acting as a strong barrier against more decline. On the other hand, if the trend reverses, the first resistance at 1.0959 could challenge bullish movements. Breaking this level might face difficulty at the second resistance, 1.1038, posing a significant obstacle to further price increases.

GBPUSD:?

The GBP/USD chart shows a bearish momentum as the price breaks below an ascending support line, signalling potential further decline towards the first support level at 1.2676. This level is significant as it aligns with the 100% Fibonacci projection. A deeper drop could encounter the second support level at 1.2607, also an overlap support, acting as a barrier against more losses. However, if there's a price reversal, the first resistance at 1.2756, an overlap resistance, and aligned with the 38.20% Fibonacci retracement, may pose a significant hurdle. Breaking this level might face additional challenges at the second resistance, 1.2876, another overlap resistance, potentially limiting further price increases.

AUDUSD

The AUD/USD is currently in a bearish trend, likely continuing downward to the first support at 0.6465. This level is significant as it acts as a swing low support and aligns with the 145.00% Fibonacci extension. If the price drops further, the second support at 0.6403, an overlap support, is expected to halt the decline, also aligning with the 161.80% Fibonacci extension. On the flip side, a price reversal may face resistance at the first level of 0.6547, an overlap resistance. Breaking this resistance might find further challenges at the second resistance of 0.6595, another overlap resistance, potentially hindering upward progression.

NZDUSD

The NZD/USD is currently in a bullish trend, potentially bouncing off the first support at 0.6065 and aiming for the first resistance. This support level acts as a swing low support and aligns with the -27.20% Fibonacci expansion. A decline beyond the first support may find support at the second level, 0.5993, also functioning as a swing low support, preventing further decline. However, if the price rises, the first resistance at 0.6132, an overlap resistance, might hinder bullish progression. Surpassing this resistance might face an additional obstacle at the second resistance, 0.6221, corresponding to a swing high resistance.

Thanks for reading!