Forex Price Action Forecast [2024.07.31]: Key Levels and Trends for EURUSD, USDJPY, GBPUSD, AUDUSD, NZDUSD, USDCAD, USDCHF & FOMC Insights

Hi, welcome to xlearn’s daily forex market analysis for day traders. This analysis focuses on price action trading.

Before we jump into the actual analysis, let’s take a look at the major economic events that could affect the market.

Key Economic Events Today

These events encompass important global news, macroeconomic reports, and economic indicators. For more details, you can check the forex factory.

• 5:00 ET: EURO CPI Flash Estimate y/y is being released. This shows changes in the prices of goods and services bought by consumers. Eurostat bases this estimate on energy prices and data from 13 euro area member states that report early CPI data. There are two versions of this report, released about two weeks apart: Flash and Final. The Flash report is very early and usually has a big impact. Consumer prices make up most of overall inflation. Inflation matters for currency value because rising prices can make the central bank raise interest rates to control inflation.
• 8:30 ET: Canada is releasing its GDP m/m, with the previous value at 0.3% and the forecast at 0.1%. This report shows the change in the inflation-adjusted value of all goods and services produced by the economy. It’s the broadest measure of economic activity and the main indicator of the economy’s health.
• 8:30 ET: The US is releasing its Employment Cost Index q/q, with the previous value at 1.2% and the forecast at 1.0%. If the ‘Actual’ value is higher than the ‘Forecast,’ it’s good for the currency. This report shows the change in the cost businesses and the government pay for civilian labor. It’s a leading indicator of consumer inflation because when businesses pay more for labor, they usually pass the higher costs on to consumers.
• 14:00 ET: The FOMC Statement is being released. This is the main way the FOMC communicates with investors about monetary policy. It includes the results of their vote on interest rates and other policy measures, plus comments on the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and gives hints about future votes. If the statement is more hawkish than expected, it is good for the currency.
• 14:30 ET: FOMC Press Conference. This conference lasts about an hour and has two parts – first, a prepared statement is read, then the conference opens to press questions. These questions often lead to unscripted answers that can cause big market swings. The press conference is webcast live on the Fed’s YouTube channel. It’s one of the main ways the Fed communicates with investors about monetary policy. It covers the factors behind the latest interest rate and policy decisions, with comments on economic conditions like future growth and inflation. Most importantly, it provides clues about future monetary policy.

Forex Price Action Analysis

EURUSD:

EURUSD is trending down. There is support around 1.08000. If the price breaks below this support, which is likely since it’s in a downtrend, we can expect it to drop to the 1.06800 level. Watch for the price breaking above the resistance around 1.08800; if that happens, the trend might be changing.

USDCAD:

USDCAD is in an uptrend and is currently sitting around the major resistance area at 1.38500. The price is more likely to reverse from this level and start dropping. Keep in mind that there is a small resistance level around 1.38700. If the price breaks above this resistance, the uptrend is still in place, and we can expect the price to continue going up.

USDJPY:

USDJPY is trending down and has broken below the 152 support. Now, it’s heading toward the 147 range. We can expect the price to continue moving to that level and then either pull back or break below it.

USDCHF:

USDCHF is trending down. The price pulled back to a resistance around 0.88800 and has started to drop again. It’s nearing the support at 0.87800. Since it’s in a downtrend, we can expect the price to break below this support and continue dropping to the 0.87400 level, but a pullback is also possible.

GBPUSD:

Looking at GBPUSD, it’s trending down and currently at the 1.28000 support. If the price breaks below this support, we can expect it to drop to the 1.26000 level. However, the price could also reverse from this support. Watch for the price breaking above the 1.29000 resistance; if that happens, the price may enter an uptrend.

AUDUSD:

AUDUSD is trending down and is currently around the 0.64800 support level. The price might pull back and start to go up from here, or it could break below this level and continue to drop to the 0.63000 level. Watch for the price breaking above the resistance around 0.65700.

NZDUSD:

NZDUSD is trending down but seems to be reversing around the major support level of 0.58800. There is resistance around 0.59500. If the price breaks above this resistance, we can confirm that a reversal or uptrend is happening. However, be prepared for the unexpected. If the price breaks below this major support, it will continue to drop.

Conclusion & Disclaimer

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These analyses are here to help you understand how to analyze the market. They’re not about giving buy or sell signals. It’s simply about observing price action market behavior. I don’t recommend when to buy or sell because trading doesn’t work that way. You need a strategy to guide your decisions about when to enter or exit positions. That’s the key to making consistent profits in the financial markets over time.

The information provided in this market analysis is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any securities or investments.

All investments involve risk, and past performance is not indicative of future results. The analysis provided may not be suitable for all investors and should be used at their own discretion.

Readers are encouraged to conduct their own research.

Trading and investing in financial markets carry inherent risks, including the risk of losing invested capital. It is important to carefully consider your investment objectives, risk tolerance, and financial situation before making any investment decisions.

GOOD LUCK✌!!!