Price Action Forex Forecast [2024.08.30]: Key Price Levels and Trends for Major Forex Pairs – Is GBPUSD Entering a Downtrend?

Hello, and welcome to xlearn’s daily price action forex forecast for day traders. If this is your first time here, I recommend reading our guide on how to use our market analysis article before diving into this one.

By following these articles, you can learn how to read prices and perform price action trading.

Before we get into the analysis, let’s quickly review the major economic events that could impact 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: The EUR CPI Flash Estimate y/y will be released, showing the change in the prices of goods and services bought by consumers. The previous rate was 2.6%, and the forecast is 2.2%. If the actual rate is higher than the forecast, it’s good for the currency. Eurostat bases this estimate on energy prices and early CPI data from 13 euro area countries. There are two versions of this report: Flash and Final, released about two weeks apart. The Flash report is released very early and usually has a big impact. Consumer prices are a major part of overall inflation, which is important for currency value since rising prices can lead the central bank to raise interest rates to control inflation.
• 8:30 ET: Canada will release its GDP m/m, which shows the change in the inflation-adjusted value of all goods and services produced by the economy. The previous figure was 0.2%, and the forecast is 0.1%. If the actual figure is higher than the forecast, it’s good for the currency. This report is the broadest measure of economic activity and the main indicator of the economy’s health.
• 8:30 ET: The US Core PCE Price Index m/m will be released, showing the change in the price of goods and services bought by consumers, excluding food and energy. The previous and forecasted rate is 0.2%. If the actual rate is higher than the forecast, it’s good for the currency. Unlike the Core CPI, this index only measures prices of goods and services directly used by individuals, and prices are weighted based on how much people spend on each item. This gives key insights into consumer spending. Although the CPI is released about 10 days earlier and gets more attention, the Core PCE is the Federal Reserve’s main measure of inflation. Inflation matters for currency because rising prices can lead the central bank to raise interest rates to control inflation.

Price Action Forex Forecast

EURUSD:

EURUSD is still in an uptrend overall. It’s pulling back from the 1.12000 resistance level. Right now, the price is at the 1.10600 support level, with a small resistance at 1.11000. If this correction is ending, we might see the price break above the resistance and continue toward the 1.11400 resistance level. If it breaks that level too, it could reach 1.12000 again. However, if the price drops below the 1.10600 support level, it could fall further to the 1.09600 support level.

USDCAD:

USDCAD is trending down, with the price currently consolidating between the 1.34400 support and the 1.35000 resistance. If the downtrend continues, we might see the price break below this support level and move toward 1.33800. On the other hand, if the price breaks above the 1.35000 level, we can expect it to continue toward 1.36000, which would signal a correction phase.

USDJPY:

USDJPY is also trending down, with the price currently pulling back up from the 143.500 support level and now at the 145.500 resistance range. If this correction is over, we can expect the price to drop back to 143.500 from the resistance. However, if the price breaks above the 145.500 resistance level, it could continue toward 146.500.

USDCHF:

USDCHF is also trending down, with the price currently pulling back from the 0.84000 support level and now at the 0.85000 resistance range. If the price breaks above this resistance, we can expect it to continue rising toward 0.85600. On the other hand, the price could also start dropping from this resistance back toward the 0.84000 level.

GBPUSD:

GBPUSD is trending up. Right now, the price is more like consolidating above the 1.31500 support level, with resistance around 1.32000. If the price breaks above this resistance, we can expect it to move toward 1.32500, and if that level is also broken, then it could reach 1.33000. On the other hand, if the price breaks below the 1.31500 support, it may drop toward the 1.30750 range.

AUDUSD:

AUDUSD is trending up, with the price near the 0.68200 resistance and support around 0.67600. We can expect the price to break above this resistance and continue toward 0.68600. However, pullbacks around 0.68200 are also possible. On the other hand, the price might drop to the 0.67600 range, where it could either pull back or break below and continue dropping.

NZDUSD:

NZDUSD is trending up, with the price currently consolidating around the 0.62500 support level. There is resistance around 0.63000. If the price breaks above the 0.63000 resistance, we can expect it to continue toward 0.63600. On the other hand, if the price breaks below the 0.62500 support range, it may drop toward 0.62200, and if that level is also broken, then down to 0.62000.

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.

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