Price Action Forex Forecast [2024.08.12]: Key Support and Resistance Levels and Trends for Major Forex Pairs

Hi, welcome to xlearn’s daily Price Action Forex Forecast for day traders. This analysis focuses on price action trading for major forex pairs.

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.

• 21:30 ET: Australia will release its quarterly Wage Price Index, which measures changes in the wages businesses and the government pay, excluding bonuses. The previous rate was 0.8%, and the forecast is 0.9%. If the actual figure is higher than the forecast, it’s positive for the currency. This report is a key indicator of consumer inflation, as higher labor costs often lead to higher prices for consumers.

Price Action Forex Market Analysis

EURUSD:

EURUSD is currently pulling back from the major resistance level of 1.10000. It has dropped below the 1.09600 support and is now consolidating above the 1.09000 support. If this pullback is just a correction, we could see the price rise again, break above 1.09600, and potentially move up to 1.10000, where it might pull back or break higher. However, if this is the start of a new downtrend, the price could break below the current support and head towards 1.08600. If 1.08600 is also broken, the price may continue down to 1.07800.

USDCAD:

USDCAD is reversing from the major resistance at 1.39500. It has broken below the 1.38500 support and is now consolidating at the 1.37200 support. If the downtrend continues, we can expect the price to break below this support and drop to the 1.36000 range. However, if this is just a correction, the price might reverse from this support and head back up to 1.38500.

USDJPY:

USDJPY was trending down, but after reaching the major support level around 142, it pulled back and is now consolidating between the resistance at 148 and the support at 146. If the price has started an uptrend, we can expect it to break above this resistance and continue toward 152. However, if this is just a correction, we might see the price break below the support and continue dropping toward 142.

USDCHF:

USDCHF was also trending down, but now it seems to be reversing from the major support level at 0.84000. You can clearly see an uptrend forming on the 1-hour chart. We can expect the price to keep climbing along this trend line, with a possible pullback around 0.87500. If the price breaks above that level, it should continue going up. However, watch for the price breaking below the trend line—if that happens, the trend could change.

GBPUSD:

GBPUSD was trending down, but it looks like the price is pulling back from the support at 1.26750 and is now near the resistance level of 1.28000. If an uptrend is starting, we can expect the price to break above this resistance and continue toward 1.29000. However, if this is just a correction, we might see the price reverse from the 1.28000 resistance and drop back toward the support at 1.26750.

AUDUSD:

AUDUSD seems to have started an uptrend. After dropping to the support around 0.63500, it quickly bounced back up. Now, the price is moving up slowly and is currently near the resistance level of 0.66000. We can expect the price to break above this level and continue rising toward 0.67000. Keep an eye out for possible pullbacks.

NZDUSD:

NZDUSD, similar to AUDUSD, was trending down but is now reversing and starting an uptrend from 0.58500. Currently, it’s consolidating between the support at 0.59800 and the resistance at 0.60500. We can expect the price to break above this resistance and continue up toward 0.61500. However, be cautious of a break below the support; if that happens, the price could drop back down toward 0.58500.

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✌!!!