**Weekly Forex Analysis: EUR/USD, GBP/USD, and USD/CAD**
Original Analysis by Fawad Razaqzada, adapted and expanded with further insights.
**Introduction**
The forex market presented significant activity last week, marked by key technical moves and fundamental shifts driven by central bank comments and economic data. This weekly analysis provides a comprehensive outlook for EUR/USD, GBP/USD, and USD/CAD, reviewing their recent trends and anticipating what traders should watch in the coming week. Both technical and fundamental perspectives are considered to provide a robust view of price action and potential pivot points.
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### **EUR/USD Review and Outlook**
**Recent Developments:**
– The EUR/USD pair saw a notable rebound late last week, reversing earlier losses following a dovish Federal Reserve policy update.
– The US dollar initially strengthened amid expectations of persistent inflation but weakened after the Federal Reserve signaled that rate hikes were likely done and reasserted their data-dependence.
– The euro found additional support from solid Eurozone inflation numbers, which were slightly hotter than forecast, slowing expectations for imminent ECB policy easing.
**Technical Analysis:**
– Key support was observed around the 1.0780 to 1.0800 area, with the pair rejecting further downside.
– The 200-day moving average near 1.0800 provided a strong dynamic support level, coinciding with recent lows.
– Resistance is found near 1.0880 and then at the psychological 1.1000 mark.
**Chart Patterns and Indicators:**
– Bullish engulfing candle on the daily timeframe indicated a momentum shift to the upside.
– Relative Strength Index (RSI) moved back into neutral, highlighting reduced bearish momentum.
– The moving average convergence divergence (MACD) crossed higher on the 4-hour chart.
**Fundamental Drivers:**
– Eurozone data showed resilience, particularly in German industrial orders and inflation, putting a potential floor under the euro.
– Federal Reserve comments were interpreted by the market as dovish, disappointing US dollar bulls.
– Upcoming economic releases, such as Eurozone GDP, services data, and US Non-Farm Payrolls (NFP), will be crucial.
**Key drivers to watch for EUR/USD in the week ahead:**
– US NFP and ISM Services PMI for directional play on the US dollar.
– Eurozone GDP growth and ECB speakers for hints on policy direction.
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### **GBP/USD Review and Outlook**
**Recent Developments:**
– GBP/USD rallied sharply, climbing from below 1.2500 to approach the 1.2650 resistance.
– A combination of softer US data and more hawkish Bank of England (BoE) speak underpinned the British pound.
– The BoE left rates unchanged in the prior meeting, but minutes indicated a cautious stance and highlighted persistent inflation risks.
**Technical Analysis:**
– The pair broke above the key short-term resistance at 1.2580, clearing path toward 1
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