Dollar Supported, Heading Into FOMC

25 July, 2016

Daily Forex Market Preview, 25/07/2016

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued. But with price consolidating within the falling wedge pattern watch for a possible breakout to the upside with EURUSD gains likely to extend to 1.110. GBPUSD is looking bearish with a 4-hour minor head and shoulders pattern that could trigger a short-term dip to 1.30.

EURUSD Daily Analysis

EURUSD (1.097): With EURUSD closing below 1.10 on Friday, price action is now looking bearish with the potential to slide towards 1.09. On the 4-hour chart, EURUSD is seen trading within the falling wedge pattern, and a close above 1.10 could see a near-term retracement to 1.105 - 1.104 minor resistance. Watch for a possible break out from the median line in which case; price could be eyeing a deeper retracement potentially to 1.110. To the downside, if resistance is established at 1.10, we could expect to see EURUSD fall towards the next main support at 1.09.

USDJPY Daily Analysis

USDJPY (105.80): USDJPY has formed an inside bar on Friday. Price action is likely to be limited to the FOMC meeting first, trading within 107 - 106 price levels in the near term. A bearish close below 106 is required for USDJPY to post a correction. Support at 103 - 102 will be key in this aspect. To the upside, a close above 107 could see renewed bullish bets emerge, in which case, 110 remains the initial price level in sight.

GBPUSD Daily Analysis

GBPUSD (1.312): GBPUSD closed bearish on Friday and below 1.320. Still, price action could move in either direction. A close back above 1.32 could keep the bullish bias intact while to the downside, 1.30 remains the next main support level of interest. On the 4-hour chart, price action fell to the minor head and shoulders support level at 1.311 - 1.308. A breakdown below this minor support could see GBPUSD slide towards 1.30 - 1.285 support. The bearish bias is likely to fail if GBPUSD can close above 1.32 on a daily session.

Gold Daily Analysis

XAUUSD (1317.34): Gold prices continue to post gradual declines with the current bearish price action retracing the gains from last Thursday. Still, the bullish flat pattern on the daily chart remains key with 1350 resistance likely to be tested and could limit the rally. On the 4-hour chart, gold prices are currently posting a higher low and a bullish close above 1327.50 could validate the correction towards 1350. Also, watch for a potential bullish divergence being formed currently.


Source link  
US dollar hit by Trump's comments

The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...

Gold gives up gains

The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...

Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...


Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...

EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...


GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...

GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

EURUSD eyes 1.07 on a breakout below 1.10

Risk aversion resumed after the US returned from holiday with investor sentiment turning sour after a third real estate fund suspended trading after an increase in investor redemptions. Sterling slumped as expected, fueled by BoE lowering capital buffer requirements...

  


Share: