EURUSD at 1.120 resistance, awaits NFP

3 August, 2016

The euro picked up steam yesterday after the dollar weakened following the unimpressive fiscal stimulus package from Shinzo Abe and the lackluster inflation data in the US. With the rally to 1.120 now complete, EURUSD is likely to sit back and await this Friday’s NFP data. Today’s main event with the ADP payrolls which is likely to set the tone heading into this Friday’s jobs report. Gold prices are also sitting near a key resistance level, and unless we see a strong bullish breakout above 1360, the bias remains to the downside.

EURUSD Daily Analysis

EURUSD (1.1212): EURUSD finally rallied to the 1.120 resistance level, which was mentioned over the past few weeks. Price action is likely to stay limited at the current levels, within 1.1240 - 1.120 resistance zone. On the daily chart, the Stochastics points to a hidden bearish divergence, with the higher low being formed against price's lower high. We can expect the downside to resume over the next few daily sessions. Initial support is seen at 1.110 - 1.1076 followed by the next main support identified at 1.10.

USDJPY Daily Analysis

USDJPY (101.07): USDJPY broke down below the 102 support level to test the lower support at 101. The Stochastics on the 4-hour chart continues to point to a hidden bullish divergence, but USDJPY will have to bounce off the current 101 and clear the overhead resistance at 102 to confirm any more further upside in prices. If 102 turns to resistance and keeps a lid on the gains, USDJPY could weaken to the 100 psychological price level. Either way, watch for a higher low in USDJPY on the 4-hour chart for an early confirmation of a move to the upside.

GBPUSD Daily Analysis

GBPUSD (1.332): GBPUSD posted strong gains yesterday with price breaking above 1.32 price level. The daily chart shows the potential inverse head and shoulders, with the right shoulder confirmed near the lows of 1.3121 - 1.320. Further gains are likely to continue towards the neckline resistance near 1.34 - 1.3488. Watch for a daily close above 1.34 in order to confirm further gains to the upside. Alternately, if GBPUSD falls back below 1.32, we can expect the declines to push lower towards 1.30.

Gold Daily Analysis

XAUUSD (1363.56): Gold prices posted strong gains yesterday retesting the 1350 resistance. Price closed above the 1360 level, but further upside can be confirmed only on a convincing close above 1360. On the 4-hour chart, we notice a strong hidden bearish divergence in gold prices which could signal a near-term weakness. Watch for a breakdown below 1355 - 1356 support level in order to confirm the correction to the downside. The next main support comes in at 1348 - 1350 level followed by 1300.


Source link  
U.S. dollar slips as investors scale back

The U.S. dollar index fell below the 100.00 handle yesterday as investors scaled back the Trump Trade...

USD continued to weaken yesterday

Price consolidated yesterday as directional catalysts have subsided in the wake of the ECB/ FOMC meetings. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50%...

Short covering rally continues

Short covering rally continues. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50% Fibonacci retracement from last year’s high. We also have the completion...


Dutch exit polls bodes well for EURUSD

The initial exit polls from various sources have clearly put the Dutch incumbent Prime Minster Mark Rutte's party in the lead against his radical opponent, Geert Wilders...

Fed and Dutch set the tone for a busy day

The FOMC's interest rate decision today will be closely watched as traders brace for a third rate hike in just under two years, since December 2015. The short term Fed funds rates are expected to rise to 0.75%...

U.S. dollar wavers, PPI data coming up

Trading was flat with the currencies seen giving back the gains made from Friday. The lack of any major events also contributed in part to the flat trading. Traders will be looking forward to the first part of a busy week starting tomorrow with the Fed's rate hike looming...


Draghi's speech stands out amid a quiet trading session

The single currency is seen extending the gains from Friday's rally even as the ECB president Mario Draghi is slated to speak later today...

EURUSD at resistance, as markets await payrolls report

The common currency got thumbs up from the European Central Bank's monetary policy meeting yesterday..

Gold slips on strong ADP report. ECB meeting next

The common currency is bracing up for another ECB day as the central bank meets for the second time this year. No changes are expected from the ECB at today's meeting...

  


Share: