G10 currencies may bully the Japanese Yen this week as growing optimism over a swift economic recovery from the pandemic boost appetite for riskier assets at the expense of safe-havens.
Over the short-run, it may be a good idea to keep your powder dry. After all, the long-term trend is still bullish and isn’t even being threatened.
The EUR/USD is dropping as suggested on my live webinars and analyses. The last signal was a sell at 1.1325.
GBP/USD continues to trade below the nearest resistance at 1.2530.
The direction of the AUD/USD on Tuesday is likely to be determined by trader reaction to Monday’s close at .6973.
The Aussie Dollar has yet to take a hit, in spite of the latest COVID-19 spikes. Failure to contain the spread, however, will test the Aussie’s resilience.
Also, USD/CNY rose 0.1% to 7.0207, with the dollar rebounding after the yuan hit its highest level in nearly four months after the sharp gains seen in the Chinese share markets.
European stock markets are set to open lower Tuesday, consolidating after Monday’s sharp gains, as investors try to balance signs of a global economic recovery with concerns over the increasing number of new coronavirus cases in the U.S. At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.7% lower. CAC 40 futures in France were down 0.7%, while the FTSE 100 futures contract in the U.K.fell 0.7%.
Risk appetite continues to support the majors. With the markets not expecting any shift from the RBA, geopolitics and COVID-19 remain curveballs.
It’s been a mixed start to the day. A fall through the day’s pivot levels could see the majors give up on Monday’s gains…
AUD/USD Current Price: 0.6973 * The Reserve Bank of Australia is expected to keep the cash rate unchanged at 0.25%. * Soaring global equities underpinned the Aussie against its American rival. * AUD/USD neutral-to-bullish in the short-term and heading towards 0.7063.The AUD/USD pair traded as high as 0.6987, finding support in an improved market's mood that sent global equities higher. Also, Australian data published at the beginning of the day underpinned the Aussie, as the TD Securities Inflation report for May resulted at 0.6% MoM, better than the previous -1.2%. When compared to a year earlier, inflation picked up from 0.1% to 0.7% according to the same estimate.During the upcoming Asian session, the Reserve Bank of Australia will have a monetary policy meeting. The central bank is widely anticipated to keep its current monetary policy unchanged, as policymakers have been cautiously optimistic over the economy's performance within the pandemic context. The cash rate is at a record low of 0.25%.AUD/USD Short-Term Technical Outlook The AUD/USD pair is poised to challenge its 2020 high at 0.7063, offering a short-term neutral-to bullish stance. The 4-hour chart shows that a bullish 20 SMA keeps leading the way higher below the current level, and widening the distance with the larger ones. Technical indicators in the mentioned time-frame remain within positive levels, although lacking directional strength.Support levels: 0.6930 0.6895 0.6850 Resistance levels: 0.6990 0.7015 0.7060Image sourced from PixabaySee more from Benzinga * EUR/USD Forecast: Holding On To Higher Ground But Faltered Around A Strong Static Resistance Area * AUD/USD Forecast: Holding On To The Upper End Of The Weekly Range, Downside Limited * EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
EUR/USD Current Price: 1.1310 * EU Sentix Investor Confidence plunged to -18.2 in July, missing the market's expectations. * The US ISM Non-Manufacturing PMI jumped to 57.1 in June from 45.4 in the previous month. * EUR/USD is holding on to higher ground but faltered around a strong static resistance area.The EUR/USD pair has reached an intraday high of 1.1345, its highest since mid-June, easing towards the 1.1300 region during US trading hours. A rally in Asian equities was the main market driver throughout the first half of the day, amid optimism over an economic comeback among Chinese authorities. The EUR/USD pair advanced, despite discouraging EU data. German Retail Sales plunged by 29.3% YoY in May. The EU sales in the same period, however, declined by 5.1% YoY, better than anticipated. The Union also released the July Sentix Investor Confidence, which came in at -18.2 vs. the -10.9 expected.The dollar managed to recover some ground on a positive US ISM Non-Manufacturing PMI, which jumped to 57.1 in June from 45.4 in the previous month, largely surpassing the market's expectations. The Markit Services PMI for the same period was upwardly revised to 47.9 from a preliminary estimate of 46.7. Wall Street eased from intraday highs but closed with substantial gains.Meanwhile, the number of coronavirus cases remains in the eye of the storm. After reporting over 55,000 new cases in one day last week, new contagions have been decreasing in the US, although they remain above 40,000 per day. On Tuesday, Germany will publish May Industrial Production, see up by 10% in the month, while the US will only release minor figures, the IBD/TIPP Economic Optimism for July and JOLTS Job Openings for May.EUR/USD Short-Term Technical Outlook The EUR/USD pair has retreated from the upper end of its latest range, as it briefly surpassed the 1.1330 price zone. Nevertheless, it's holing above a Fibonacci level at 1.1270, which maintains the risk skewed to the upside. The pair retains its bullish potential in the short-term, and the 4-hour chart shows that the pair is comfortable above all of its moving averages, and with the 20 SMA crossing above the 100 SMA. Technical indicators, in the meantime, remain within positive levels. A break below 1.1270 should put the pair back into neutral ground and diminish the chances of a bullish extension.Support levels: 1.1270 1.1220 1.1170 Resistance levels: 1.1345 1.1390 1.1425Image sourced from PixabaySee more from Benzinga * AUD/USD Forecast: Holding On To The Upper End Of The Weekly Range, Downside Limited * EUR/USD Forecast: Neutral, Trading Within Familiar Levels For A Third Consecutive Week * AUD/USD Forecast: Struggling To Rally Beyond The 0.6900 Threshold(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Strong gains in Chinese equities spilled over into US stocks which paved the way for higher gold prices. Stronger than expected US ISM services numbers helped add to riskier assets, which have been highly correlated gold, helping to buoy the yellow metal.
USD/CAD continues to trade in the range between the support level at 1.3500 and the resistance level at the 20 EMA at 1.3595.
Gold markets went back and forth on Monday, reaching towards the $1800 level but it looks like we still have the same resistance in that region.
Silver is moving up quite shortly today, which sounds bullish, until one realizes that silver tends to be strong right before the precious metals market tops.
Silver managed to settle above $18.00 and is ready to test the nearest resistance below $18.50.
US dollar tried to rally against the Japanese yen on Monday, but has pulled back towards the ¥107.50 level, an area that it seems attracted to light a magnet.
The British pound rallied a bit during the trading session on Monday, reaching into the same area that we had attempted late last week.
British pound rallied a bit on Monday. This was helped by Chinese equities kicking off with the bank, bringing up the amount of risk appetite around the world.
The Euro surged much higher during the trading session on Monday, reaching above the 1.13 level yet again.
Aussie dollar traders started to buy hand over fist on Monday as the Chinese government stoke the fires of the bullish run in Chinese equities.
The Canadian dollar was little changed against its U.S. counterpart on Monday after a Bank of Canada business survey showed widespread negative sentiment, with currency investors looking for evidence of a faster rebound in economic growth. The loonie <CAD=> was trading nearly unchanged at 1.3540 to the greenback, or 73.86 U.S. cents. "The (FX) market is biding its time," said Amo Sahota, director at Klarity FX.
The subsidiary of cryptocurrency exchange Kraken has obtained a U.K. license allowing it to operate its derivatives platform in the EU.