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Forex Daily Recap – AUD/USD Aroused, Shrugging over Downbeat Part-time Data

Nikhil Khandelwal

AUD/USD

The Aussie pair continued to keep the tempo high and revolted upwards, breaching the strong 0.7047 resistance. This positive sentiment in the AUD/USD pair came despite a decline in June overall Employment Change figure. Though the Full-time Job data reported 21.1K, the Part-time data slipped massively, reporting near -20.6K. Nevertheless, the Part-time Employment data remains of quite less significant as compared to the Full-time Job data. Hence, the traders appeared to ignore the slump in the Part-time data and uplifted the AUD/USD, allowing it to conquer new heights.

AUDUSD 240 Min 18 July 2019

Also, the Aussie pair took several intermediate halts at the 8-day old ascending slanting support while moving into the buyer’s territory. Along with the rise in the pair’s value, there was a simultaneous growth observed in the RSI indicator too. The RSI was pointing near 70 mark in the evening session, revealing keen buyer interest.

However, any movement on the downside would have activated the firm support conflux containing the major SMAs.

GBP/USD

After hitting the 1.2386 level yesterday, the GBP/USD was underway a retracement path to the upside. Quite marvelously, the Cable thrashed off major Fibonacci levels and reached well above the 78.6% Fib level. Such a strong move came amid higher-than-expected June Retail Sales data. Both the MoM Retail Sales and Retail Sales excluding Fuel had reported a positive number over the negative market expectations.

GBPUSD 240 Min 18 July 2019

The UK June YoY Retail Sales data recorded 3.6% over the street hopes of 2.7%. The pair was able to cross above the 50-day near term SMA. Anyhow, the significant 100-day and 200-day SMA kept hovering above the pair, restricting the pair’s upside. Notably, the RSI had reached near 64.19 level, displaying an over-bought condition.

USD/CHF

The Swiss Franc pair was slightly moving out of the 8-day old symmetrical triangle vicinity. During the early hours of the day, the USD/CHF had showcased some beautiful swing highs. The USD/CHF pair breached and crossed above the short term 100-day SMA. However, the overhead lying resistance conflux containing the 50-day and 200-day SMA confined the pair’s upside.

USDCHF 240 Min 18 July 2019

The overall Switzerland June Trade Balance reported 4,096 million over the consensus estimates of 3,210 million. Though the Export data came around 16,359 million, the Import data surpassed estimates, recording 20,454 million.

USD Index

At around 19:40 GMT, the US Dollar Index was -0.47% down as the Initial Jobless Claims computed since July 12 reported adverse statistics. This time, the Initial Jobless data came around 216K over the previous 208K. Hence, this Unemployment data suggested an 8K rise in the overall data. Meanwhile, the Continuing Jobless Claims calculated since July 5 reported lower data. Also, the Philadelphia July Fed Manufacturing Survey recorded 21.8 points over the previous 0.3 points.

US Dollar Index 240 Min 18 July 2019

Anyhow, the market appeared to shrug over such positive data reports and stayed focussed on the sparse Initial Jobless data. Notably, the 1-month old symmetrical triangle was set into play, keeping the Greenback’s volatility locked within it. Today, the bears seemed to cherish as they have broken down the significant SMAs that stood as a barrier on the downside. By the end of the day, the RSI technical indicator was pointing towards 32 mark, displaying an active bear control.

 

This article was originally posted on FX Empire

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