Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Market updates on July 24
Information is not investment advice
- EUR/USD weakened on the lower-than-expected PMIs. The data disappointed with French flash services PMI falling to 52.2 points (vs. expected 52.7 points) and German flash manufacturing PMI reaching 43.1 points (vs the forecast of 45.1 points). On H4, the pair has tested the support located at the 1.1118-1.1127 levels. If bears pull the pair lower, the next support will lie at the lows of 2017 at 1.1076. From the upside, pay attention to the resistance levels at 1.1159, 1.1166 and 1.1177. It is worth to mention that on the daily chart the pair completed the “Head and Shoulders” pattern.
- GBP/USD could not hold the gains after Boris Johnson was announced the next Prime Minister of Great Britain and fell to the support at 1.2427. After the slow start of the trading day, the cable has attempted to recover to the resistance at 1.2455. The next resistance levels lie at 1.2475 and 1.2495. In case of a reversal, the pair will retest the 1.2427 level. After the breakout, pay attention to the support at 1.2399.
- According to Westpac, there is a chance for the Reserve bank of Australia to cut its interest rate again in November (earlier, than it was forecast before). The Australian dollar plunges on the news. On H4, the aussie has fallen below the 100-period SMA since the beginning of the day. The first support for AUD/USD will lie at 0.6967. The next one at 0.6957. If the pair goes up, there is a chance that it will test the resistance at 0.6989.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.