Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Market updates on July 3
Information is not investment advice
Key events ahead:
US ADP Non-Farm Employment Change – 15:15 MT
Forecast of +140K people
Canadian trade balance - 15:30 MT
Forecast of -1.7 billion CAD
ISM Non-Manufacturing PMI – 17:00 MT
Forecast of 56.1 points
- Yesterday, the European leaders agreed to nominate the current Chairwoman of the International monetary fund, Christine Lagarde as the next president of the European central bank. According to analysts, she is expected to follow the current dovish tone of Mario Draghi. The EUR/USD pair has tested the support at 1.1269 on H4. If bears continue to pull the pair down, the next support will lie at 1.1252 (200-period SMA). From the upside, pay attention to the resistance levels at 1.3060 (100-period SMA). If this level is broken, the next resistance will lie at 1.1319. After the breakout, the next key level will be placed at 1.1348 (50-period SMA).
- Gold jumped yesterday amid the fears about global economic growth and geopolitical issues. The price for the yellow metal tested the resistance at $1,435 on H4. At the moment, it is trading near the support at $1,422. As far as this level is broken, the next support will lie at $1,406 (50-period SMA).
- USD/JPY also fell yesterday. At the moment, the pair is testing the resistance at 107.74 on H4. The next resistance levels are 108.12 and 108.49. From the downside, the support levels for the pair lie at 107.56, 107.26 and 107.04. The stochastic oscillator is about to form a crossover within the oversold zone. It may provide us a buying opportunity.
- The Canadian dollar is awaiting the release of Canadian trade balance at 15:30 MT time. At the moment, the key resistance for the USD/CAD pair lies at 1.3116 on H4. The next one is placed at 1.3132. If the Canadian dollar is supported today, the pair will break the support at 1.3094. The next key level is placed at 1.3066.
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.