Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Market updates on July 9
Information is not investment advice
- The US dollar has continued to gain strength on the improved outlook and the cooling in the US-China trade tensions. On H4, EUR/USD slid towards the support at 1.1202. If this level is broken, the next support will lie at 1.1185. Bulls need to push the pair above the 1.1217 level. If they succeed, buying action will be limited by the 1.1232 level.
- GBP/USD has tested the lows below the 1.2480 level on H4. The next support is placed at the level of the January’s flash crash at 1.2418. If the British pound is supported, the cable will try to break the descending trading channel and rise towards the resistance at 1.2541. The next key level will lie at 1.2604.
- The Australian dollar weakened on the poor Business confidence data. The indicator dropped to 2 (vs. 7 previously). Combined with a stronger USD, this release pulled the aussie down. On H4, the AUD/USD pair has fallen below the 100- and 200- period SMA. The downward movement will complete the double top pattern. The next major support for the pair will be at 0.6920. After that pay attention to the 61.8% Fibo level at 0.6913. From the upside, levels at 0.6968 (38.2% Fibo) and 0.6989 will be important for bulls.
- The New Zealand dollar has fallen below the support at the 50% Fibo level at 0.6608 on H4. The next support will lie at 0.6581, which is close to the 61.6% Fibo. Alternatively, the strong bullish surge may push the kiwi above the 100-period SMA at 0.6629. After that, reaching the 0.6641 and 0.6652 resistance levels seem possible.
- Gold continues falling down due to the firmer USD. At the moment, it is targeting the support at $1,384. After the breakout, sellers will pay attention to the next support at $1,364. From the upside, the traders of the yellow metal will keep an eye on the $1,397 and $1,416 resistance levels.
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.