Will the RBA Add Strength to the Aussie?
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
US dollar rallies up after Fed
Information is not investment advice
Latest news
- The US dollar has surged to levels unseen since April after the Fed's decision back on Wednesday. The central bank hinted about two rate hikes in 2023 and also started a discussion on cutting bond buys.
- Gold has reversed up from the local dips. Still, this week was the worst for gold in more than a year. Crude oil is recovering as well.
- AUD/USD is sharply falling despite strong Australian labor figures released on Thursday. It has just hit the lowest level unseen since December.
- GBP/USD has broken below 1.39 amid the strong USD and a jump in virus cases to levels unseen since mid-February. Besides, UK Retail Sales dropped by 1.4% in May and added to the headwinds.
- Bitcoin is on the back foot once again. It has just dropped below $38,000.
Technical outlook
EUR/USD has dropped out of the lower trend line to the support level of 1.1900. The RSI indicator has touched the 30.0 level indicating the pair is oversold. Thus, the pair should reverse up from the current levels. The move above the 1.1950 resistance level will lead the pair to the 200-day moving average of 1.2000. If the current bearish momentum remains, EUR/USD may fall to the low of March 8 at 1.1840.
Gold has bounced off the 61.8% Fibonacci retracement level of $1770. The yellow metal is edging higher to the 50% Fibo level of $1800. It’s unlikely to cross this level on the first try as it has failed to do so in late April – early May. Support levels are $1170 and $1735.
XBR/USD (Brent crude oil) is moving inside the ascending channel. The breakout above mid-June of $74.00 will push oil to the next round number of $75.00. Support levels are $72.00 and $ 71.00.
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Will the RBA Add Strength to the Aussie?
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
Trade ideas for August 2-6
What events to follow and how to trade during the week of July 2-6?
EUR/USD is Ready for Reverse, Amazon's Poor Results
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
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