Market Update (22/7/2020): EUR/USD, GBP/USD, USD/JPY, AUD/USD
EUR/USD is on a huge bullish trend, reaching the peak of 1.1541 this morning, a level never seen since Jan 2019. Today it opened with 1.1493 and rose to the 1.1541 peak before falling back to 1.15386. Today’s Support is at 1.1453 and Resistance at 1.1570
This bullish trend happened due to European Union Leaders finally agree on the $2 Trillion ($2,000,000,000,000) stimulus package to rebuild the Eurozone countries’ economy. With the Coronavirus under control and optimistic data, these should drive Euro higher; while weak US economic outlook will assist in driving the investors away from USD.
German — 30-y Bond Auction
US — Crude Oil Inventories, Existing Home Sales
GBP/USD opened with 1.2735, tested the 1.2767 level but dropped back to 1.2728. Today’s Support is at 1.2520 and Resistance at 1.2585
GBP experienced its fair share of short-term bullish due to USD losing to many major currencies, and it the bull has receded for now. Reuters poll data shows that the economy will recover but the market sentiment is not really reflecting any upward movements.
UK House Price Index (YoY)
The pair opened with 106.82, recovered to 106.89 then dropped slightly back to 106.79. Today’s Support is at 106.60 and Resistance at 106.95.
The pair plunged yesterday as the result of weak USD currency, dollar is under heavy pressure against Euro, increasing US federal
budget deficit and debt crisis. On the other hand, JPY is still another safe-haven asset choice for investors leaving US.
AUD/USD has been on the rise this week, opened with 0.7111 and reached 0.7137. Today’s Support is at 0.7043and Resistance at 0.7181.
Despite earlier weak retail sales data, AUD continues on a bullish streak riding on USD’s weakening. However, the risk sensitive currency still has underlying concerns where escalating Coronavirus cases in Victoria and US is challenging the risk-on sentiment.
Data from trading view, fxstreet , dailyfx
Date &time according to tradingview UTC+8
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