/analysis/jul-062020/
Market Focus
Investors continue to weigh signs that global economies are on the mend against relentless new outbreaks of the virus. US payrolls data Thursday fueled optimism of a V-shaped recovery in the world’s biggest economy.
Australia’s Retail Sales for May printed 16.9%, slightly above estimate of 16.3%, a big leap from previous -17.7%. While China’s June month Caixin Services PMI grew past-49.9 expected and 55 prior to 58.4.
Market Wrap
Main Pairs Movement
Due to US Independence Day, liquidity was drained out in forex market, all major pairs were traded in tight range.
COVID-19 Data (EOD):
Technical Analysis:
GBPUSD (H4)
Cable has broken its downward trend line from mid-June and bounced to challenge 38.2% Fibonacci at 1.253, but failed to advance beyond this level. The bullish reversal may move ahead of itself, if price can retrace towards1.24 without breaching lower, then the current bullish run could be sustainable.
Resistance: 1.253, 1.267, 1.2788
Support: 1.24, 1.2268, 1.218
AUDUSD (H4)
Aussie is kept within a tight range, depressed liquidity from US Independence Day has added noise to price momentum. The near-term trend favors the bull as price sits comfortably in Bollinger’s upper region, but whether it could overcome resistance band of 0.6967 – 0.702 within the next few trading days remains questionable.
Resistance: 0.6967, 0.702, 0.712
Support: 0.6897, 0.6803, 0.6669
XAUUSD (H4)
Gold’s bullish bias is still intact and RSI shows price is far from overbought, which provides plenty space for the precious metal to climb. Bulls are looking over $1786 hurdle, and $1800 target remains a distinct possibility. On the flip side, failure to defend $1760 could result in a bearish reversal, which would possibly prompt some aggressive selling.
Resistance: 1786, 1819, 1836
Support: 1761, 1742, 1722
Economic Data
Currency |
Data | Time (TP) | Forecast |
Exposure (Our side) |
EUR |
ECB President Lagarde Speaks | 18:40 |
|
Risk Warning:
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.
The information provided is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs.
Education
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & Investments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.