On the daily chart of EUR/JPY, bulls and bears are fighting for the upper boundary of the downward channel.
Trading plan for August 7
It’s a forecast for August 7.
- The US dollar index has been climbing to the psychological level at $95.50. The index had been trying to break above it since the end of June. The index needs a strong boost to hit above $95.50 finally. No important data will be released on Tuesday. However, if there are clues on the further escalation of trade wars, the index will climb higher. The next resistance is at $96. Otherwise, the trading within $95-95.50 is anticipated.
- The Australian dollar is anticipated to be volatile on Tuesday, as the central bank will release the interest rate (7:30 MT time). Although any changes in the interest rate are not anticipated, clues on the future monetary policy will define the direction of the AUD. Up to now, AUD/USD has been trading below the pivot point (0.7395). If the central bank is hawkish, the pair will be able to move above the pivot point that will become a positive signal for the pair. The resistance will lie at 0.7415. Otherwise, it will move further down to the support at 0.7350. Moreover, MAs are moving down, that is a negative signal for the pair.
- The USD is stronger, other currencies suffer a lot. GBP/USD has reached the support at 1.3925. On the weekend, the UK International Trade Secretary said that the Brexit negotiations are likely to end in failure. Any deadlocks in the negotiations cause a fall of the GBP. If the US dollar index is strong on Tuesday, the pair will move to the next support at 1.2850. Otherwise, it has chances to recover. The resistance is at 1.3050.
On the daily chart of EUR/USD, chances that the pair will reach targets of the “Head and Shoulders” pattern and the “Shark” pattern (88.6% target) are declining.
On the daily chart of EUR/GBP, the long-term consolidation within 0.87-0.902 is continuing.
The last "Pennant" pattern has been broken, so bulls found resistance at 1.2915. Nevertheless, the market is likely going to move on, so we should...
USD/CHF remains weak across the board and stays strong with a bearish consolidation below the 200 SMA at H1 chart…
There's no any reversal pattern so far, so the market is likely going to test the nearest resistance area in the short term...