The market takes breath after the long rally. What opportunities do traders have today?
Forex today: no significant movements
- On Monday, the US dollar index tested lows near $93.60. Tuesday’s trading isn’t extensive, but the index is at $94. ISM non-manufacturing PMI (17:00 MT time) should support the greenback. The forecast is positive, if the actual data is greater, the greenback will rise.
- The euro’s trading isn’t extensive. Traders are looking at European economic data. The data are mixed, as a result, EUR/USD doesn’t show an accurate direction. The pair is trading near 1.17. More economic data will be released during the day. The further movement will depend on them. The euro is anticipated to trade within 1.1650-1.1750.
- The pound is rising. GBP/USD rebounded from the pivot point at 1.33. Services PMI data was greater than the forecast. As a result, the pound is confidently going up. Resistances are at 1.3375 and 1.34. The support is still at 1.33.
- The Australian dollar lost some pips because of the negative economic data (current account -10.5B actual vs -9.9B forecast) and no news from the Reserve Bank of Australian. On Monday, the AUD/USD pair closed above the resistance at 0.7640. Up to now, it’s trying to stay above this level. However, the aussie needs more support. No more important data will be released today, moreover, if the greenback rises higher, the aussie has risks to fall below 0.7640. Tomorrow traders will look at Australian GDP growth. The forecast is encouraging. If the actual data is greater, AUD/USD will move to 0.7660.
- The US dollar continues to rise versus the Japanese yen as there are no significant political and economic tensions. On Monday, USD/JPY closed above the resistance at 109.70. Up to now, the trading is not extensive, however, the pair remains above this level. If the US dollar falls, there will be chances for the yen. So the pair will break below 109.70. Otherwise, the pair will remain above that level. But 200-day MA (110.20) will weigh on the pair.
- The US dollar is depreciating against the Canadian dollar. The pair broke the support at 1.2930 (50.0 Fibo level) and is moving down. Today traders will take into consideration Canadian labor productivity data. The forecast is encouraging. Moreover, Brent and WTI are rising. As a result, the Canadian dollar has chances for the further appreciation. The next support is at 1.2860.
- Bitcoin is falling again. The cryptocurrency rebounded from the resistance at $7,600. Up to now, the digital currency is trading below $7,300. The support lies at $7,000. Analysts predict a collapse of cryptocurrencies in the near future.
That is all for today. Follow markets news with us!
The United States will publish a weekly update on unemployment claims on July 9, at 15:30 MT time.
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.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.