The market sentiment is mixed, but there are still interesting movements on the market.
How to trade on July 27?
Gold is eyeing $2 000, the EUR has reached 1.70 and other interesting market movements.
- Both Australian PMIs: Manufacturing and Services, came better than analysts expected and marked the industry expansion in the country.
- The mixed data from the UK came on Friday. The British retails sales beat estimates and turned out 13.9%, while the forecast was 8.3%. The PMIs were better than expected as well. However, the effect was slightly damaged by the GfK consumer confidence. It was -27, while -25 was anticipated.
- All the PMIs from France, Germany and Europe, as a whole, exceeded analysts’ expectations, except only one - French flash manufacturing PMI. Nevertheless, the overall picture remained positive. The EUR keeps rallying for the 7th day in a row.
- The US data came worse than economists foresaw. Both PMIs, Manufacturing and Services, turned out worse than anticipated. The Services PMI even went below 50.0, what marked the industry contraction. This was the result of the fresh coronavirus outbreak in the country. Unlike the euro, the US dollar continues falling down for the 7th day straight.
EUR/USD is approaching the 61.8% Fibonacci level at 1.1820. If the pair crosses this level, it may surge to the next key psychological mark at 1.200. On the flip side, if it falls below the 38.2% Fibo level at 1.1370, it may drop even deeper to the low of July 8 at 1.1285.
XAU/USD surged to the all-time high at $1 930. Nobody even doubts that gold will reach $2 000. Anyway, support levels are at $1 885 and $1 868.
The aussie has formed a morning star, which is a bullish signal. If it crosses the high of July 22 at 0.7185, it will reach the high of April 7, 2019 at 0.7185. Otherwise, if it drops below the support at 0.7100, it will slump to the key psychological mark at 0.700.
The stock index has bounced back from the support at 3 190. If it breaks through the resistance at 3 270, it may surge to 3 325. In the opposite, the move below 3 190 will push the price to the low of July 7 at 3 135.
- The US durable goods orders will be published at 15:30 MT time. Don’t miss out!
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.