Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
How to trade on July 27?
Gold is eyeing $2 000, the EUR has reached 1.70 and other interesting market movements.
Fundamentals
- 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.
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Technical tips
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.
Gold
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.
AUD/USD
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.
S&P 500
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.
Follow news:
- The US durable goods orders will be published at 15:30 MT time. Don’t miss out!
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Crucial News For The Following Week
Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!
Focus on Banks' Meeting and NFP
The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.
