Earnings Season is In Focus
Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?
Latest forex news on July 22
Fundamentals
- The market sentiment is risk-on today. The US dollar continues waning, while riskier assets and precious metals are rising. Nasdaq surged to the record high at 10 860.
- The risk appetite boosted by the optimistic news from biotech companies. AstraZeneca, Pfizer, and Synairgen revealed successful vaccine tests and effective coronavirus treatments.
- The USA is going to follow the EU example on supporting the economy. Recently the EU members agreed on a 750-billion-euros recovery fund. US Treasury Secretary Steven Mnuchin and Speaker of the House Nancy Pelosi were discussing the further fiscal stimulus package.
- Australian preliminary retail sales rose by 2.4% in June. It was lower than in May, when sales grew by 16.9%. However, the AUD is climbing up on the current risk-on mood.
Watch our daily forex trading plan!
Technical tips
EUR/USD
EUR/USD surged higher on the positive news on the EU recovery fund and vaccine promising results. It reached the level unseen since January 6, 2019 at 1.1530. However, it has showed some weakness recently. It may meet the support at the key psychological mark at 1.1500. If it falls below that level, it will reach the next support at the low of July 21 at 1.1440.
S&P 500
The S&P 500 surged higher and reached the 3 250 level. It may meet the resistance at 3 325. If it breaks it through, the stock index may increase to the all-time high at 3 390. Support levels are at the low of July 16 at 3 190 and at the 200-day moving average at 3 045.
Gold
Gold reached rates unseen since September 1, 2011 at $1 860. These days it tends to rise together with stocks. Support levels are at $ 1 840 and at $ 1 815.
GBP/USD
The risk-sensitive British pound surged but then closed in red. According to the Telegraph, there are no developments in Brexit talks. The breakthrough is only expected at the year-end, when the transition period expires. Let’s look at the daily GBP/USD chart. If the price breaks the high of June 10 and the 78.6% Fibonacci level at 1.2816, it will jump higher to the key psychological mark at 1.300. Otherwise, if it falls below the support at the 200-day moving average at 1.2700, it may plummet even deeper to the next support at 61.8% Fibo level at 1.2520.
Upcoming events:
- The Canadian CPI will be published at 15:30 MT time. Don't miss out!
- Follow the US crude oil inventories report at 17:30 MT time.
Similar
Can XAUUSD Move Higher?
The dollar's status as the world's reserve currency could only be recovered if the US controls its spending. The huge budget deficit and rising interest rates on the US national debt should scare every American, analysts say. Read the full report to learn more!
Latest news
The Yen Sets New Lows
The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!
Experts are Waiting for US Stocks to Rise
The US stock market fell in the third quarter. What's going on and why economists think that the last quarter will be better? Let's discuss it all here.
BlackRock CEO Supports The USD
BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!
