Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Market updates on July 19
Key events ahead:
Core retail sales – 15:30 MT (12:30 GMT) time
- Yesterday, the speech by New York Fed President John Williams sent the US dollar lower. According to his words, the measures are needed to prevent disaster in the US economy. After that, his comments were confirmed by the FOMC member Richard Clarida. However, the comments by the NY Fed President Williams were clarified by the New York Fed, where the institution noted about the academic character of the Williams’ comments.
On H4, EUR/USD rose by 58 pips during the American trading session and tested the 200-period SMA at 1.1280. After the reassuring comments by the NY Fed, bears tried to pull the pair lower to the 50-period SMA. At the moment, EUR/USD is testing the support at 1.1253. The next support for bears will lie at 1.1237. From the upside, the first resistance lies at 1.1263. After the breakout, wait for the pair to reach the strong resistance zone at 1.1274-1.1280.
- The USD/CAD pair is awaiting the release of core retail sales at 15:30 MT time. If the actual figures outperform the forecasts, the pair will slide below the 1.3019 level. The next support will lie at 1.3003, which is the lower border of the downward trading channel. Otherwise, the first resistance level will be placed at 1.3060 (50-period SMA). The next resistance will lie at 1.3077 (100-period SMA).
- Gold reacted to the dovish speeches by the Fed members and the news that US ship took defensive action against Iranian drone. The yellow metal rose to its highest level since 2013 and tested the levels above the resistance at $1,448 on H4. Now, the price for gold is correcting to the downside. If it continues to weaken, the first support will lie at $1,423. If this level is broken, the next support will lie at $1,412. If bulls take over the market once again, XAU/USD will retest the $1,448 level.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Last week was super intense! Geopolitical turbulence made the Russian ruble the most volatile currency. Gold rose and fell by more than 8000 points each time.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.