USD/CHF and EUR/CHF rose to tactical highs. What's next?
Market updates on July 3
Key events ahead:
US ADP Non-Farm Employment Change – 15:15 MT
Forecast of +140K people
Canadian trade balance - 15:30 MT
Forecast of -1.7 billion CAD
ISM Non-Manufacturing PMI – 17:00 MT
Forecast of 56.1 points
- Yesterday, the European leaders agreed to nominate the current Chairwoman of the International monetary fund, Christine Lagarde as the next president of the European central bank. According to analysts, she is expected to follow the current dovish tone of Mario Draghi. The EUR/USD pair has tested the support at 1.1269 on H4. If bears continue to pull the pair down, the next support will lie at 1.1252 (200-period SMA). From the upside, pay attention to the resistance levels at 1.3060 (100-period SMA). If this level is broken, the next resistance will lie at 1.1319. After the breakout, the next key level will be placed at 1.1348 (50-period SMA).
- Gold jumped yesterday amid the fears about global economic growth and geopolitical issues. The price for the yellow metal tested the resistance at $1,435 on H4. At the moment, it is trading near the support at $1,422. As far as this level is broken, the next support will lie at $1,406 (50-period SMA).
- USD/JPY also fell yesterday. At the moment, the pair is testing the resistance at 107.74 on H4. The next resistance levels are 108.12 and 108.49. From the downside, the support levels for the pair lie at 107.56, 107.26 and 107.04. The stochastic oscillator is about to form a crossover within the oversold zone. It may provide us a buying opportunity.
- The Canadian dollar is awaiting the release of Canadian trade balance at 15:30 MT time. At the moment, the key resistance for the USD/CAD pair lies at 1.3116 on H4. The next one is placed at 1.3132. If the Canadian dollar is supported today, the pair will break the support at 1.3094. The next key level is placed at 1.3066.
Eurozone, France, and Germany will publish the flash services and manufacturing PMIs on February 19, from 10:15 to 11:00 MT time
During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.