The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Market updates on June 19
Key events ahead:
British CPI – 11:30 MT time
Canadian CPI – 15:30 MT time
Speech by the ECB president Mario Draghi – 17:00 MT time
FOMC statement – 21:00 MT time
- After the plunge of the euro on the dovish comments by the ECB President, EUR/USD has been consolidating near the support at 1.1187 on the H4. If bears manage to break this level, the next support levels will lie at 1.1173 and 1.1165. Bulls need to push the pair higher to the resistance at 1.1209 to confirm their strength. The next resistance will lie at 1.1221. Traders will focus their attention to the fresh comments by the ECB president later today and to the FOMC meeting at 21:00 MT.
- US President Donald Trump had a telephone conversation with Chinese President Xi yesterday. The leaders agreed to meet during the G20 Summit in Japan. The news increased the risk appetite in the market. The risk-on sentiment pushed the oil prices and the Canadian dollar up.
- The price for WTI retested the $54.28 level on the news. On the daily chart, from the upside, the next resistance levels are placed at $55.71 and $57.60. Bears need to push the pair back to the support at $50.78 to confirm their strength. The next key level lies at $48.47.
- Brent, in its turn, retested the upper border of the consolidation range at $62.66. The next resistance is placed at $63.6. In the case of the fall, we need to keep an eye on the lower border of the consolidation at $57.6. The next support is at $57.5.
- On the H4, USD/CAD bounced from the 200-period SMA at 1.3427 and plunged below the 100-period SMA. The pair has tested the lows below the 1.3373 level. If bears continue to drive the loonie down, the next support will lie at 1.3357. On the other hand, pay attention to the resistance at 1.3409. The next level for bulls will lie at 1.3419. Next, the CPI release and the FOMC meeting will likely determine the direction for the pair.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.