The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
Oil and BTC Surged, EUR Awaits ECB
- Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3). The bank is expected to update its strategy, which may allow inflation to overrun the 2% goal. If it is the case, it will signal that the bank won’t tighten the policy earlier than expected, which will limit the upside potential for the EUR.
- The earnings season continues. Yesterday, Johnson & Johnson, Coca-Cola, and Verizon revealed better-than-expected earnings results for the second quarter. It helped to improve the market sentiment. The USD weakened.
- Today, Intel, AT&T, and Twitter will reveal their financial results. AT&T will post its data at 14:00 GMT+3, while Intel and Twitter will make releases after the stock market closes.
- Oil prices skyrocketed! The jump was driven by a drop in US stockpiles and a broader market rally.
- Bitcoin is recovering losses. It has just rose above $32,000 after Musk said Tesla is likely to accept it as payment again. In add, Cathie Wood of ARK Investment claimed that the BTC is a hedge against inflation. However, Guggenheim Partners, an investment firm, forecasts the BTC to drop to $15,000 due to rising competition with other coins.
EUR/USD is moving inside the descending channel. The pair keeps attacking the 1.1800 resistance level but to no avail. Besides, the trendline and the 50-period moving average are strong barriers which the pair will struggle to break. Thus, we might expect a reverse down from the current levels. On the way down, EUR/USD may meet support levels at 1.1770 and 1.1750.
XAU/USD has reversed up after touching the 100-day moving average of $1795. The chain of long lower tails tells us that the price was rejected at the support zone of $1790-1795. Thus, we might expect gold to rise to the 38.2% Fibonacci retracement level of $1815 today, but the current momentum is weak and we should wait for some time. In the opposite scenario, if gold breaks below the support zone of $1790-1795, it will fall to the next round number of $1775.
It’s a really interesting movement in the AUD/USD pair. The pair has reversed up from the 0.7300 support level and the last two green candles signal us that the bullish momentum is strong and the rally up may continue till 0.7400. If the pair manages to break it, it may jump to the high of July 16 at 0.7440.
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.