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!
Trading on Tuesday: Earnings Reports and US Inflation
- The earnings season starts today! Traders await reports from JPMorgan and Goldman Sachs at 14:00 and 14:30 GMT+3, respectively, and PepsiCo at 13:00 GMT+3. As a rule, the strong financial results push the stock price up, while poor data press it down. To get more tips, read the article: ‘How to trade on earnings reports’.
- Banks and financial stocks led the S&P 500 to a new all-time high, while Tesla, Nvidia, and Google helped push the tech-heavy Nasdaq 100 to a fresh record.
- Virgin Galactic has lost almost $500 million on the stock-sale plan after its founder Richard Branson flew to space. Virgin Galactic dropped by 17% to nearly $40.00, which was the biggest decline since December 14.
- The market awaits the US inflation today at 15:30 GMT+3 (MetaTrader time). It will shed a light on whether the Fed may start tightening the policy soon or not.
EUR/USD is moving inside the descending channel. If it manages to cross the 50-period moving average of 1.1845, it may fall to the low of July 9 at 1.1830 and then even to 1.1810. On the flip side, the breakout above the 100-period moving average of 1.1880 will push the pair to the psychological mark of 1.1900.
Gold has been rising for almost the whole July so far. However, it has still failed to cross the 38.2% Fibonacci retracement level of $1815. The breakout above it will push the pair to the next resistance level of $1833, which lies at the 50% Fibo level.
NZD/USD has failed to cross the 50-period moving average of 0.7000. Now, the pair is edging lower to the 0.6965 support. If it manages to cross it, it may fall to the low of July 9 at 0.6930. In the opposite scenario, the jump above the 0.7000 threshold will open the doors to 0.7040.
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.