Trade ideas for August 2-6
What events to follow and how to trade during the week of July 2-6?
USD is heading for the best week in three
Latest news
- The US dollar is heading for the best week in three. The market sentiment is mixed as optimism about the global economic recovery was outshined by increasing tensions between the West and China. The European Union joined the US in sanctioning China’s Xinjiang region.
- Chinese tech stocks dropped on worries they will be de-listed from US exchanges. Alibaba, the Chinese e-commerce group, plunged to lows unseen January.
- US unemployment claims dropped to a one-year low last week, signaling the sustained economic recovery in the USA.
- Crude oil prices surged on news that one of the largest container ships is still stuck in the Suez Canal.
Technical analysis
EUR/USD has been moving in a descending channel since the start of this year. It has bounced off the lower trend line. If bulls keep momentum, it may rise to the 200-day moving average of 1.1860. On the flip side, if it drops below the support level of 1.1760, the way down to the psychological mark of 1.1700 will be open.
GBP/USD has approached the resistance of 1.3770. The move above this level will drive the pair to the 50-day MA of 1.3825. In the opposite scenario, if it manages to break yesterday’s intraday low of 1.3735, the doors will be open to the next support of 1.3680.
USD/JPY has been moving sideways between 108.35 and 109.35. Finally, it has broken through the resistance of 109.35.Thus, the way up to the next round number of 110.00 is open. Support levels are 109.35 and 108.90.
Finally, let’s talk about gold. It has formed a triangle pattern. Therefore, we should look for a breakout. If it crosses the lower line of the triangle at $1725, the way down to the low of March 10 at $1713. On the flip side, the move above the upper line at $1735 will push gold further up to yesterday’s high of $1746.
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