What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
USD softened on Tuesday
- The US is going to unveil the much-awaited $1.9 trillion stimulus package. US Treasury Secretary Janet Yellen claimed that Biden’s stimulus should help to speed up a “very strong” US economic recovery, and also emphasized that “there are tools” to deal with inflation.
- As a result, the market sentiment slightly improved, but investors remain cautious as they think a huge stimulus may drive the economy to overheat and inflation to get out of control.
- Nasdaq retreated after Monday’s deep slump. S&P 500 climbed as well but stayed below the resistance of 3,850.
- US Treasury yields rose on expectations for higher inflation and faster economic rebound. The US dollar index reached November’s highs.
- Oil dropped due to the strong greenback and an attack on the world’s largest crude terminal in Saudi Arabia.
EUR/USD has bounced off the 200-day moving average of 1.1815. If the pair manages to rise above the resistance of 1.1950, the way up to the 100-day MA of 1.2030 will be clear. Support levels are 1.1815 and 1.1775.
GBP/USD is heading upwards as well. If it jumps above the high of March 5 at 1.3900, it may rise to the next resistance of 1.3950. Support levels are 1.3800 and the 50-day MA of 1.3750.
USD/JPY’s rally is unstoppable! It has broken the 200-day MA of 109.00. Therefore, the way up to the high of May 2020 at 109.50 is clear. However, the RSI hit the 70.00 level, indicating the pair is overbought. Besides, the price has surpassed the upper line of Bollinger Bands a few days ago. Therefore, we may see a pullback soon. Support levels are 108.50 and 108.00.
Gold has been dipping in both the long and short terms. Gold may rise to the resistance of $1,700, which it can struggle to break. But if crosses it, the way up to the high of March 2 at $1,740 will be open. Support levels are $1,675 and $1,650.
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!
Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
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.
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!