What events to follow and how to trade during the week of July 2-6?
What moves the market on June 22?
The market sentiment is mixed. China’s outbreak appeared to fade, what set the risk-on tone. At the same time, risk-off is fueled by the resurgence of new cases in the USA and some parts of Europe. Moreover, the US-China tensions are on the table again as China released details of a national security law that would give it the right to directly prosecute Hong Kong residents for still vaguely defined offenses. Also, US attempts to push the ceasefire in Libya as well as geopolitical tensions in Asia are catalysts that weigh on the trading sentiment.
The market uncertainty pushed gold up. The price retested the monthly high at 1750. It may continue rising, until it meets the resistance at 1762. At that moment or even earlier, gold can have a pullback. It has been trading in a range between 1680 to 1750 for quite a long time. If it breaks above this range, it will push the price higher. Otherwise, the move below 1717 will push the price even lower to the key psychological mark at 1700 and then 1680.
EUR/USD dropped significantly after rising for a month. However, it struggles to break down the support at 61.8% Fibonacci level at 1.1165. If it crosses it, it will open doors towards the next support at 1.1065, where the 200-period moving average lies. In opposite, if bulls get stronger, EUR will jump to the 100-period moving average at 1.125. However, many analysts have bearish prospect for EUR.
Receding figures of the coronavirus from China offer a boost to the market’s mood. S&P 500 has just crossed 3060. If it continues climbing up, it will meet the resistance at 3110. The support level is at 200-day moving average at 3020. If it breaks it down, it may fall even deeper to 3000.
Let’s move on to oil. The Brent oil price has just passed $42. Now it’s moving up towards the resistance at 50% Fibonacci level at $45. Support levels are $39 and $36.
To trade Brent with FBS you need to choose BRN-20N.
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!
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!