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8/6/2019 Forex Market Insight 18 July 2011
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Market Insights 18 July 2011
Markets finish last week on slightly positive note, despite weaker US economic data
EUR, GBP ease lower into weekly close
AUD sharply lower on Friday after Westpac first bank to say RBA might cut rates
Dow sees late rally to close 0.3% higher, Nasdaq gains 1.0%
Risk currencies gap lower on Monday openThis week’s big driver likely to be US debt ceiling discussions with 22 July deadline looming
Headlines
AUD/USD
XAU/USD
Resistance
1.0800
Support
1.0620Market Sentiment
Bearish
The Aussie was hit on Friday night after Westpac came out as the first bank to downgrade expectations for further interestrate increases. This news led the AUD/USD below previous support at 1.0695 and support now moves lower to 1.0620. Abreak of support at 1.0620 sets up a move back to 1.0500.
Gold has popped higher on Monday morning’s open but failed just shy of 1600. This level will be of crucial importance andtraders will be waiting for a break of that level to participate in the next move higher. Looking lower, support is seen at 1575(at the previous all-time highs) and traders will also be looking to pick up new longs at these levels.
Resistance
1600
Support
1575Market Sentiment
Bullish
8/6/2019 Forex Market Insight 18 July 2011
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EUR/USD
GBP/USD
USD/JPY
The USD/JPY remains trapped in its broad new trading range below 79.60. Any move back into the 79.30/60 zone is likely tattract new sellers. A clear move below 78.50 could cause the Bank of Japan to intervene in currency markets so any movlower will see traders become more cautious of upside risks.
The pound’s inability to push above 1.6200 now present a more bearish picture and the downbeat tone of early Mondaytrading also suggests that the pound might face pressure early this week. In the near term, a break of 1.6075 will producefurther selling with the potential for a move back to 1.5950.
The Euro has failed at the underside of the multi-week symmetrical triangle and this set up the EUR/USD for further falls. TheEuro gapped lower this morning, so traders will be looking to take new shorts on any signs of strength. The next level fosupport is seen at 1.3960 and then at 1.3840.
Resistance
1.4200
Support
1.3960Market Sentiment
Bearish
Resistance
1.6200
Support
1.5950Market Sentiment
Bearish
Resistance
79.60
Support
78.50Market Sentiment
Bearish
8/6/2019 Forex Market Insight 18 July 2011
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SILVER
USD/CHF
GBP/JPY
No real change on the GBP/JPY, with the pair struggling at resistance at 128.20. While the pair remains under 128.20, thmarket is likely to focus on the downside. Over the medium term, any move lower is likely to target 125.30.
The USD/CHF continues to trade at lower levels and the fear surrounding the US’s debt negotiations continues to grow. Thmarket remains focused on the downside on this pair, with any move up to 82.00, or a break below 80.80, seen as anopportunity for new shorts.
Silver saw some slight selling pressure toward the end of last week, but it’s managed to bounce from higher support levels andis now moving back toward the recent highs at 39.40. With gold surging higher in recent weeks this has helped silver also posgains. A break of 39.40 will be seen as bullish.
Resistance
39.50
Support
38.00Market Sentiment
Bullish
Resistance
82.00
Support
80.80Market Sentiment
Bearish
Resistance
128.20
Support
125.30Market Sentiment
Bearish
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AUD/JPY
OIL
Economic Calendar
The information contained in this communication is intended for informational purposes only and is not by any means t o be considered "research". Forex Capital Trading Ltd and all of its subsidiaries and affiliates (“the Company”) endeavo
to ensure that the information provided in this communication is complete and correct but do not guarantee its accuracy or reliability. Information, data and opinions may change without notice so readers must check any material item(s) wan advisor before making any trading decisions. The Company is not obliged to update you if the information or data changes. The Com pany does not provide investment advice or m ake any recommendations to investors or traders. Tinformation and analysis in this communication is derived from a variety of sources and using methods that a reasonable person would deem to be reliable. However, the Company cannot accept r esponsibility for any trading losses you mincur as a result of your reliance on this analysis or information. We will not be held liable for the consequence of reliance upon any opinion, statement or omission contained herein. Investors should consult with a certified financial advisbefore engaging in any trading activities. AFSL306400
Forex Capital Trading – Ph 1800 ForexCT
F/Cast Last F/Cast Last
» AUD: New Motor Sales -7.6% » USD: NAHB Housing 15 13
» USD: TIC Long Term Purch 48.4B 30.6B » » » » » » » »
Crude oil remains trapped in the middle of the larger trading range and trader will be waiting for a move to either extreme
before taking new positions. With global markets starting the week on a downbeat note, a break of 94.00 will be seen abearish.
The AUD/JPY has been driven below support at 84.20 on the back of Westpac’s downgrade of local interest rate expectationsThe next major level to the downside is 83.20 with and breach of that level likely to be seen as extremely bearish for thispair.
Resistance
99.00Support
94.00Market Sentiment
Rangebound
Resistance
84.20Support
83.20Market Sentiment
Bearish