Home Daily Analysis Forex Market Overview Daily FX Brief, Aug 06 – Forex Trade Setups, Dollar Weakens Further!

Daily FX Brief, Aug 06 – Forex Trade Setups, Dollar Weakens Further!

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On Monday, the Dollar Index sank 0.9% on the day to 97.22, amid heightened U.S.-China trade tensions. Further, the U.S. Treasury formally labelled China a currency manipulator, following a slump in Chinese yuan against the dollar to its weakest level since 2008. USD/CNY jumped 1.6% to 7.0508.

The U.S. dollar declined after Washington labelled Beijing a currency manipulator, indicating an explicit escalation in the year-long trade dispute between the two economies.

A weaker dollar makes greenback-denominated metals cheaper for users of other currencies. However, gains were capped as rising tensions between the United States and China threatened global economic growth and demand for metals.

Economic Events to Watch Today

 

 

 

EUR/USD – Daily Outlook

The EUR/USD currency pair trading upward due to German Factory Orders data. At the starting of the day, the EUR/USD currency pair hit a bullish track due to German Factory Orders data, having charted a bullish hammer reversal on the daily chart beginning this week.

Such as, the EUR/USD currency pair is trading at 1.12. Expectedly the EUR/USD currency pair pulled back to the psychological level, touched a high level of 1.1250 at the starting of the day.

As of writing, big-beat on German Factory Orders data will support the bullish technical setup and provide smart move to 1.1250. Besides, a huge miss regarding expectations could yield a decline to 1.1180.

Whereas, the German Factory Orders data, scheduled for release at 06:00 GMT, and expected to present the Factory orders rose at a seasonally adjusted rate of 0.5% month-on-month in June but has fallen 2.2% in the previous month.


 

Daily Support and Resistance

R3: 1.1382
R2: 1.1281
R1: 1.1248
Pivot Point: 1.1181
S1: 1.1147
S2: 1.108
S3: 1.098

EUR/USD – Trade Tips

Consider staying bullish above 1.1180 with an immediate target of 1.1240 and 1.1280.

AUD/USD – Daily Outlook

The AUD/USD currency pair rose due to RBA allows no policy change. Today in the early European market, the AUD/USD currency pair continues to hit the bullish track a presently trading at 0.6780, due to Reserve Bank of Australia refraining from fresh rate cut hints.

Meanwhile, the Reserve Bank of Australia meets a comprehensive market consensus whereas, its monetary policy still stable, which allows a 1.0% interest rate. The central bank refrains from helping additional rate cut while leaving the door open based on expected growth conditions.

Besides, at the starting of the day, high-beat trade balance data also pleased Australian dollar buyers.

On the other hand, market fears have been risky due to the United state, and China trade war increased further ahead of the United States termed China as a currency manipulator. Besides, China worried the U.S. testing missiles and warned to retaliate while also gave a criticism regarding the Donald Trump administration’s behaviour on trade and political concerns.


 

Daily Support and Resistance
S3 0.6686
S2 0.674
S1 0.677
Pivot Point 0.6794
R1 0.6824
R2 0.6847
R3 0.6901

AUD/USD – Trade Tips

Let’s keep an eye on 0.6800 as the AUD/USD is likely to stay bearish below and bullish above the same. On the upper side, AUD/USD is likely to target 0.6797, 0.6830 and 0.6865 on the upper side. While 0.6740 and 0.6700 remain the lower target.

GBP/USD – Daily Outlook

The GBP/USD continues on the Recovery track, Ignores no-Brexit deal anxieties. Today in the early market, the GBP/USD currency pair continues trading at the recovery track despite the no-Brexit deal, the pair ignore the concerns of the no-Brexit deal and remain safe as it pulls back to 1.2160.

Meanwhile, given the summer break in the parliament of Britain, all investors may keep the focus on headlines regarding macro for fresh direction.

The European Union lawmakers are also not happy for the Brexit deal negotiations with the United Kingdom, according to Sky News, Prime Minister Johnsons strong stand against the earlier discussed deal with the Theresa May ex-PM of the UK.

Hence, the political and trade news has been prominent since the Asian starts as formally termed China as a currency manipulator and Korea experiment fired 4th round of missiles.


 

Daily Support and Resistance

S3 1.1982
S2 1.2062
S1 1.2112
Pivot Point 1.2141
R1 1.2191
R2 1.222
R3 1.23

GBP/USD – Trade Tips

Consider staying bullish above 1.2180 once it’s violated while having a target of around 1.2250 today. All the best!

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