Home Daily Analysis Forex Market Overview Daily FX Brief, July 01– Trade Setups In Forex, G20 Summit Triggers...

Daily FX Brief, July 01– Trade Setups In Forex, G20 Summit Triggers Gap!

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The U.S. Dollar index surged dramatically on Monday after the United States and China accepted to restart their shaky trade talks, while the Japanese yen and Swiss franc were the significant victims as investors sold safe-haven currencies.

G20 Summit concluded with Donald Trump saying it holds back on additional tariffs and that China will buy more farm products. Trump also announced the U.S. Commerce Department would consider whether to take Huawei off the list of firms banned from purchasing components and technology from U.S. companies without government permission.

Economic Events to Watch Today

 

EURUSD – Daily Outlook

The EUR/USD moved to 200 Days EMA as the E.U. leaders continue to break over top jobs. The pair slipped below 1.13600 support area after the United state and China trade truce. Also, the European Union meeting continues moving into trouble between political disputes. Moreover, during the meeting in Brussels, the E.U. leaders failed to agree on the top job announcement, placing additional weight on the EUR/USD.

Unemployment rate & Manufacturing PMI from the U.S. and Eurozone can offer intermediate support, whereas political movements are likely controlling the trade momentum.

Daily Support and Resistance
S3 1.1286
S2 1.1329
S1 1.1349
Pivot Point 1.1371
R1 1.1392
R2 1.1414
R3 1.1457

Let’s keep an eye on 1.1320 today as the EUR/USD may continue trading bullish above and bearish below this level. Whereas, the bullish target stays at 1.1360/82 and bearish target prevails at 1.1300/1.1268.

GBP/USD – Daily Outlook

The Cable is trading around $1.2650, right above the triple bottom support area. That’s the most highlighted level since few days as the GBP/USD had been trading over this level since the last couple of weeks.

Global traders again think about how the U.S. and China could progress forward after the recent trade truce. Considering the U.K. political movements and conditions, the pair GBP/USD traded quietly flat around 1.2700 during the Asian session. Investors further may now look for monthly manufacturing PMI numbers for new inspiration.

Meanwhile, the United States and China eventually agreed to stop further increases and disputes in their trade war. Although essential issues concerning the technology transfer property rights are remaining unsolved, the market seems to be buying the oversold dollar.

Daily Support and Resistance
S3 1.2559
S2 1.2629
S1 1.2663
Pivot Point 1.2699
R1 1.2733
R2 1.2769
R3 1.2838

I would consider staying bearish below 1.2690 today as the GBP/USD has the potential to go after 1.2620 and 1.2600 today.

USD/JPY – Daily Outlook

The pair USD/JPY traded bullish around 108.250 as the to positive trade talk between the U.S. and China faded the safe-haven appeal. Earlier today during the Asian open, the USD/JPY gapped to the upside amid President Donald Trump and Xi Jinping agreed to continue trade talks.

Trump visited North Korea, after meeting Kim Jong-un, both countries agreed to arrangement teams to continued delayed nuclear talks. Let’s see what happened today.

Daily Support and Resistance
R3: 108.53
R2: 108.18
R1: 108.05
Key Trading Level: 107.83
S1: 107.7
S2: 107.48
S3: 107.12

The pair USD/JPY jumped the 108 level and reached near 108.51 in a high gap to the upside but has since descended back to a current 108.16 low. The USD/JPY may face resistance around 108.550 along with support around 108.100. Below this, the next support stays around 107.800, the bearish trendline level which was working as resistance last week.

Consider staying bullish over 107.850 to target 108.500 today. All the best!

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