Home Daily Analysis Forex Market Overview Daily FX Brief, July 02– Trade Setups In Forex, RBA Cut Rates!

Daily FX Brief, July 02– Trade Setups In Forex, RBA Cut Rates!

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On Tuesday, the U.S. Dollar gave up profits as traders curbed earlier passion about U.S.-China trade development while the Australian currency hardly shifted from recent lows after a central bank rate cut decision allowed few clues about future easing.

Economic Events to Watch Today

 

 


EUR/USD – Daily Outlook

Today in the early market, the technical side of the market failed to show a bearish breakout below 1.1275 as the pair EUR/USD is on the defending track. On Monday, the pair EUR/USD closed entirely below 1.13, invalidating the twin bullish signs of higher lows, higher highs and an inverse head-and-shoulders breakout confirmed on June 21.

Moreover, the U.S. Dollar gained support as the U.S. and China trade truce set expectations of aggressive United States Federal Reserve rate cuts in the coming months.

The pair EUR/USD is moving bearish after the White House announced another $4b in tariffs on the European Union, right after the U.S.and China trade truce from this weekend’s G20 meeting. According to the United States Trade Representative, these tariffs aim to enforce the U.S. rights in the WTO on the European Union over aircraft subsidies.

 

Daily Support and Resistance
S3 1.1151
S2 1.1231
S1 1.1259
Pivot Point 1.131
R1 1.1339
R2 1.1389
R3 1.1469

The EUR/USD continues to hold below 1.1300 level, but at the same time, it’s also facing support around 1.1275. Therefore, I may suggest staying bearish below 1.1320 and bullish above 1.1275 support. Besides, the bearish breakout of 1.1275 can lead EUR/USD towards 1.1240 today.


GBP/USD – Daily Outlook

The pair GBP/USD continues to trade bearish at 1.2627 falling to a ten day low, ahead of United Kingdom Construction PMI and Carney’s speech. The pair GBP/USD fails to present the latest fallback of the U.S. Dollar amid political doubt in the United Kingdom. The Cable takes the rounds near 1.2642 on Tuesday during starting into the London open.

Although, the U.S. dollar is slightly weaker as traders start profits taking during early Tuesday as traders assess recent positive indications from the Sino-U.S. trade patch up.

Daily Support and Resistance
S3 1.2629
S2 1.2634
S1 1.2636
Pivot Point 1.264
R1 1.2642
R2 1.2645
R3 1.265

Technically, the GBP/USD has violated the 1.26600 triple bottom support level, which is now providing a substantial hurdle to bulls. The 20, 25 and 50 periods EMA are also suggesting bearish bias.

We also can’t ignore the test bar on the 240 Min timeframe, which is suggesting strong bearish sentiment of traders. Consider staying bearish below 1.2690 today as the GBP/USD has the potential to go after 1.2620 and 1.2600 today.


AUD/USD – Daily Outlook

The AUD/USD pair exhibited insane volatility during the Asian session as the pair fell and rose within a few minutes after the Reserve Bank of Australia (RBA) cut the interest rate by 0.25% base points. Today in the early Asian market, the U.S. dollar dropped even though the U.S. and China hint a trade truce. The Australian Dollar increased due to the reserve bank of Australian cut interest rates.

The AUD/USD pair rises to 0.6980, after falling to 0.6956 as the Reserve Bank of Australia (RBA) reached market-wide expectations of 0.25% rate cut. The U.S. dollar index that gauges the performance of the greenback against the bucket of other currencies dropped 0.1% to 96.352.

The Reserve Bank of Australia (RBA) rate cut to a record low of 1.0%, whereas the Australian central bank expects a good outlook for the global economy.

Daily Support and Resistance
S3 0.6966
S2 0.6971
S1 0.6973
Pivot Point 0.6976
R1 0.6978
R2 0.6982
R3 0.6987

On the daily timeframe, AUD/USD has closed a bearish Cypher pattern which has completed CD wave to 0.7050. For now, the Fibonacci retracement level is likely to support Aussie around 0.6960. Below this, the pair has the potential to go after 0.6930.

Let’s now keep an eye on 0.6960 as the AUD/USD is likely to trade bullish and bearish below this level. Consider placing trades with 30 pips SL and 50 pips TP on both sides. All the best!

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