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Daily FX Brief, July 05 – Top Trade Setups In Forex – NFP In Highlights!


On Friday, the dollar remained strong but traders were off on performing big bets ahead of the closely-watched U.S. non-farm jobs announce that could affect the course of near-term Federal Reserve policy. The dollar index had dropped to a three-month dip of 95.843 last week as U.S. Treasury yield collapsed to 2-1/2-year lows on sentiments that the Fed would lower interest rates this year, beginning as early as this month.

Economic Events to Watch Today

EUR/USD – Daily Outlook

The U.S. Dollar is steady as the market remains supported ahead of the
U.S. jobs report. Today in the early market, the U.S. Dollar steady but traders feel hesitant to perform high bets ahead of closely monitored Non-farm that could impact the near term Federal Reserve policy decisions.

A day before, the major currency pair EUR/USD witness a minor intraday bounce in response to disappointing U.S. macroeconomic data – dispensing that private-sector businesses totalled less-than-expected 102K new jobs in June. Besides that, the ISM non-manufacturing PMI dropped to 55.1 versus 55.9 forecasts and 56.9 figure last month.

On the technical side, nothing seems to have changed for the EUR/.USD and investors are likely to wait for a certain breakthrough in the near-term trading range.

The EUR/USD is likely to face immediate support around 1.1275-70 region – marking 61.8% Fibo levels of the 1.1281-1.1412. The violation of this range might turn the pair defenceless to head back towards challenging the 1.1200 support level along with some moderate support around 1.1235 area.

Daily Support and Resistance
S3 1.1249
S2 1.1266
S1 1.1276
Pivot Point 1.1283
R1 1.1293
R2 1.13
R3 1.1317

Consider staying bearish under 1.1275 to target 1.1245 today.

GBP/USD – Daily Outlook

The GBP/USD pair managed to shift from 2-week dips of 1.2560 during the early Asian session. It’s been consolidating in the narrow range of 1.25800 – 1.2550 ahead of top tier economic catalyst NFP. Having originally granted the ability to present a trade deal with the EU, the UK Prime Minister (PM) applicants recently began to pledge lavish spending plans. Anyhow, the market still remains uncertain in the wake of Brexit & upcoming British PM.

On the fundamental side, the British Halifax House Prices will remain in highlights for the GBP/USD traders, however, the US employment figures remain the ultimate chief of the market.

Daily Support and Resistance
S3 1.254
S2 1.256
S1 1.257
Pivot Point 1.2579
R1 1.259
R2 1.2599
R3 1.2619

I would consider staying bearish below 1.2580 today and the GBP/USD has a high potential to go after 1.2520 today. Be safe, NFP may change trends during the U.S. sessions.

USD/JPY – Daily Outlook

The pair USD/JPY traded sideways between 107.70 and 107.90 throughout the Tokyo session and there has been little response in the first hour of the trade before of the Nonfarm Payrolls.

With the July holidays, the markets were mostly muted, and there’s nothing much from the U.S. session. However, the European session came with yet more dovish sentiment along with bearish figures that missed expectations about the next policy decision by ECB.

Daily Support and Resistance
S3 107.6
S2 107.7
S1 107.75
Pivot Point 107.8
R1 107.85
R2 107.9
R3 108

On the technical side, USD/JPY is making a solid upward movement, breaking above 107.900 to target 108.150. The violation of 108.150 hurdles could trigger further buying in USD/JPY until 108.500. Whereas, the support stays around 107.500 today.

Let’s keep an eye on 107.850 as the pair has a huge potential to stay bullish and bearish below the same levels. All the best for NFP today!


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