Home Daily Analysis Forex Market Overview Daily FX Brief, July 10 – Top Trade Setups In Forex, FOMC...

Daily FX Brief, July 10 – Top Trade Setups In Forex, FOMC In Highlights!


On Wednesday, the greenback neared a three-week high against a basket of other forex pairs as investors continued to unwind bets on deep U.S. interest rate cuts, pushing Treasury yields higher.

Sentiments for a 50 basis point (bps) rate cut at a Fed conference later this month have disappeared, but traders still anticipate a 25 bps cut amid soft inflation and worries around growing business fallout from the U.S.-China trade war.

Economic Events to Watch Today


EUR/USD – Daily Analysis

The EUR/USD pair continued to drop by 0.10%, maintaining 3-day losing streak as all of the eyes stay Powell’s speech and Fed minutes. Well, we can relate the recent declines with the unexpected Non-farm payrolls data released by the U.S. on Friday, as it was at that point when the market reversed the dovish policy sentiment to hawkish one. Yet, the market isn’t on a move as thee are some expectations fears that the Federal Reserve Chairman Jerome Powells may cut the rates for a July.

Euro trade on bearish track due to the depressing German factory data released on Monday and Tuesday. Moreover, the Federal Reserve Chairman Powells is ready to speak in front of the house Financial committee.

Meanwhile, investors are continuously expecting positive that the central bank cut the rates by 25 basis points in next month, there is enough room for a gathering in the U.S. Dollar if the Fed chairman Powells published less rate cut than expected, the market will force to increase the July rate cut.


Daily Support and Resistance
S3 1.1157
S2 1.1182
S1 1.1195
Pivot Point 1.1207
R1 1.122
R2 1.1232
R3 1.1257

The EUR/USD pair will probably regain some bearish momentum if Powell strengthens rate cuts expectations. As of writing, a break over the recent high of 1.1412 is needed to confirm a bullish reversal. Sustained weakness below the 1.1190 support will reinforce the recent bearish bias and turn the pair vulnerable to accelerate the slide further towards the 1.1130-25 intermediate support en route yearly lows – closer to the 1.1100 round figure mark.

GBP/USD – Daily Analysis

GBP/USD risks a break below 1.2400 as the United Kingdom data disappointment and less dovish Powell. The traders go back in the Asian trades, reached the GBP/USD pair bounced back to the midpoint of the 1.24 handle, tried crossing over 1.2500 but it failed many attempts around 1.2475 level.

The bullish bias remains weak and risks a break below 1.2400 due to UK data disappointment, whereas Fed Chairman Powells should hint at a smaller rate cut during this month.

The GBP/USD pair dropped and touched the 6-month lows of 1.2429 as Dominic Grieve’s attempt to block the suspension of Parliament in the fall will not be put to a vote on Tuesday. The Sterling continues to be pressured due to raising Brexit tensions a UK political uncertainty.

Daily Support and Resistance
S3 1.2325
S2 1.2399
S1 1.2431
Pivot Point 1.2472
R1 1.2505
R2 1.2546
R3 1.262

Consider staying bearish under 1.2475 to target 1.2425 and 1.2365 on hawkish policy minutes by Federal Reserve.

USD/JPY – Daily Analysis

The USD/JPY pair still trades at new highs in Tokyo’s opening hour of trade.

Lately, the pair rallied towards 108.96, a 6-week high level before gaining stability in the Tokyo trading hour. For now, the U.S. Dollar is a leader as investors are keeping high hope from the Fed chairman Powell’s hawkish sentiment speech.

Probably, we can say that the USD/JPY pair was not able to continue its gains beyond 109.00, due to rising fear and risks about an international economic downturn, and somewhat because uncertain interest pushed the U.S. Dollar bid before of Powell’s speech.


Daily Support and Resistance
S3 108.35
S2 108.6
S1 108.73
Pivot Point 108.85
R1 108.97
R2 109.09
R3 109.34

The USD/JPY pair is incapable to continue its gains over 109 trading level as a result of growing fears about a global economic downturn. On the 4 hours chart, technical indicators have hardly retreated from overbought levels, while the pair remains above all of its moving averages, and with the 20 SMA now crossing above the 200 SMA, both providing dynamic support around 108.35. So consider staying bullish above 108.75 to target 109.150 today. All the best!


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