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Daily FX Brief, July 12 – Quick Trade Setups In Forex to Trade on Friday


It’s been a volatile week and I hope you have captured some nice trades. We are approaching the weekend and the market may have more opportunities for us before it closes on Friday. A day before, the U.S. indices closed mixed on Thursday, with the Dow Jones Industrial Average closing 227 points higher at a record high of 27,088. The S&P 500 rose 6 points to 2,999, while the Nasdaq eased 6 points to 8,196.

The official data showed that U.S. core CPI rose 2.1% on year in June (vs. +2.0% expected and in May), while initial jobless claims fell to 209,000 in the week ending July 6 (vs. 221,000 estimated) from 222,000 in the previous week.

Let’s find out what’s next on the docket waiting for us today.

Economic Events to Watch Today

EUR/USD – Daily Analysis

The euro was little changed at $1.1250. Later today, the eurozone’s industrial production for May will be released (vs. +0.2% on month expected). The EUR/USD currency pair examining key trendline hurdle around 1.1265 while investors await the industrial production figures.

Once again the EUR/USD currency pair touched to the resistance level of the tradeline and face a hurdle above the support level of May 30 and June 18 lows. As you can see, the resistance of the tradeline is marked at 1.1272. On Thursday, the point did rise above that technical trend line but didn’t successfully close candles outside the range and reversed back.

Today on Friday, the possible resistance break could be seen during the day, if the Industrial production economic data scheduled at 09:00 GMT, suddenly comes out to be better than forecast, easing concerns of a deeper economic slowdown in the 18 nation’s currency.

Daily Support and Resistance
S3 1.118
S2 1.1221
S1 1.1237
Pivot Point 1.1262
R1 1.1278
R2 1.1302
R3 1.1343

EUR/USD – Trade Tip

Let’s keep an eye on 1.1270 resistance zone as the violation of this level can bring further buying until 1.1310. Below 1.1270, the pair can stay bearish until 1.1240.

GBP/USD – Daily Analysis

The British pound rebounded for a second day, gaining 0.2% to $1.2521. The GBP/USD currency pair is still on the bullish track despite UK’s political concerns. Recovery of the pair continues for the third consecutive day due to the GBP/USD pair holding right above 1.2520 support.

The GBP/USD pair showed a slight reaction towards the uncertainty of Brexit and political issues as market focus on the U.S. Dollar weakness amid dovish expectations by the policymaker of the U.S. Federal Reserve.

Daily Support and Resistance
S3 1.2411
S2 1.2473
S1 1.25
Pivot Point 1.2536
R1 1.2562
R2 1.2598
R3 1.26

GBP/USD has violated the bearish channel at 1.2480 which is one of the major indications of a bullish bias among traders. For the moment, the cable trades at 1.2535 where it’s likely to face resistance at 1.2540. The bullish breakout of this level can extend the buying trend until 1.2595.

GBP/USD – Trade Tip

Today, I will be keeping an eye on 1.2530 to stay bearish under or bullish above this level to target 1.2590 on the upper side. While the bearish target stays around 1.2500 and 1.2480 today.

USD/JPY – Daily Analysis

The USD/JPY edged lower 0.1% to trade at 108.30, supported by Treasury yields and it probably may face resistance above 108.650. The drop in USD/JPY currency pair may be limited as the U.S. stocks and Treasury yields trade the risk-off sentiment.

Considering the technical side, we can expect USD/JPY pair to trade within the level of 108.00 to 109.00 during the U.S. session as the markets struggle to find the clear direction in the absence of top-tier catalysts.

Daily Support and Resistance
S3 107.04
S2 107.67
S1 108.08
Pivot Point 108.3
R1 108.71
R2 108.94
R3 109.57

USD/JPY – Trade Tip

Consider staying bearish under 108.250 to target 107.900 on the lower side. Alternatively, buying is suggested above 108.250 with a target of 108.450 and 108.650. All the best!


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