Home Daily Analysis Forex Market Overview Daily FX Brief, July 19 – Top Forex Trade Setups on Friday!

Daily FX Brief, July 19 – Top Forex Trade Setups on Friday!

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On Friday, the greenback is steadied but was quite on the defensive after the Federal Reserve leaders bolstered sentiments of an aggressive rate cut this month to address weakening price pressures. Today the market is focusing on the Canadian retail sales and U.S. consumer confidence data. Let’s take a look…

Economic Events to Watch Today

 

 

EUR/USD – Daily Outlook

The EUR/USD currency pair created a double bottom at 1.12, focus on German PPI. The EUR/USD currency pair is trading at 1.1262, the pair hit the session low level of 1.240 and created a minor double bottom near 1.12 due to the drop of the U.S. Dollar after the statement from Fed’s Williams. A breach above 1.1286 would create a place for a rally to 1.1380.

On the flip side, minor double bottom during the European session will decline if the German producer price Index, unexpectedly decreases, strengthening dovish European Central Bank (ECB) hopes. The EUR/USD currency pair will continue on the track of a minor double bottom near 1.12.

Any kind of weakness seen following German data could be changed during the U.S. session if this misses forecast by a big margin and Federal Reserve’s Bullard sounds dovish, highlighting the need for insurance cuts.


 

Daily Support and Resistance
S3 1.1104
S2 1.1179
S1 1.1228
Pivot Point 1.1254
R 11.1304
R 21.133
R 31.1405

EUR/USD – Trade Idea

Consider staying bullish above 1.1254 to target 1.1280 and 1.1300.

GBP/USD – Daily Outlook

Earlier today, the GBP/USD currency pair hit the bullish track of a 4-day high due to the weaker U.S. dollar and Brexit optimism. The GBP/USD currency pair is trading on the bullish track of four-days high as the U.S. dollar is under pressure amid dovish policy sentiments.

GBP/USD’s new low was not been endorsed by the intraday RSI and divergence served in speculative bullish bias. However, the market now trades below the 1.2594, the double top levels.

For now, the 1.2457 comes in as the 38.2% Fibo of the 12th July to recent lows retracement while a continuation to the upside, stop territory comes in between 1.2500 and 12530 – So there are prospects of a short squeeze still to come until attention can be reverted back to the downside bias.


 

Daily Support and Resistance

S3 1.226
S2 1.2386
S1 1.2467
Pivot Point 1.2513
R1 1.2593
R2 1.2639
R3 1.2765

GBP/USD – Trade Idea

Consider staying bullish above 1.2500 with a stop below 1.2470 and target at 1.2550 today.

USD/JPY – Daily Outlook

The USD/JPY currency pair fluctuates around 107.80/85 as the U.S. dollar strengthens. The USD/JPY currency pair is starting to touch the bullish track after recovering from monthly lows as it takes the bids to 107.5, due to mounting chances of trade talks between the U.S. and China.

Secondly, the reason is this, the New York Federal Reserve announcement changing the importance of the president Williams dovish statement. Today, all eyes stay on the U.S. Michigan Consumer Sentiment Index(July), expected 98.5 versus 98.2.


 

Daily Support and Resistance

S3 105.89
S2 106.69
S1 106.98
Pivot Point 107.5
R1 107.79
R2 108.31
R3 109.11

USD/JPY – Trade Idea

The Japanese pair is testing the support resistance level of 107.700. The 20 and 50 periods EMA is also suggesting a bearish bias along with the bearish trendline resistance.  Consider staying bearish under 107.70 and bullish above this level to capture quick 50 pips on both sides. All the best!

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