Home Daily Analysis Forex Market Overview Daily FX Brief, July 26 – Top Forex Trade Setups, US Advance...

Daily FX Brief, July 26 – Top Forex Trade Setups, US Advance GDP In Focus


On Friday, the greenback stayed near a two-week high versus the yen as forex traders trimmed expectations for competitive Federal Reserve interest rate cuts ahead of key U.S. economic data later in the day.

On the fundamental side, traders await the GDP data, which is due from the United States later today at 12:30 GMT. The data is likely to attract the most attention, and most economists and researchers are expecting a cooldown in Q2 GDP data after a strong Q1 GDP print.

Economic Events to Watch Today

AUD/USD – Daily Outlook

The AUD/USD currency pair hits the level of two-week lows as the Australian bond yields decline. Today in the early market, the AUD/USD currency pair presently trading at 0.6945, hit a bullish level of two-week lows 0.6941 a few minutes ago. That was the lowest level since 10 July, due to record lows in Australian government bond yields.

Earlier today, Australia’s ten-year government bond yields declined to 1.226%. Meanwhile, the 2-year yield also touched the lowest level of a lifetime, 0.877% during the overnight session.

As of writing, the 10-year yields fell by more than 10-basis point in the last ten days, and a 2-year yield has dropped to 13-basis points.

On the other side, the Australian Dollar could fall further due to Australian Dollar yields showing no signs of life, while the possibilities of the aggressive rate cut by the Fed will probably fall, supporting the Greenback, if the U.S. 2nd quarter GDP, due at 12:30 GMT, improves forecast by a big margin.



Daily Support and Resistance
S3 0.6943
S2 0.6962
S1 0.697
Pivot Point 0.698
R1 0.6988
R2 0.6999
R3 0.7018

AUD/USD – Trade Tips

Consider staying bearish below 0.6980 to target 0.6915 today. We can also expect some buy around this level.

EUR/USD – Daily Outlook

Today, most of the focus stays on the US GDP after the European Central Bank sends EUR/USD currency pair in a bearish track. Today in the early market, the EUR/USD currency pair stable near 1.1150 after hitting the lowest level since 2-year of 1.1101.

It’s mostly because the European Central Bank started cutting rates and QE but avoided from the imminent move. Meanwhile, the currency pair quickly recovered afterwards.

All currencies are unchanged during this period due to all focus on the release of the U.S. GDP growth for the 2nd quarter. Expectations stand at a slowdown from 3.1% to 1.8%. Probably expectations may increase as upbeat durable goods orders.

On the Geopolitical front, concerns surrounding North Korea and Iran continue, but fail to move currencies. Mike Pompeo the US Secretary of State said the opportunity is open to discussions with Korea despite recent missile experiments.


Daily Support and Resistance
S3 1.1084
S2 1.1113
S1 1.1127
Pivot Point 1.1142
R1 1.1156
R2 1.1171
R3 1.12

EUR/USD – Trade Tips

Well, most of the moment depends upon the U.S. GDP data as positive figures may drive bullish movements above 1.1140 and bearish below the same in case of GDP figure below 1.8%.

USD/JPY – Daily Outlook

The USD/JPY currency pair rallied overnight due to key US data today. During the Tokyo session, the USD/JPY currency pair continues trading at 108.61 and fluctuates between the range 108.04 to 108.75.

While the greenback picked up a bid and the U.S. dollar index hit the bullish levels since the 15 June, and from now will keep the eye on the 98 handles ahead of upcoming U.S. Gross Domestic Product and Federal Reserve interest rate decision later this week.

CPI (year/year) Jul came in at 0.9% (est 1.0%, prev 1.1%) and ex-fresh food (y/y) came in at 0.9% (est 0.8%, prev 0.9%.

The U.S. ten-year yields increased four-basis points to 2.084%, due to stronger U.S. durable goods orders data. On the flip side thee retail output and wholesale inventories unexpectedly increased. There is some chance that GDP growth will have reduced in data that will reveal Q2 advance Gross Domestic Product.


Daily Support and Resistance
S3 107.48
S2 107.8
S1 107.98
Pivot Point 108.12
R1 108.3
R2 108.44
R3 108.75

USD/JPY – Trade Tips

Considering the dollar bullish sentiment, I would like to stay bullish above 108.350 to target 108.900. All the best!


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