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Daily FX Brief, July 29 – Top Forex Trade Setups, Big Week Begins!

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By all counts, the US dollar raised versus G10 currencies last week, edged up 0.86% according to the broad US dollar index. Optimistic durable goods orders on Thursday, followed by better-than-forecasted US GDP data Friday with advance figures seeing the economy expanding at an annualized 2.1% vs 1.8% forecasted, lifted the dollar index to highs set beyond 98.00.

The current week is fully loaded with top tier economic events such as monetary policy data from BOE, BOJ, FED and NFP data from the United States. Here’s what to expect from the market…

Economic Events to Watch Today

 

 

EUR/USD – Daily Outlook

The EUR/USD currency pair continues steady above 1.1100 due to a Bib week. The EUR/USD currency pair fluctuates near the flat line around 1.1130 level, strengthening fall of last weeks, as the market continued to weaken as the key FOMC, U.S. payrolls data, and Eurozone flash GDP which is due on next week.

In short, the EUR/USD currency pair pulled down due to the U.S. Dollar strength, whereas the Eurozone economic slowdown concern weights on Euro.

The position manages to hold on above the 1.11 handle, but on the other hand, bias continued to hit the bearish level just due to US-Eurozone macroeconomic change.

Besides, another reason behind the bearish pressure on the shared currency is the increasing US-German 10-year yield differential, an such as the European Central Bank hinted last week that it is probably to cut rates deeper in September.


Daily Support and Resistance
S3 1.1055
S2 1.1092
S1 1.111
Pivot Point 1.1129
R1 1.1147
R2 1.1167
R3 1.1204

EUR/USD – Trade Tips

Bullish movements above 1.1140 and bearish below the same until 1.1085 on the lower and 1.1160/75 on the upper side.

GBP/USD – Daily Outlook

The GBP/USD currency pair on a selling mode as bears dominate amid Brexit/political fears. During the early Asian session, the GBP/USD currency pair hit the bearish track of 0.1% to 1.2370. The GBP has dropped now more than 5% against the USD since May due to the concerns of a no-deal Brexit. No-deal Brexit concern continues weighing on the GBP/USD currency pair.

The figure of the pair has been continuously turned to the downside due to expectations of no Brexit deal after hard Brexiteer Boris Johnssiin recently won the elections and became a Prime Minister of the UK.


 

Daily Support and Resistance
S3 1.2257
S2 1.233
S1 1.2356
Pivot Point 1.2403
R1 1.2429
R2 1.2476
R3 1.2549

GBP/USD – Trade Tips

Considering the dollar bullish sentiment, I would like to stay bearish below 1.2403 to target 1.2303.

USD/JPY – Daily Outlook

The USD/JPY currency pair dropped ahead of trade talks and the Federal Reserve. The USD/JPY currency pair dropped 0.1% as the Bank of Japan is expected to keep rates stable. Governor Haruhiko Kuroda’s briefing would be eyed today to have further clues about the upcoming interest rates.

The USD/JPY currency pair has begun trading on the backfoot and touched the 20, 25 and 50-day moving average around 108.450 to bounce off towards 108.750.

In case you are wondering what’s causing a bullish bias in USD/JPY is the sentiments that Federal Reserve may/or may not cut the interest rates this week, especially after having a better than expected growth of 2.1% GDP.

Besides, all eyes will be on the United States and China’s discussions; there seems to doubt surrounding the event while it will probably contribute to a higher Japanese yen.


 

Daily Support and Resistance
S3 108.22
S2 108.46
S1 108.57
Pivot Point 108.7
R1 108.81
R2 108.94
R3 109.18

USD/JPY – Trade Tips

Considering the mixed dollar sentiment, I would like to stay bearish below 108.800 and bullish above 108.350 range. Whereas, buying is suggested on the bullish breakout of 108.800 resistance to target 109.100. All the best!

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