Home Daily Analysis Forex Market Overview Daily FX Brief, July 30 – Top Forex Trade Setups, BOJ Rate...

Daily FX Brief, July 30 – Top Forex Trade Setups, BOJ Rate Decision Released!

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A day before, the major U.S. stock indexes closed mixed, with the Dow Jones Industrial Average adding 28 points (+0.1%) to 27221. The S&P 500 eased 4 points (-0.2%) to 3020, and the Nasdaq Composite was down 36 points (-0.4%) to 8293.

Whereas, the U.S. Dollar Index edged closer to its year-to-date high, gaining 0
.1% on the day to 98.08 on Monday, as the British pound slumped on no-deal Brexit fears. Watch out the key economic events due for today…

Economic Events to Watch Today

 

 

EUR/USD – Daily Outlook

The EUR/USD pair upside still below the 1.1150 due to German and eurozone data. During the early Asian session, the EUR/USD currency pair touched the bullish track but still below the 1.1150 barriers due to all eyes now on the German and Eurozone macro headlines for the next activity.

The EUR/USD pair bottomed at 1.1101 with a subsequent recovery stalling around 1.1187. At 1.1175, the pair has the 23.6% retracement of the 1.1411/1.1101 decline, which makes of the 1.1170/80 price zone the first barrier to the upside. The 1.1100 figure, on the other hand, is the immediate support with a break below the level favouring a continued decline toward the 1.1020/40 price zone.


 

Daily Support and Resistance
S3 1.106
S2 1.1098
S1 1.1122
Pivot Point 1.1137
R1 1.116
R2 1.1175
R3 1.1213

EUR/USD – Trade Tips

Bullish movements above 1.1130 and bearish below the same until 1.1105 on the lower and 1.1160/75 on the upper side.

GBP/USD – Daily Outlook

The British pound plunged 1.3% to $1.2217, the lowest level since March 2017. U.K. Prime Minister Boris Johnson will not start a dialogue with European Union leaders until they agree to reopen negotiation over the previous withdrawal agreement, according to a government spokeswoman.

The GBP/USD currency pair hit the bearish track of the 28-months low to 1.2100 due to an increase in expectations of a no-Brexit deal. The Prime Minister of United Kingdom Boris Johnson was trying to overcome unfriendliness during his visit to Scotland, but unfortunately, first Minister of Scottish Nicola Sturgeon didn’t trust him. For now, the United Kingdom Prime Minister is probably planning for a war committee that will control the Brexit and developments.


 

Daily Support and Resistance
S3 1.1945
S2 1.2107
S1 1.2162
Pivot Point 1.2268
R1 1.2324
R2 1.243
R3 1.2591

GBPUSD is forming the third wave inside the downtrend; it has almost completed the wave, but taking into account that the price has broken 1.2240 without any corrections, it may continue trading inside the downtrend towards 1.2131. If the price forms consolidation ranges and breaks them to the downside, the instrument may boost its decline. Possibly, the pair may extend this descending wave down to 1.2055.

GBP/USD – Trade Tips

Considering the dollar bullish sentiment, I would like to stay bearish below 1.22008 to target 1.2013.

USD/JPY – Daily Outlook

The USD/JPY currency pair decline 108.70 as the BOJ refrained from modifying the current monetary policy. Today during the early Asian session, the USD/JPY currency pair hit the bearish market and trading at 108.68, due to no significant change in the Bank of Japan’s monetary policy.

The Bank of Japan’s monetary policy is still stable with the short term interest rate at -0.1% whereas maintaining Ten-year Japanese Government Bond yields target near 0%.

The policymakers of the Bank of Japan recently forced regarding easy monetary policy following the Prime Minister Shinzo Abe increased majority seats in the Upper House.

At the Sino-US trade front, risk sentiments continue to be stable as the international investors’ eyes on trade agreements between the United States and China. The US Ten-year Treasury yield holds constant near 2.065%.


 

Daily Support and Resistance
S3 108.07
S2 108.41
S1 108.62
Pivot Point 108.76
R1 108.97
R2 109.11
R3 109.45

USD/JPY – Trade Tips

I would like to stay bearish below 108.80 and bullish above 108.80 range. Whereas, buying is suggested on the bullish breakout of 108.900 resistance to target 109.400. On the lower side, 108.400 may provide a buying opportunity today. All the best!

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