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Daily FX Brief, June 24 – Top Trade Setups In Forex, Risk Off Sentiment!


On Monday, the dollar index plunged dramatically against the basket of six major currencies on the back of a weaker dollar. Greenback got most of the hit after the Federal Reserve released dovish monetary policy, opening room for monetary easing in upcoming meetings. That weighed on the dollar and in turn reinvigorated its counterparts like the euro, which has had troubles of its own including Italy’s debt problem and the possibility of the European Central Bank having to ease policy.

Economic Events to Watch Today


EUR/USD – Daily Outlook

The EUR/USD trades higher 200-day moving average before of German IFO survey. The pair EUR/USD is heading south before of essential German data release, having ended up the 200-day moving average on Friday.

The direct currency pair has been surging higher to 1.1380 above the 20, 25, and 50 periods moving average. The bullish trend is supported due to higher lows, higher highs pattern, an inverse head-and-shoulders breakout on the daily chart.

Hence, the way of least resistance is on the higher side as the pair is very likely to continue trading upward until 1.14 later today while the German IFO survey for June will be playing an important role if it comes out with a considerable divergence.

Daily Support and Resistance
S3 1.1176
S2 1.1233
S1 1.1264
Pivot Point 1.1291
R1 1.1321
R2 1.1348
R3 1.1405

Let’s keep an eye on 1.1335 as the pair may stay bullish and bearish below this level today.

GBP/USD – Daily Outlook

The GBP/USD rises to the multi-day top between notable USD weakness. GBP/USD also taking benefits like all the other major currency pairs, from the greenbacks across the board drops due to it makes the round to 1.2748 during starting Monday.

The cable increases to the 12-day peak as bulls go further away from the U.S. Dollar amid ongoing geopolitical tension between the U.S. & China. Besides, the political tussle between Iran and the U.S. escalates.

Daily Support and Resistance
S3 1.2588
S2 1.2645
S1 1.2675
Pivot Point 1.2702
R1 1.2732
R2 1.2758
R3 1.2815

The GBP/USD is facing a strong triple top resistance at $1.2760 and may take a bearish turn. Consider staying bearish below 1.2760 to target 1.2700. The next target is likely to be 1.2670 in case Sterling breaks below 1.2700 support.

AUD/USD – Daily Outlook

AUD/USD rises to 12-day high due to RBA’s Lower expects infrastructure investment to help the economy. The RBA continues to focus on global economic growth. The interest rate cut forecasts by the RBA Governers are likely to trigger a jump in infrastructure benefits. Eventually, the sentiment is keeping the Australian economy supported. AUD/USD pair grows to the 12-day high of 0.6950 during starting Monday.

On the other hand, continued weakness in the U.S. Dollar supported the Aussie to take its previous strength forward. Recent remarks from the Reserve Bank of Australia Governor Philip Lowe helped the quoted increase further.

Daily Support and Resistance
S3 0.6819
S2 0.6867
S1 0.6896
Pivot Point 0.6916
R1 0.6944
R2 0.6964
R3 0.7013

Looking at the chart above, Aussie is facing resistance around 0.6965, very near to 61.8% Fibonacci resistance level. Although the prices above 20, 25 and 50 periods EMA supports the bullish bias, right now Aussie dollar needs correction before it continues its bullish bets.

Consider staying bearish below 0.6965 and bullish above 0.6915. The breakout of this range may help us determine further moves in the market. All the best!


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