Home Daily Analysis Forex Market Overview Daily FX Brief, June 25 – Geopolitical Tensions Ruling Trade Setups, Watch...

Daily FX Brief, June 25 – Geopolitical Tensions Ruling Trade Setups, Watch Out!

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The U.S. dollar index slipped 0.1% on the day to 95.99 on Monday, stretching its falling streak to a 5th straight session, the longest one since August 2018. Traders are anticipating to see if anything comes of Sino-U.S. trade discussions later this week. The U.S. President Donald Trump is set to meet with at least eight world leaders at the G20 summit in Osaka, which includes China’s President Xi Jinping and Russian President Vladimir Putin.

Economic Events to Watch Today

 

 

EUR/USD – Daily Outlook

A day before, the euro surged 0.1% to $1.1400, placing a four-day rally. The German IFO Business Climate Index shifted to 97.4 in June (as expected) from 97.9 in May.

On Tuesday, the EUR/USD is showing a bullish behaviour for the fifth straight day before of Fed speak later today. The pair EUR/USD is continuously increasing and extending the four-day winning streak with the offering U.S. Dollar from the markets amid a jump in the precious metal gold value.

At the moment, the EUR/USD pair is trading at $1.1408 having witnessed an upward breakout on technical charts earlier this week.

The pair is trading at 1.1408, touched the highest level since March 21, having noticed a bullish breakout on technical charts earlier this week.

According to technical charts, the pair EUR/USD coming move toward 1.16, can say that the pair will likely gather movement if the U.S. Federal Reserve’s (Fed) Chairman Powell will give the strong expectation about the rate cut.

 

Daily Support and Resistance
S3 1.1328
S2 1.136
S1 1.1379
Pivot Point 1.1391
R1 1.141
R2 1.1423
R3 1.1455

GBP/USD – Daily Analysis

Unlike other forex pairs, the GBP/USD is consolidating in the tight trading range of 1.2700 – 1.1760 as the U.K. Parliament member candidate Boris Johnson gave a commitment to leave the European Union (E.U.) on October 31 signalling no deal Brexit.

The GBP/USD pair investors fell slightly but remained supported on the back of weaker U.S Dollar. Sort of neutral trend is still prevailing in the cable.

GBP/USD trades around about 1.2740 at the beginning of the Asian session on Tuesday. In short, No-deal Brexit worries take over the Cable’s latest rise led by the greenback decline.

On the flip side, most of the major currencies got benefited from the greenback’s latest slid triggered after the Federal Open Market Committee signalled interest rate cuts this month.

The British Pound (GBP) withdrew from substantial bullish bias on Monday as pessimism surrounding the hard Brexit if Mr Johnson comes, who will be chosen for U.K. prime minister post.

Daily Support and Resistance
S3 1.2613
S2 1.2674
S1 1.2704
Pivot Point 1.2736
R1 1.2766
R2 1.2797
R3 1.2859

AUD/USD – Daily Analysis

The pair AUD/USD resumes trading day at 0.6965, largely without much changes as the market awaits G20 summit this week. The Aussie is also getting huge impact over the sentiments that people’s bank of China has the opportunity to cut the reserve element ratio and can deliver targets or across the board rate cuts in June or July.

In case you are wondering, how China can impact the Australian dollar?
Well, China is Australia’s largest trading partner, and Australia is the best source of resource for China. Thus, the slowdown in China has a very negative impact on Australia’s economy.

Until now, the Australia dollar has failed to pick a strong buying, possibly probably because of the investors’ eyes on the low probability of the U.S. and China reaching a trade deal.

Daily Support and Resistance
S3 0.6908
S2 0.6933
S1 0.6949
Pivot Point 0.6959
R1 0.6975
R2 0.6985
R3 0.701

Aussie may face immediate resistance at 0.6983, the 78.6% Fibonacci retracement level. While support stays around 0.6925. Consider staying bearish below 0.6985 today.

All the best!

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