Home Daily Analysis Forex Market Overview Daily FX Brief, June 26 –Fed Powell Finally Support Dollar, Watch Out...

Daily FX Brief, June 26 –Fed Powell Finally Support Dollar, Watch Out Trade Setup!

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On Wednesday, the greenback surged from a three-month low as traders turned back expectations for competitive U.S. rate cuts. However, underlying belief the Federal Reserve will need to ease policy soon capped greenback bullish momentum.

Economic Events to Watch Today

EUR/USD – Daily Outlook

The Pair EUR/USD is having a bearish trend after to Fed officials pushed back on aggressive rate cut expectations. The pair EUR/USD is reaching below the critical support level at 1.1355, having formed a selling candlestick pattern on Tuesday as not so dovish remarks from the U.S. Federal Reserve officials dragged the pair down.

The U.S. Dollar mounted on a bid in the New York session after to the Federal Reserve officials break the expectations of a Fifty Basis point rate cut in July.

On the flip side, the U.S. Central Bank Chair Powell said the central bank is judging although a decrease in the borrowing cost is required.

As a result, EUR/USD sank 0.28%, incorporating the previous day’s high and low. On the daily chart, the pair has formed a bearish engulfing candle which is suggesting the potential for a selling trend or at least a retracement.

Daily Support and Resistance
S3 1.1238
S2 1.1306
S1 1.1336
Pivot Point 1.1374
R1 1.1404
R2 1.1442
R3 1.151

The EUR/USD is likely to face immediate support around 1.1350 and 1.1320, the 23.6% and 38.2% Fibonacci retracement levels. So consider staying bearish below 1.1375 today to target these levels.

GBP/USD Offers Progress After Carney’s Speech

The pair GBP/USD is trading slightly bearish around 1.2685. On Wednesday, the GBP/USD pair has crossed below the 20, 25 and 50 periods exponential moving average, mainly due to repeated Brexit worries and weaker data from the United Kingdom.

The C.B. Retail Sale surveys disappointed the market, driving bears for Sterling. The Realised Sales fell from -27 to -47, which is even worse for the British economy.

Additionally, the U.K. Prime Minister (PM) candidate Boris Johnson’s pledge to leave the E.U. on October 31, adds future pressure on Sterling.

Less than dovish remarks from the U.S. Federal Reserve policymakers also triggered the Cable’s current pullback; there is a little changed in cable trades near 1.2690 during early Wednesday. Summing up, the sluggish CBI data and hard-Brexit concerns are weighing on Sterling demand, keeping the GBP/USD pair bearish.


Daily Support and Resistance
S3 1.2491
S2 1.2603
S1 1.2645
Pivot Point 1.2715
R1 1.2757
R2 1.2827
R3 1.2938

Consider keeping an eye on 1.2660 as the GBP/USD can stay bullish and bearish below this level with an upper target of 1.2720 and bearish target of 1.2605. All the best!

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