FOREX INVESTORS BUZZ WORD MAJOR CURRENCY PAIRS 7.11.17
A DAILY SOCIAL TRADING EVENT
FOREX INVESTORS BUZZ MAJOR CURRENCY PAIR 7.11.17 This morning, the greenback is trading higher against most of the major currencies, ahead of US JOLTs job openings and wholesale inventories data, both slated to release in a few hours. Meanwhile, the US NFIB small business optimism index declined more-than-expected in June.
The EUR is trading a tad lower against the USD. In economic news, data indicated that Italy’s seasonally adjusted industrial production grew at its fastest pace in 3 months on a monthly basis in May.
The GBP is trading higher against the USD. Going forward, investors will closely monitor Britain’s ILO unemployment rate data, slated to release tomorrow.
The AUD gained ground against the USD, after the NAB report showed that Australia’s business conditions improved to its highest level in nearly 10 years in June, indicating that businesses were much more confident about the nation’s growth prospects. Additionally, the nation’s business confidence increased in June. Meanwhile, the nation’s seasonally adjusted home loan approvals rebounded less-than-expected in May.
Yesterday, the greenback traded lower in the New York session, against the key currencies. Macroeconomic data revealed that the US labor market conditions index declined more-than-expected in June. On the contrary, the nation’s consumer credit surged to a 6-month high in May.
MAJOR CURRENCY PAIR 7.11.17
This morning at 09:40 GMT, the EUR is trading at 1.1394 against the USD, a tad lower from the New York close. In economic news, Italy’s industrial production rose more-than-expected on a monthly basis in May. This morning, the pair traded at a high of 1.1400 and a low of 1.1383. The Euro traded marginally higher against the US Dollar in the New York session yesterday, with the pair closing the session at 1.1397. The pair is expected to its find support at 1.1381 and its first resistance at 1.1407.
As the single currency has retreated after faltering below resistance at 1.1446, suggesting consolidation below this level would be seen and pullback to 1.1355-60 cannot be ruled out, however, reckon support at 1.1312 would limit downside and bring another rise later, above said last week’s high at 1.1446 would confirm recent upmove has resumed for headway to 1.1475-80 but price should falter below 1.1500.
In view of this, we are looking to buy euro on dips but one should exit on subsequent rally. Below said support at 1.1312 would abort and signal top has been formed at 1.1446, bring retracement of recent rise to 1.1292 (previous support as well as 50% Fibonacci retracement of 1.1139-1.1446), then towards 1.1270.
At 09:40 GMT, the pair is trading at 1.2919, with the Pound trading 0.3% higher against US Dollar from the New York close. Overnight data revealed that Britain’s BRC retail sales across all sectors rebounded more-than-expected on an annual basis in June. The pair witnessed a high of 1.2927 and a low of 1.2870 during the session. Yesterday, the Pound traded slightly higher against the US Dollar in the New York session and ended at 1.2880. Immediate downside, the first support level is seen at 1.2874, while on the upside, the first resistance level is situated at 1.2946.
The British pound has slipped again after meeting renewed selling interest at 1.2984 and broke below previous support at 1.2893, suggesting top has been formed at 1.3030, hence consolidation with downside bias remains for retracement of recent upmove and weakness to 1.2850, then 1.2830-35 (50% Fibonacci retracement of 1.2640-1.3030) but reckon 1.2789-94 (61.8% Fibonacci retracement and previous support) would hold from here.
In view of this, would not chase this fall here and would be prudent to stand aside for now. Above 1.2920-25 would brig recovery to 1.2950 but only break of 1.2984 would signal the pullback from 1.3030 has ended, bring subsequent retest of this level possibly next week.
This morning, at 09:40 GMT, the US Dollar is trading at 114.31 against the Yen, 0.22% higher from the New York close. Earlier today, data indicated that Japan’s flash machine tool orders advanced in June. During the session, the pair traded at a high of 114.48 and a low of 114.04. Yesterday, the US Dollar traded 0.08% lower against the Yen in the New York session and ended at 114.06. The pair is expected to its find support at 114.04 and its first resistance at 114.53.
Although the greenback has risen again and broke above resistance at 113.69 and initial upside risk remains for recent upmove to extend gain to 114.00, loss of momentum should prevent sharp move beyond 114.25-30 and reckon 114.50-55 would hold from here, risk from there has increased for a retreat to take place later.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below the Kijun-Sen (now at 113.49) would bring pullback to 113.10-15 but only break of support at 112.74-88 would signal top is formed, bring correction of recent rise to 112.60, then 112.40.
The US Dollar is trading at 0.9685 against the Swiss Franc at 09:40 GMT this morning, 0.27% higher from the New York close. Amid no major economic releases in Switzerland today, investor sentiment will be governed by global macroeconomic events. The pair traded at a high of 0.9688 and a low of 0.9658 this morning. Yesterday, the USD traded 0.11% lower against the CHF in the New York session and ended at 0.9659. The pair is expected to its find support at 0.9661 and its first resistance at 0.9699.
Although the greenback has rebounded in NY morning, reckon upside would be limited to 0.9675-80 and risk of another retreat cannot be ruled out, below support at 0.9598 would bring weakness to 0.9560-65, however, reckon last week’s low at 0.9552 would limit downside and bring another rebound later to resistance at 0.9688, break there would signal low has been formed at 0.9552, bring retracement of early decline to 0.9700 and later towards resistance area at 0.9738-43.
In view of this, we are inclined to buy dollar on subsequent fall. Below said support at 0.9552 would signal recent decline has resumed instead, then weakness to 0.9520-25 would follow but reckon 0.9500 would hold on first testing.
The pair is trading at 1.2915 at 09:40 GMT this morning, with the USD trading 0.19% higher against CAD from the New York close. Going ahead, traders will look forward to Canada’s housing starts data, scheduled to release in a few hours. The pair traded at a high of 1.2916 and a low of 1.2885 this morning. The US Dollar declined against the Canadian Dollar in the New York session yesterday, closing 0.14% lower at 1.2890. The pair is expected to its find support at 1.2880 and its first resistance at 1.2942.
As the greenback has fallen again after brief recovery, suggesting recent selloff from 1.3794 top (wave c of larger degree wave b top) is still in progress and bearishness remains for further decline to 1.2870, then 1.2850, however, loss of downward momentum should prevent sharp fall below 1.2800, risk from there has increased for a rebound to take place later.
In view of this, would not chase this fall here and would be prudent to sell the pair again on recovery as 1.3010-15 should limit upside. Above 1.3070-75 would defer and suggest low is formed, bring a stronger rebound to 1.3115-20 and possibly towards previous support at 1.3165 (now resistance) but only break there would signal a temporary low is formed instead, then test of another previous support at 1.3212.
The pair is trading at 0.7613 at 09:40 GMT this morning, with the Australian Dollar trading 0.08% higher against US Dollar from the New York close, after Australia’s NAB business conditions and confidence index advanced in June. This morning, the pair traded at a high of 0.7627 and a low of 0.7603. The Australian Dollar traded 0.18% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7607. The pair is expected to its find support at 0.7592 and its first resistance at 0.7630.
Although aussie found support at 0.7571 and recovered, if our view that top has been formed at 0.7712 is correct, upside should be limited to 0.7650-60 and bring another retreat later, below said support at 0.7571 would add credence to this view, bring retracement of recent rise to 0.7535 support, break there would extend further fall towards 0.7500 which is likely to hold from here..
In view of this, we are looking to sell aussie on recovery as 0.7650 should limit upside. Above 0.7683 resistance would abort and suggest the retreat from 0.7712 has ended instead, bring retest of this level first, then towards 0.7750.
Gold is trading at $1210.40 per ounce at 09:40 GMT this morning, 0.24% lower from the New York close. This morning, the precious metal traded at a high of $1215.60 per ounce and a low of $1208.70 per ounce. Yesterday, gold traded 0.32% higher in the New York session and closed at $1213.30 per ounce, amid a broad weakness in the greenback. Immediate downside, the first support level is seen at $1206.07 per ounce, while on the upside, the first resistance level is at $1215.17 per ounce.
Gold is currently trading around $1,210 per troy ounce. During Monday’s session it fell to $1,204.45, the lowest level since March 15. Several factors are weighing on the price, including the rising interest rate environment where the U.S. Federal Reserve’s hawkishness has pushed up the dollar, which consequently puts pressure on the dollar-denominated metal.
However, inflation in the U.S. may prove beneficial for gold, according to Nitesh Shah, commodities strategist at ETF Securities. Gold is traditionally seen as a hedge against inflation.
The Silver Price opened Lower on Tuesday July 11precious metal is trading at $15.48 per ounce at 09:40 GMT this morning, 0.93% lower from the New York close. During the session, silver traded at a high of $15.68 per ounce and a low of $15.43 per ounce. In the New York session yesterday, silver rose 2.16% and closed at $15.62 per ounce, tracking gains in gold prices. Immediate downside, the first support level is seen at $15.22 per ounce, while on the upside, the first resistance level is at $15.72 per ounce.
Silver markets had a volatile session on Monday as we initially fell, but found enough support near the $15.20 level to find the market bouncing towards the $15.60 level. Ultimately, I believe that the market continues to go higher, looking for the $16 level. Either way, I don’t have any interest in buying this market, as the US dollar has been strengthening overall, and there are a certain number of influential factors working against precious metals overall. I believe that the $16 level will be a massive resistance barrier that the market will not be a will to break. I still believe that we are reaching towards the $15 level longer term which is a much more significant level on the longer-term charts.
The commodity is trading at $44.29 per barrel at 09:40 GMT this morning, 0.4% lower from the New York close. Crude oil witnessed a high of $44.91 per barrel and a low of $44.09 per barrel during the session. In the New York session yesterday, crude oil rose 1.21% to close at $44.47 per barrel, amid news that Libya and Nigeria have been invited to join OPEC’s meeting later this month to discuss capping their surging crude output. Immediate downside, the first support level is seen at $43.66 per barrel, while on the upside, the first resistance level is at $44.92 per barrel
Overnight, crude futures settled higher on Monday, but sentiment on oil remained negative as fears grew that rising output from the United States, Nigeria and Libya would continue to weigh on Opec and its allies’ efforts to rein in supply.
Oil prices shrugged off negative sentiment to settle higher, despite a recent string of comments from analysts warning that growing non-Opec supply would continue to limit Opec and its allies’ pact to curb production.
“The simple truth is that OPEC and Russia have to contend with the fact is that there is output growth elsewhere diluting their efforts at reducing supply,” the bank said in a note.
FOREX INVESTORS BUZZ
The seasonally adjusted industrial production in Italy climbed 0.70% in May on a monthly basis, higher than market expectations for a rise of 0.50%. In the previous month, industrial production had registered a revised drop of 0.50%.
The flash machine tool orders in Japan recorded a rise of 31.10% on a YoY basis, in June. Machine tool orders had climbed 24.50% in the previous month.
In June, the business conditions index recorded a rise to 15.00 in Australia, compared to a revised reading of 11.00 in the previous month.