Daily market analysis

JUL 06,2020

July 6, 2020

Market Focus

 

Investors continue to weigh signs that global economies are on the mend against relentless new outbreaks of the virus. US payrolls data Thursday fueled optimism of a V-shaped recovery in the world’s biggest economy.

Australia’s Retail Sales for May printed 16.9%, slightly above estimate of 16.3%, a big leap from previous -17.7%.  While China’s June month Caixin Services PMI grew past-49.9 expected and 55 prior to 58.4.

Market Wrap

Main Pairs Movement

Due to US Independence Day, liquidity was drained out in forex market, all major pairs were traded in tight range.

COVID-19 Data (EOD):

Technical Analysis:

 GBPUSD (H4)

Cable has broken its downward trend line from mid-June and bounced to challenge 38.2% Fibonacci at 1.253, but failed to advance beyond this level.  The bullish reversal may move ahead of itself, if price can retrace towards1.24 without breaching lower, then the current bullish run could be sustainable.

 

Resistance: 1.253, 1.267, 1.2788

Support: 1.24, 1.2268, 1.218

 

AUDUSD (H4)

Aussie is kept within a tight range, depressed liquidity from US Independence Day has added noise to price momentum. The near-term trend favors the bull as price sits comfortably in Bollinger’s upper region, but whether it could overcome resistance band of 0.6967 – 0.702 within the next few trading days remains questionable.

 

Resistance: 0.6967, 0.702, 0.712

Support: 0.6897, 0.6803, 0.6669

XAUUSD (H4)

Gold’s bullish bias is still intact and RSI shows price is far from overbought, which provides plenty space for the precious metal to climb. Bulls are looking over $1786 hurdle, and $1800 target remains a distinct possibility. On the flip side, failure to defend $1760 could result in a bearish reversal, which would possibly prompt some aggressive selling.

 

Resistance: 1786, 1819, 1836

Support: 1761, 1742, 1722

 

Economic Data

Currency

Data Time (TP) Forecast

Exposure

(Our side)

EUR

ECB President Lagarde Speaks 18:40

 

 

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