Daily market analysis

July 27, 2021
   

Daily Market Analysis

Market Focus

US markets were flat on Monday ahead of quarterly earning reports from several technology companies. The Dow Jones Industrial Averages climbed 82.76 points. The S&P 500 added 0.24% while the Nasdaq 100 closed with 0.03% higher. Notably, Tesla Inc. was among those companies providing the largest boost to the S&P 500. Tesla extended gains in the post market after the earning report beat the estimates. Later this week, several heavy weighted companies including Apple Inc., Amazon. com Inc., and Alphabet Inc. are going to propel the benchmark indices.

Bitcoin surged near $40,000 as the rumor over Amazon.com Inc.’s involvement in the currency industry. The furious up- surge was mostly driven by over- leveraged shorts. The surge on Monday brough markets back to life after the market has been stuck in the doldrums for months.

China’s new rules in private tutoring industry has left private education firms confronting a significant impact as Chinese government steps up regulatory oversight. Under the new regulation, all institutions offering tutoring service will need to be registered as non- profit organizations. With the new rule, it has put at risk billions of dollars of public and private capital ploughed into the educational sector. As a result, it triggered a massive sell off. China’s education industry sub- index dropped as much as 14% on Monday.

 

        

Main Pairs Movement:

As the greenback started with a soft tone, EURUSD climbed 0.30% on Monday, reaching an intraday high of 1.1816, closing with 1.18020. Cautious move took over the market ahead of the US first- tier economic report later this week.

GBPUSD edged higher, closing with 1.38187. The British Pound benefitted from last week’ reduction in the pandemic cases while the greenback had a softer tone. However, Brexit woes and cautious sentiment ahead of the week are still challenges for the pairs.

The precious metal, gold, retreated below $1800 as the markets embraced the week’s key data and firmer US Treasury bond yields. In the meantime, gold price would be vulnerable as the markets are going to guess the outcome of the FOMC meeting that will happen later.

       

Technical Analysis:

GBPUSD (4-hour Chart)

Sterling rises to one week fresh high near 1.3835, the highest level since July.16, then slip nearly market close at 1.3818. moreover, highs versus dollar, euro and yen as well. The DXY index fell by 0.36% as of writing, under 92.60 while U.S. 10 years Treasuries yields moved off lows. At the mean time, market is expecting risk appetite return as optimistic mood.

For technical aspect, RSI indicator close around 64 figure which suggest bull guideline extend recently momentum and expect market will heading to higher stage at least short term. For moving average side, 15 long SMA indicator continuing it ascending momentum while 60 long SMA indicator remaining a slightly upside but seems flat movement, furthermore the long and short one has golden cross.

On the south way, If market fell below the support level, we expect market will head to 1.3665.

Resistance: 1.3896

Support: 1.36, 1.3665, 1.3745

           

XAUUSD (4- Hour Chart)

Gold still dismay and struggle to get the upside traction at the start of the week. The gold was headed for the daily close below the psychological level $1800 at 1797 as end of day. Forthcoming day, investor will try to analyze the outcome of the FOMC meeting that kicks off on Tuesday and concludes with the Fed’s chairman press conference. From the technical perspective, RSI indicator settle at 40.8 figures as of writing, suggesting bearish movement ahead. For moving average side, 15 long SMA indicator shows slightly upper way and 60 long SMA remained flat.

In lights of aforementional, we expect gold market will high probability struggle in a consolidation range. To the downside, we expect 1795 will be powerful support. If market penetrate the first immediately support, it would move to lower lows which eye on 1765.5 level. On the up way, 1811 around shows price cluster resistance as first pivotal checkpoint.

Resistance: 1811, 1830.5

Support: 1795, 1765.5

              

EURUSD (4- Hour Chart)

Euro dollar pair hovered around 1.18 level after approaching at 1.1816 the highest peak in the day market. The strong euro dollar with positive intraday bias amid a weaker US dollar across the broad while US shares market is challenging record high. For technical side, RSI indicator set 58 figure suggesting a bull traction guidance for short term. For moving average perspective, 15 long SMA indicator moving in flat with modest momentum in reccent, but 60 long SMA remaining decending movement.

Following recently suggestion, euro dollar has stand above the 1.1804 level, a critical resistance level as price pattern. For now, the most important thing for euro fiber is to defend on current momentum. if price could propel to higher, than next price level would eye on 1.1848~1.188. On contrast, we expect 1.1804 become the short run pivot support. If market reverse to down way the first support, it would fall into quagmire between 1.1766 and 1.18040 as tiny volatility.

Resistance: 1.1848, 1.188

Support: 1.1804, 1.1766, 1.17

       

Economic Data

Currency

Data

Time (GMT + 8)

Forecast

USD

Core Durable Goods Orders (MoM)(Jun)

20:30

0.8%

USD

CB Consumer Confidence (Jul)

22:00

123.9