26 July 2023 Afternoon Session Analysis
EUR extended its losses due to recession fear on worse economic data.
European dollar (EUR), which was widely traded by global investors, slumped after the recent economic data disappointed the investors and raised the market recession fear. According to the Ifo Institute for Economic Research, the Germany Ifo Business Climate Index decreased to 87.3 from 88.6, below the market forecast of 88.0. Besides that, the recent PMI data released by all European country included French, Germany, and European has disappointed investors. These PMI data from each sector and each country were below the previous market forecast, which represented the sign of slowing down in the entire Europe’s manufacturing sector. Also, it is noteworthy to highlight that the Germany and French are both the largest countries in Europe but both country’s economic conditions were underperformed, which made investors lost their confidence toward the prospect of Europe’s economy. These data would probably cause shifting stances amongst ECB’s hawkish members, but market participants still expect European Central Bank (ECB) will raise interest rates in the coming Thursday. Although inflation has decreased, but it is still remains above the target of 2%. As of writing, EUR/USD dropped -0.05% to 1.1045.
In the commodities market, crude oil prices dropped -0.34% to $79.30 per barrel due to the API weekly crude oil stocks has increased and above the market forecast. Besides, gold prices dropped -0.05% to $1963.80 per troy amid the strengthening of US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Statement
(27th)
02:30 USD FOMC Press Conference
(27th)
Today’s Highlight Economic Data
| Time | Event | Previous | Forecast | Actual |
| 20:00 | USD – Building Permits | 1.496M | 1.440M | – |
| 22:00 | USD – New Home Sales (Jun) | 763K | 727K | – |
| 22:30 | USD – Crude Oil Inventories | -0.708M | -2.400M | – |
| 02:00
(27th) |
USD – Fed Interest Rate Decision | 5.25% | 5.50% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher after it breakout the previous resistance level at 100.80. MACD which illustrated increasing bullish momentum suggests the index to extend its gains toward the resistance level at 101.55.
Resistance level: 101.55, 102.35
Support level: 100.80, 99.80
GBPUSD, Daily: GBPUSD was traded higher following the prior breakout above the previous resistance level at 1.2835. MACD which illustrated decreasing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.3000.
Resistance level: 1.3000, 1.3180
Support level: 1.2835, 1.2670
EURUSD, Daily: EURUSD was traded lower following the prior breakout below the previous support level at 1.1185. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward the support level at 1.1010.
Resistance level: 1.1185, 1.1355
Support level: 1.1010, 1.0835
USDJPY, Daily: USDJPY was traded lower following the prior retracement from the resistance level at 141.90. However, MACD which illustrated increasing bullish momentum suggest the pair to undergo a technical correction in short term.
Resistance level: 141.90, 142.90
Support level: 140.25, 138.70
AUDUSD, Daily: AUDUSD was traded higher while testing the resistance level at 0.6785 MACD which illustrated increasing bearish momentum suggests the pair to undergo technical correction in short term.
Resistance level: 0.6785, 0.6880
Support level: 0.6695, 0.6595
NZDUSD, Daily: NZDUSD was traded higher following the prior rebound from the support level at 0.6160. MACD which illustrated decreasing bearish momentum suggests the pair to extend its gains toward the resistance level at 0.6280.
Resistance level: 0.6280, 0.6380
Support level: 0.6160, 0.6055
USDCAD, Daily: USDCAD was traded flat above the support level at 1.3110. MACD which illustrated increasing bullish momentum suggests the pair to extend its gains toward the resistance level at 1.3295
Resistance level: 1.3295, 1.3435
Support level: 1.3110, 1.2975
USDCHF, Daily: USDCHF was traded lower following the prior retracement from the resistance level at 0.8710. However, MACD which illustrated increasing bullish momentum suggests the pair to undergo technical correction in short term.
Resistance level: 0.8710, 0.8855
Support level: 0.8545, 0.8360
CrudeOIL, Daily: Crude oil price was traded higher following the prior breakout above the previous resistance level at 77.25. MACD which illustrated increasing bullish momentum suggests the commodity to extend its gains toward the resistance level at 79.70.
Resistance level: 79.70, 82.55
Support level: 77.25, 73.75
GOLD_, Daily: Gold price was traded lower following the prior breakout below the previous support level at 1971.40. MACD which illustrated diminishing bullish momentum suggests the commodity to extend its losses toward the support level at 1940.20.
Resistance level: 1971.40, 2003.60
Support level: 1940.20, 1910.80