Market Talk– The US dollar fell from recent highs on Thursday after Federal Reserve Chair Jerome Powell told Congress that the US economy was still “a long way off” from the levels the central bank desired before reducing monetary support.
– Powell spoke before the Financial Services Committee of the United States House of Representatives, saying that soaring inflation appeared to be linked to the Fed’s activities, that acting prematurely to temper it would be a mistake, and that halting bond purchases was “still a ways off.” Powell believes the recent price spikes will subside. – China’s economic statistics was substantially more stable than expected. Retail sales, industrial output, and fixed investment growth all slowed in June, although not as much as expected, leading to speculation that policymakers will do more to assist the recovery. The euro rose to 1.1826 from a three-month low of 1.1772 on Wednesday. The dollar sank from a one-week high of 110.69 yen to 109.84 yen Wednesday night, while Sterling fell to 1.3836.
– Gold hit a one-month high of $1,829.8 per ounce as US Federal Reserve Chair Jerome Powell reassured investors that the central bank will maintain its accommodative monetary policy despite rising inflation readings.
Chart NZD/USD (Focus) Points to Remember 1. Buy the New Zealand dollar against the US dollar. 2. Purchase the NZD/USD at 0.7010. Stop at 0.6980 and go for 0.7095 as your aim. 3. The NZ dollar is expected to benefit from a divergence in tapering decisions. 4. With MACD and 20EMA bullish, a drop to the neckline of a Double Bottoms chart pattern presents a purchasing opportunity.
Fundamental Remarks1. Powell’s remark that tapering is “still a ways off” is anticipated to put downward pressure on the US currency.
2. The Reserve Bank of New Zealand’s decision to stop tapering is expected to help the New Zealand dollar.
1. The price formed a Double Bottoms chart pattern, and a pullback to the neckline presents a purchasing opportunity.
2. Both the MACD and the 20EMA are bullish, indicating a bullish price trend.
Levels of importance
Support0.70050.69600.6920
Resistance0.70450.70800.7115
Overview of the Technology
USD/JPY (United States Dollar/Japanese Yen) On Wednesday, price reached a high of 110.69, forming an Evening Star candlestick price pattern on the 4-hourly chart. This is a harbinger of a price high and a potential trend reversal to come. Price has dropped to a low of 109.81 this morning, and we predict it to drop even more to 109.55, which was the previous low. Although the stochastic is approaching the oversold zone, the MACD is turning bearish. A bearish price trend is also indicated by the 20EMA.
Support
109.55109.20108.80
110.05110.35110.70EUR/USD – Resistance The price may have hit a low of 1.1772 on Wednesday, but it has since risen to 1.1835 this morning. Given that price has risen over 1.1820, we can expect a price move up to 1.1885 today to test the neckline of the Double Bottoms chart pattern. The Stochastic indicator is rising, indicating a bullish price trend, while the MACD indicator is still bearish. 20EMA is a neutral value.
Support1.18101.17701.1735
GBP/USD:1.18451.18851.1915GBP/USD:1.18451.18851.1915GBP/USD:1.18451.18851 Yesterday, we recommended selling this pair at 1.3840. However, price has risen above our stop at 1.3875, resulting in a 35-pip loss. This morning, the price hit a low of 1.3820, and Stochastic has a positive crossover in the oversold zone. This could indicate that the price decrease is coming to an end and that a price rally is on the way. A bullish crossover of the MACD is also expected, indicating a positive price trend ahead. Price is expected to rise to 1.3895, the previous high.
Support1.38201.37901.3755
Resistance1.38651.39101.3955XAU/USD – Yesterday, price broke over the upper end of its range at $1818.25, and it has since moved to $1832.30 at the time of writing. We believe the price rally will go higher to $1845 in the coming days. The stochastic is overbought, but the MACD is positive. The 20EMA is pointing to a strong bullish trend in the near future. A dip below $1818.25 risks a resumption of the price range movement.
Support1818.251805.001791.50
1832.651844.501853.15AUD/USD — On Monday, we issued a sell advice for this pair at 0.7480, which was filled when the price surged to 0.7502. We suggested yesterday that you hold your stop around 0.7505 and your profit goal at 0.7395. Price has fallen to a low of 0.7430 before bouncing back to 0.7500. We believe this position will be stopped out because both Stochastic and MACD have reversed, indicating a bullish price trend ahead.
Support0.74750.74400.7405
Resistance0.75050.75350.7565
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