Home Forex Forex Market Analysis Daily Market Update: RBA Remains Rates On Hold, German Politics Eased

Daily Market Update: RBA Remains Rates On Hold, German Politics Eased

27
0

 


News Commentary


 

 

Trade tensions remain on fire as the U.S. government has blocked China Mobile from offering services to the U.S. telecommunications market, recommending its application be declined.

“We urge the relevant side in the United States to abandon Cold War thinking and zero-sum games.” Said the Chinese foreign ministry spokesman Lu Kang

That move by U.S. President Donald Trump’s administration comes amid growing trade tensions between the two countries. The U.S. is probably set to impose tariffs on $34 billion worth of goods from China on Friday, which Beijing is expected to respond to with tariffs of its own, to remain in a tit for tat circle.

 

The euro has been supported as political risk in Germany calmed, after Chancellor Angela Merkel reached a deal on immigration policy with coalition partners, resolving a row that had put into doubt the future of the government.

 

The Reserve Bank of Australia left interest rates steady at 1.5%. The statement had come to a rather neutral to dovish tone as it declared inflation is likely to remain slow for some time, wage growth also remained slow and household consumption remains a source of uncertainty.

The statement came similar to the June statement with main data remaining the same as well as the tone.

 

Trading is expected to be thin ahead of the U.S. independence day holiday, with markets closing early at 17:00 GMT.

 


Chart Analysis


 

 

USD INDEX

As we expected on the daily chart, the price had reached the key resistance at 95.5 and bounced back from it, powered by divergence on RSI.

The price also had shaped a reversal double top pattern.

So, the index is supposed to get back down to the support zone of 93.2-92.6 again, then start its journey to the C wave.



 

 

USD/JPY

On the daily chart, the pair retested the key resistance 111.1 again and the descending trend from the high of 2017.

So, any bounce here will lead the price to the first support of 108.15.



 

 

AUD/USD

On the daily chart, the price has reached the support zone of 0.7325-0.7365

The pair is supposed to find some breath powered by divergence on RSI to reach the key resistance of 0.7515, where the descending trend from the high of February is located.



 

 

AUD/JPY

As we expected before, the price has reached the support zone 81.2-80.5 as the price is moving sideways.

So, the price is expected to retest the head of the pattern to again reach the levels of 84-84.4.



 

 

CAD/JPY

On the daily chart, as we expected, the price has risen from the support of 81.15, near the green support zone.

The pair bounces with two engulfing bars from the 78.6% Fibonacci level.

A Gartley harmonic pattern has been shaped at these same levels, with an oversold area on RSI.

All these factors enhance the continuation of bullish movement to reach firstly the resistance at 85.5, then the retest at 86.95



LEAVE A REPLY

Please enter your comment!
Please enter your name here