Spreads
Spreads
Spreads
Spreads
Spreads
The EUR/USD pair declined on Wednesday, extending its previous day’s slide and refreshed its daily low below the 1.013 mark in the early US session after the release of upbeat US ISM Services PMI data. The pair is now trading at 1.01282, posting a 0.37% loss daily. EUR/USD stays in the negative territory amid a stronger US dollar across the board, as the tensions between the US and China remain after US House Speaker Nancy Pelosi left Taiwan during the European morning. China has planned military exercises around Taiwan for the next three days. Meanwhile, the US ISM Services PMI also came in higher than expected at 56.7 in July, which lend support to the greenback. For the Euro, the dismal Eurozone Retail Sales data weighed on the shared currency, as the report showed that Eurozone’s Retail Sales fell by 1.2% MoM in June.
For the technical aspect, the RSI indicator is 38 figures as of writing, suggesting that the downside is more favoured as the RSI stays below the mid-line. As for the Bollinger Bands, the price witnessed heavy selling and dropped toward the lower band, therefore the bearish momentum should persist. In conclusion, we think the market will be bearish as the pair is heading to test the 1.0111 support line. The falling RSI also reflects bear signals.
Resistance: 1.0221, 1.0287, 1.0438
Support: 1.0111, 0.9991
The GBP/USD pair dropped on Wednesday, failing to preserve the upside traction that was witnessed in the first half of the day and touched a daily low near the 1.210 mark amid renewed US dollar strength. At the time of writing, the cable stays in negative territory with a 0.41% loss for the day. A combination of factors continued to help the safe-haven greenback to find demand, as recession fears and US-China tensions both undermined the market sentiment. For the British pound, the currency came under bearish pressure today as the data from the UK revealed that the business activity in the service sector expanded at its weakest pace in 17 months. The Services PMI declined to 52.6 in July and missed the market’s expectations.
For the technical aspect, the RSI indicator is 44 figures as of writing, suggesting that the pair is facing bearish pressure as the RSI indicator continues to move south. For the Bollinger Bands, the price also gained downside traction and touched the lower band, indicating that the pair is surrounded by bearish momentum. In conclusion, we think the market will be bearish as the pair tests the 1.2115 support line. On the upside, a break above the 1.2198 resistance line could favour the bulls and lead to additional gains toward 1.2277.
Resistance: 1.2198, 1.2217, 1.2317
Support: 1.2115, 1.2039, 1.1940
Despite the US dollar capitalising again on Wednesday versus G10 currencies amid rising US 10-year Treasury yield, the pair USD/CAD failed to climb higher and dropped to a daily low below 1.284 level in the late European session. USD/CAD is trading at 1.2869 at the time of writing, losing 0.09% daily. The market focus now shifts to July’s Nonfarm Payrolls report this Friday after the upbeat US Services PMI data showed that the business activity expanded at a more robust pace. On top of that, the falling crude oil prices failed to lift the USD/CAD pair higher as WTI slipped back towards the $92 per barrel area. The latest news showed that OPEC+ have agreed to raise the oil output by 100,000 barrels per day in September.
For the technical aspect, the RSI indicator is 54 figures as of writing, suggesting that the upside is more favoured as the RSI stays above the mid-line. For the Bollinger Bands, the price regained upside strength and rebounded from the moving average, therefore a continuation of the upside trend could be expected. In conclusion, we think the market will be bullish as the pair might head to re-test the 1.2891 resistance line. A break above that level could confirm the bullish bias and lift the pair higher toward 1.2944.
Resistance: 1.2891, 1.2944, 1.2986
Support: 1.2823, 1.2785
