EURUSD saw large price movements as economic data from the U.S. and the E.U. were released. The shared currency enjoyed demand early in the trading day, but EURUSD could not hold on to gains as Germany published its July Factory orders, falling by 1.1% month over month and 13.6% year over year. The dismay economic data from Germany was exacerbated by the upbeat PMI data, which was released at the opening of the American trading session. The two key economic data sent EURUSD below the 0.99 level. The worse than expected Germany factory orders figure adds further concern to the E.U.’s economic outlook.
On the technical side, EURUSD has successfully defended our previous estimated support level of 0.9902; however, we do expect EURUSD to travel further lower to the 0.98 price region in the near future. RSI for the pair sits at 42.1, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1.0033, 1.0055, 1.0082
Support: 0.9902, 0.985
GBPUSD enjoyed early gains during the Asia trading session, as market participants embrace a new British Prime Minister. Prime Minister Liz Truss has promised to deal with the energy crisis and intends to cut taxes in order to grow the slowing economy. However, Cable lost ground as soon as the better-than-expected PMI figure was released during the American trading session. Market participants will now turn their attention to the BoE’s statement, scheduled during today’s European trading session. Despite Cable’s retreat, the British Pound has outperformed its G10 peers against the American Greenback.
On the technical side, we remain confident that the 1.1463 price level will support Cable in the short term. The short-term resistance level remains around the 1.1561 price region. RSI for Cable sits at 44.787, as of writing. On the four-hour chart, GBPUSD currently trades below its 5, 100, and 200-day SMA.
Resistance: 1.1561, 1.1854
After seeing a rise in Gold prices over the course of Monday’s trading, Gold has once again resumed its downward trend. The U.S. Greenback continues to be more attractive compared to the non-yielding precious metal. After the release of the U.S. non-manufacturing PMI, Gold entered a downwards spiral towards the $1700 per ounce price region. The rise in U.S. 10-year treasury yields has further added selling pressure on the yellow metal. The energy crisis and the price surge it accompanies have pulled market participants away from XAUUSD.
On the technical side, XAUUSD hit our previously estimated resistance level of $1724 per ounce and began retracing toward our estimated support level of around $1695 per ounce. RSI for Gold sits at 40.84, as of writing. On the four-hour chart, XAUUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1762, 1800
Support: 1688, 1695