Amega daily market overview & news alerts

[AmegaFX]

USDJPY overview 08.07.2021

USDJPY falls on weaker dollar.

USDJPY under the strong bearish pressure today – under the effect of the equally strong U.S. dollar bearishness and the yen bullishness as the reaction of the Benchmark U.S. yields hitting more than four-month low. The investors are dumping risky positions in currency markets in a broad-based unwinding by some hedge funds. This is a classic unwind of risky positions in currency markets with yield chasing trades reversing from current account deficit countries to surplus nations. The minutes of the U.S. Federal Reserve’s June policy meeting confirmed it was moving towards tapering its asset purchases as soon as this year, which is largely blamed for the selloff of the dollar and yen gains.

Expect sellers on upward corrections.

Next support to watch – 109.25

 

[AmegaFX]

AUDUSD 09.07.2021

Medium-termtrend: Bearish

The bear market is continuing. The price has already reached the target zone №1 0.74155-0.74065 and it has a potential to reach the target zone №2 0.73255-0.73165. The best prices to try to have a short position are the control resistance zone 0.75083-0.74993. In case of the price is fixed upper the control resistance zone the medium-term trend will be changed to the bull market and all short positions should be closed.

Trading recommendation:

It’s recommended to try to have a short position near the control resistance zone 0.75083-0.74993 (100 points from current minimum) with using the pattern «Head&Shoulders» at least on timeframe M15.

The control resistance zone is constructed from the current minimum. If this minimum changes by n points the zone should also be shifted n points down. The risk/reward ratio for every order should be at least 1/3.

All zones are constructed on the basis of data from the CME futures market.

 

[AmegaFX]

BRENT overview 09.07.2021

Oil rises as U.S. inventories decline.

Oil under the bullish pressure today as U.S. petroleum inventories have fallen below the pre-pandemic five-year average amid the oil consumption accelerating but crude producers being slow to respond to rising prices, signalling more supply is needed. This is fuelling the latest upward reversal in oil prices with demand reaching its highest since 2019 – according to the U.S. Energy Information Administration, indicating the increasing strength of the economy. Further gains will be dependent on the subsequent OPEC+ group decisions, which can be tempted to abandon output limits, and on the pace of the spread of the Delta variant. No significant news from both fronts should allow for further oil gain in the coming trading sessions.

Expect buyers on downward corrections.

Next resistance to watch – 74.20

 

[AmegaFX]

EURUSD 12.07.2021

Medium-termtrend: Bearish

The bear market is continuing. The price has already reached the target zone №1 1.18263-1.18175 and it has a potential to reach the target zone №2 1.17383-1.17285. The best prices to try to have a short position are the control resistance zone 1.18782-1.18694. In case of the price is fixed upper the control resistance zone the medium-term trend will be changed to the bull market and all short positions should be closed.

Trading recommendation:

It’s recommended to try to have a short position near the control resistance zone 1.18782-1.18694 (100 points from current minimum) with using the pattern «Head&Shoulders» at least on timeframe M15.

The control resistance zone is constructed from the current minimum. If this minimum changes by n points the zone should also be shifted n points down. The risk/reward ratio for every order should be at least 1/3.

All zones are constructed on the basis of data from the CME futures market.

 

[AmegaFX]

GOLD overview 12.07.2021

Gold dips on stronger dollar.

Gold under the bearish pressure today as a stronger dollar made gold more expensive for holders of other currencies and investors awaited U.S. inflation data and Federal Reserve Chairman Jerome Powell’s testimony this week. Gold market lost momentum after the U.S. Federal Reserve adopted a more hawkish stance, raising prospects for a rise in interest rates as early as 2023, and a tapering of its monetary stimulus. Gold traders will focus on a U.S. consumer price index report on Tuesday, and Powell’s testimony before Congress on Wednesday and Thursday for cues on the timeline for policy tightening. Short-term downward pressure on gold will be limited by an upsurge in new infections caused by the Delta coronavirus variant.

Next support to watch – 1795.00

 

[AmegaFX]

USDCAD 13.07.2021

Medium-term trend: Bullish

The bull market is continuing. The price has already reached the target zone №1 1.26089-1.25914 and it is going to the target zone №2 1.27862-1.27682. Any price reduction is considered like corrective. The best prices to try to have a long position are the control resistance zone 1.24180-1.24011. In case of the price is fixed below the control resistance zone the medium-term trend will be changed to the bear market and all long positions should be closed.

Trading recommendation:

It’s recommended to try to have a long position near the control resistance zone 1.24180-1.24011 (190 points from current minimum) with using the pattern «Head&Shoulders» at least on timeframe M15.

The control resistance zone is constructed from the current maximum. If this maximum changes by n points the zone should also be shifted n points up. The risk/reward ratio for every order should be at least 1/3.

All zones are constructed on the basis of data from the CME futures market.

 

[AmegaFX]

Watch out for the upcoming New Zealand Interest Rate Decision announcement and how could it affect NZDUSD pair.

 

[AmegaFX]

Watch out for the upcoming Bank of Canada Interest Rate Decision announcement and its impact on USDCAD & other CAD pairs.

 

[AmegaFX]

NZDUSD 14.07.2021

Medium-termtrend: Bearish

The bear market is continuing. The price has already reached the target zone №1 0.69150-0.69055 and it has a potential to reach the target zone №2 0.68200-0.68105. The best prices to try to have a short position are the control resistance zone 0.70216-0.70121. In case of the price is fixed upper the control resistance zone the medium-term trend will be changed to the bull market and all short positions should be closed.

Trading recommendation:

It’s recommended to try to have a short position near the control resistance zone 0.70216-0.70121 (100 points from current minimum) with using the pattern «Head&Shoulders» at least on timeframe M15.

The control resistance zone is constructed from the current minimum. If this minimum changes by n points the zone should also be shifted n points down. The risk/reward ratio for every order should be at least 1/3.

All zones are constructed on the basis of data from the CME futures market.

 

[AmegaFX]

GOLD overview 14.07.2021

Gold rises on inflation fears.

Gold under the bullish pressure today after strong U.S. inflation numbers increased the Gold appeal as an inflation hedge. The gains are still kept in check ahead of Federal Reserve Chair Jerome Powell’s testimony as early tapering bets rise. The biggest rise in U.S. consumer prices in 13 years has intensified investor focus on messaging from the Fed. On the one hand, gold is getting bought by inflation hedge, but on the other hand, rising market expectation for a rate hike at the end of next year is offsetting some of the price advances. A fed rate hike would dull bullion’s appeal as that increases the opportunity cost of holding the non-yielding metal.

Next resistance to watch – 1845.0