Intraday Forex Friday, July 23 (EURUSD, USDJPY, etc.) The dollar eases amid recovery in risk appetite.


Hi everyone. This observation is made around 6:10 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

The dollar is heading to end the week close to where it started following a roller-coaster week of shifting risk appetite over central banks and Delta variants news.
The market's focus now shifting to next week's U.S. Fed meeting.
Oil heads to end the week steady, while gold to decline after consecutive four weeks gain.

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  • The euro was unchanged from the opening on Friday, to trade at $1.177699, and on track to 0.30% weekly loss.​
  • It hit a 1-week high overnight, before slumped by a dovish tilt from the ECB when it pledged to keep interest rates at record lows for even longer.​
  • ECB President Lagarde downplayed inflation concerns when she said in the near-term, the significant slack in the economy is holding back inflationary pressures and the medium-term inflation outlook is well below the ECB's goal.​
  • EUR/USD maintained its losses after the Eurozone July consumer confidence indicator unexpectedly fell weaker than expectations, while the U.S. economic data was bearish for the dollar. U.S. weekly initial unemployment claims unexpectedly rose to a 2-month high.​
  • The dollar meanwhile has safe-haven support from concern the worldwide spread of the Delta COVID-19 variant will crimp the global economic recovery.​
  • Market's focus now shifting to next week's U.S. Fed meeting, where more discussion about tapering is expected, though Chair Jerome Powell has repeatedly said the labour market remains well short of target.​
  • The EUR/USD is floating back towards the support level as buyers appear to lack the appetite to facilitate a rally.​
Important Levels to Watch for:​
  • Resistance line of 1.18322 and 1.18607.​
  • Support line of 1.17402 and 1.17117.​

  • The U.S. dollar traded at 110.256 per yen, stronger than level below 109.06 seen against the Japanese yen earlier this week.​
  • The pair gains modestly during the week, less than 0.1%, with Japanese markets will remain closed amid an extended local holiday and softening mood during US trading hours.​
  • The rebound in U.S. T-note yields meanwhile sparked some strength in the dollar.​
  • With holiday in Japan and only U.S. manufacturing releases to take care of to end the week, the USD/JPY pair expected to hover rangebound, to little changed daily. However, the pair also seeing to be moving back towards the trendline, where we may expect to see buyers return to take price action back.​
Important Levels to Watch for Today:​
  • Resistance line of 110.391 and 110.536.​
  • Support line of 109.922 and 109.754.​
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