Forex Market Watch 08 July 2024 – 11 July 2024

Forex Market Watch 08 July 2024 – 11 July 2024

Article by: ETO Markets

The foreign exchange market has been volatile this week due to multiple factors. Growing expectations that the Fed could cut interest rates in September and December have weighed on the dollar. Fed Chairman Jerome Powell's testimony to Congress further reinforced market expectations of a Fed policy shift, which kept dollar bulls on the defensive.

The latest weak US economic data, released on Wednesday, further supported expectations of a rate cut. Nonfarm payrolls added 206,000 jobs, above expectations of 190,000, but April and May were revised sharply lower. In addition, the unemployment rate rose to 4.1%, while the annual growth rate of average hourly earnings fell to 3.9%. The data points to a slowdown in US economic activity, and market expectations for a Federal Reserve rate cut in September have risen to 77%.

On the other hand, the People's Bank of China suspended gold purchases for the second month in a row, affecting short-term demand for gold. Reduced demand from China, the world's largest consumer of gold, could put some pressure on prices.

Globally, increased geopolitical uncertainty in Europe and the Middle East has prompted investors to seek safe haven assets, which has formed some support for gold.

Currently, EUR/USD is finding some support at the high level, and on the daily chart, EUR/USD is squeezed between the upper limit of the declining channel and the 200-day Exponential Moving Average (EMA) of 1.0790. If the price can break the upper limit of the Bollinger band at 1.8040, EUR/USD may rise further, with targets at 1.0916 (June high) and 1.0981 (March high).

However, if the price fails to break the resistance level of 1.0840, EUR/USD may retreat to the 100-day simple moving average of 1.0824 and may test further to the low of 1.0666. The relative Strength Index (RSI) has fallen to about 53, indicating a relatively neutral market sentiment. If EUR/USD can stay above the 200-day moving average for a sustained period, there may be more upside ahead.

The AUD/USD pair traded around 0.6750 on Thursday, showing a clear bullish trend. The 14-day Relative Strength Index (RSI) also remained above the 50 level, confirming the upward momentum.

If the bulls push further and AUD/USD breaks the July high of 0.6761 (July 8), it could challenge the December 2023 peak of 0.6871 and then the July 2023 peak of 0.6894 (July 14), all ahead of the key 0.7000 mark.

On the other hand, a bearish attempt could push the pair lower, first to the June low of 0.6574 (June 10) and then to the important 200-day moving average of 0.6567. Further declines could take it back to the May low of 0.6465 and the 2024 low of 0.6362 (April 19).

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ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
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Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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