Keep Your Eye On ECB Rate Decision And US GDP Growth This Week
The US Dollar was under pressure last week after Federal Reserve officials bolstered expectations of an aggressive rate cut this month to address weakening inflation.
New York Federal Reserve President John Williams said that the Fed will “act quickly” to support the economy as “it’s better to take preventative measures than to wait for disaster to unfold.”
Looking ahead, we will closely watch the US second-quarter gross domestic product on Friday, which is expected to see a growth of 1.8%, slowing from 3.1%.
We will focus on US Durable goods orders on Thursday. Excluding transportation in the meantime are expected to ease to 0.2% in June from 0.4% the previous month. Investors will also get an update on the health of the U.S. housing market from reports on existing home sales, new home sales and the house price index. A better than expected results will support DXY and bond yields in the US.
In the Eurozone area, the ECB is widely expected to leave interest rates unchanged when it announces its policy decision on Thursday. Weaker inflation in the eurozone and downside risks from global trade issues, coupled with signs that the Fed’s next move could be dovish, markets will focus on ECB President Mario Draghi’s press conference for similar signs of future easing.
The EURUSD pair dropped back the 1.1219 daily support level. However, as long as the pair stays above 1.1219 on a daily basis, the fall may be limited and we will see 1.1285 again as a resistance level. On the other hand, if the pair breaks down below 1.1219, the next support level will be at 1.1103.
Support: 1.1219 - 1.1103 - 1.0980
Resistance: 1.1285 - 1.1355 - 1.1450
The GBPUSD pair closed last week below the key resistance level of 1.2528. If the pair stays below 1.2528, on a daily basis, we will follow the major support level at 1.2395 again. On the other hand, if the pair rises above 1.2528, the next resistance level will be placed at 1.2607
Resistance: 1.2528 - 1.2607 - 1.2668
The USDJPY pair closed last week just below the key resistance level of 107.70. If the pair stays below 107.70, on a four hourly basis, we will face support level at 106.72. On the other hand, if the price goes beyond 107.70, the next resistance level can be seen at 108.49.
Resistance : 107.70 - 108.49 - 108.95
Gold Price extended gains and hit a six-year high-level last week. Middle East tensions also helped boost safe-haven gold. The 1414 main support level is critical. If the yellow metal’s price stays above 1414 on a four hourly basis, the bullish action is most likely dominate and the main resistance level can be seen at 1451 again. In contrast, If the price drops below 1414, the daily support level will be at 1391.
Support: 1414 - 1391 - 1364
Resistance: 1451 - 1483
21 Jul 19 (Sun)
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