EUR/USD climbed above 1.2020 for the first time since January 2015. The price showed significant bullish action intraday. Also, safe-havens including gold and yen jumping after North Korea fired a ballistic missile over Japan. Gasoline gained with oil as energy companies braced for another hit from Tropical Storm Harvey.
German Gfk German Consumer Climate was published today. The Index came out in 10.9 as better than expected and support for the EUR/USD.
U.S Conference Board (CB) Consumer Confidence data will closely be followed today. It is a leading indicator as it can predict consumer spending, which plays a major role in the overall economic activity. It is expected to ease to 120.3 in August from 121.1 a month ago. A lower than expected reading should be taken as negative for the Dollar.
Technical Analysis:
EUR/USD: The EUR/USD pair climbed above 1.2020 and the price showed significant bullish action. As long as the price trades above 1.2020 on a daily basis, the rally may continue in the single currency. On the other hand, if the price drops below 1.2020, the next support level will be at 1.1975
Support: 1.2020 – 1.1975 – 1.1930
GBP/USD: The GBP/USD pair hit the main resistance level of 1.2961 and then pulled back. In order for the bullish action gain more momentum, it needs to remain above 1.2961 on a daily basis. At this point, the next resistance level will be at 1.3007. Otherwise, if the price trades below 1.1261, we will face 1.2917 and 1.2873 as support levels.
Support : 1.2917 - 1.2873 - 1.2844
Resistance : 1.2961 – 1.3007 – 1.3050
GOLD: The Gold price jumped after North Korea fired a ballistic missile over Japan. The price is now trading above the 1307 main support level. As long as the price trades above 1307 on a daily basis, the bullish action is most likely dominate. On the other hand, if the price drops below 1307, the next support level will be at 1291.
Support: 1307 - 1291 - 1283
USD/JPY: The risk-off is in the global market today. the USD/JPY pair showed a downward movement. As long as the pair stays below 108.78, on a four-hourly basis, the Yen may gain more value against the Greenback. At this point, we will face 107.65 and 106.46 as support levels. On the other hand, if the price goes beyond 108.78, the next resistance level will be at 109.35
Support : 107.65 - 106.46 – 105.04
Resistance : 108.78 - 109.35 - 109.90