Previous Trading Day’s Events (22.07.2024)
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Winners vs Losers
USDCAD remains on the top for this week with 0.4% gains. Gold this month is leading with 2.94% gains. The USD remains barely affected in the last couple of days.
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News Reports Monitor – Previous Trading Day (22.07.2024)
Server Time / Timezone EEST (UTC 03:00)
Weekend
U.S. President Joe Biden abandoned his reelection bid on Sunday under growing pressure from his fellow Democrats and endorsed Vice President Kamala Harris as the party’s candidate to face Republican Donald Trump in the November election.
Source:
https://www.reuters.com/world/us/biden-81-pulls-out-presidential-race-2024-07-21/
- Midnight – Night Session (Asian)
China’s Central Bank cut its key short-term policy rate for the first time in almost a year, stepping up support for the economy after growth disappointed and steering a shift toward a new policy benchmark.
Source: https://www.bnnbloomberg.ca/business/international/2024/07/22/chinese-central-bank-cuts-key-short-term-rate-to-buoy-economy/
- Morning – Day Session (European and N. American Session)
No important scheduled releases.
General Verdict:
- Moderate volatility in the FX market. The USD was affected early but no big moves. The dollar index moved sideways with low volatility.
- Gold moved lower instead of retracing from the drop.
- Crude oil dropped steadily after the consolidation breakout.
- U.S. indices closed higher after experiencing high volatility.
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FOREX MARKETS MONITOR
EURUSD (22.07.2024) 15m Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
The pair jumped early during the Asian session due to USD depreciation but it eventually reversed to the 30-period MA. There was the absence of significant scheduled figures and that is the reason why the USD was barely affected, with no significant activity taking place in the market. The pair continued with a sideways movement around the MA until the end of the trading day.
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CRYPTO MARKETS MONITOR
BTCUSD (Bitcoin) Chart Summary 1H
Server Time / Timezone EEST (UTC 03:00)
Price Movement
Since Friday, the 19th of July, Bitcoin moved to the upside rapidly reaching the resistance near 67,400 USD and remaining on a sideways path during the weekend near the mean at 67K USD. On Sunday Bitcoin moved to the upside breaking out from that range and reaching near 68,500 USD before retracing to the 30-period MA. This week, Bitcoin is moving mainly sideways and consolidating. The resistance area is near 68K USD and the support area is near the level 66K USD. Should a breakout occur the price is expected to move rapidly.
Crypto sorted by Highest Market Cap:
Cryptos have experienced a significant correction since mid-July. A strong reversal to the upside. Currently, it is stable and high. However, if we take into account the recent volatility, things could change soon.
https://www.investing.com/crypto/currencies
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EQUITY MARKETS MONITOR
S&P500 (SPX500) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
On the 18th a sharp drop to the 5,530 USD occurred before an intraday retracement took place. Level 5,540 acted as a strong support, coinciding with the 161.8 Fibo level. That eventually broke too on the 19th causing the index to reach 5,500 USD before retracing to the MA. The RSI was showing a slowdown and if the index crossed the 30-period MA on its way up eventually causing the index to remain above the MA as expected and mentioned in our previous analysis. A sideways and volatile movement is expected for now.
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COMMODITIES MARKETS MONITOR
USOIL (WTI) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
On the 17th Crude oil experienced a jump to the upside crossing the 30-period MA on its way up. After reaching the resistance at near 82.25 USD/b it retraced and reached the 61.8 Fibo level at near 81.30 USD/b. This rapid retracement forced the price to cross the MA on the 18th and reach the resistance area near 80.5 USD/b. It retraced back to the upside after that with another crossover but soon reversed again to the downside, settling near the 80.5 USD/b mean. As per our previous analysis forecast, Crude oil dived on Friday, a drop of nearly 2.6 USD/b. No retracement took place. After some consolidation, the next day, July 22nd, the price dropped heavily after the breakdown until the support near 77.30 USD, before retracement took place.
XAUUSD (Gold) 4-Day Chart Summary
Server Time / Timezone EEST (UTC 03:00)
Price Movement
On the 18th that triangle was broken to the downside and Gold’s price dropped sharply. On the 19th that drop continued steadily until it reached the support near 2,394 USD/oz with no retracement taking place the same day. On the 22nd the market opened with a gap upwards. After some consolidation phase and a triangle formation breakout, it moved to the downside finding strong support at nearly 2,385 USD/oz. Instead of further moving downwards, Gold reversed to the resistance area. The 2,400 USD/oz seems now important as its breakout might lead to a jump. Alternatively, the breakout of the 2,385 USD/oz support could lead to a rapid drop.
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News Reports Monitor – Today Trading Day (23.07.2024)
Server Time / Timezone EEST (UTC 03:00)
- Midnight – Night Session (Asian)
No significant news announcements, no special scheduled releases.
- Morning – Day Session (European and N. American Session)
No significant news announcements, no special scheduled releases. The scheduled Existing Home Sales and Richmond Manufacturing index are not expected to cause much volatility.
General Verdict:
- Moderate volatility in the FX market.
- Gold experiences significant moves but remains sideways.
- Crude oil tests the intraday highs. Could jump.
- The U.S. indices moved rapidly higher early during the Asian session and reversed a bit.
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Source: BDSwiss