Forex Signals Brief for July 2: Can the Good Times Roll On?
Rowan Crosby • 2 min read
Markets have been cheering the most recent developments between the US and China, but there are now plenty of questions as to whether the good times can continue.
As the SPX tagged record highs, many are suggesting that the impact of the weekends G20 are now fully priced in. That means we will need to see some more external news, for equities to make the next leg higher.
For many that is the FOMC and their next interest rate decision, which most believe will be a cut. The USD also seemed to like the trade talks restarting and it also rallied and has put most of the majors under some pressure to start the week.
Today, the calendar is a little thinner than yesterday, with the only top-tier release during the European session, being construction PMI from the UK which will impact the GBP/USD. It’s worth noting that BOE boss Carney, will be speaking later in the session.
The US session is thin data-wise, but as mentioned, it’s really all about the sentiment at the moment and if that can last.
Forex Signal Update
The FX Leaders Team opened the new month with 1 win from 3 trades with GOLD being a key trade for use throughout the day.
NZD/USD – Active Signal
The NZD/USD has been on a bit of a bull run, thanks mostly to the falling USD. As the Dollar bounced and the Kiwi weakened, it is back testing resistance turned support at 0.6700. We are long looking for a bounce in what is a nice technical trade.
EUR/GBP – Active Signal
The EUR/GBP signal is holding on by a thread here after a busy day of data. This one will have some work today to survive the session.
BTC has continued to fall back and has run all the way back to the $10,000 level.
Price has fallen by nearly 30% in the last few sessions and has been getting overrun by the sellers. But the fact that $10,000 has held is a positive.
As I mentioned earlier today, this type of pullback is not unexpected when a market gets vertical. While the levels above have been important, $10,000 is the massive on from round number and psychological point of view.