Forex Signals Brief for Jul 31: Can Markets Hold Up?
US equity markets fell away yesterday and the main reason was sentiment dragging them lower.
US Market Wrap
US equity markets fell away yesterday and the main reason was sentiment dragging them lower.
The headlines of the session were from US President Donald Trump, who indicated he could push back the US election, because of the COVID situation. This dented risk assets to some degree and led to the SPX closing red. That wasn’t helped by an ugly GDP print, that showed a massive contraction in Q2.
At the same time, the Greenback continues to decline, with the US Dollar Index, falling through the lows with no end in sight just yet.
That helped support the majors who continue to push onward and upward, while the likes of GOLD is also still benefiting.
The Data Agenda
Today looks like it’s going to be a busy one in terms of data with a number of top-tier release scheduled for Friday.
Early on, we look to Europe and the EUR/USD as we are going to be getting CPI and GDP from the Eurozone. However, there are also a host of second-tier releases from the various member countries as well, which can lead to choppy action at times.
In the US, we look to Michigan Sentiment and some house price data, however, the USD/CAD will be focused on Canadian GDP.
As we head into the weekend, sentiment will once again be the main theme of the session and it will be interesting to see if the risk trade can rebound.
Forex Signal Update
The FX Leaders Team didn’t close any green signals yesterday but we have a few positions still open at the moment.
EUR/USD – Pending Signal
The EUR/USD continues to benefit from the soft USD. We’re hunting more long opportunities at the moment as the trend is strong.
DAX – Active Signal
The DAX broke down yesterday along with US equities and through that trend line. We would expect a quick bounce and retest here, so we are long.
Cryptocurrency Update
Right on cue, ETH has broken out of that flag formation that we highlighted yesterday and sure enough, cracked through the highs.
The great thing about crypto’s are they do really follow the technical patterns in my opinion and obey key levels. For now, we should watch $330 and a hold of that level would be a possible long entry.
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