July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00

July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets

EUR/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

The month of May, as you can see, recovered off worst levels out of demand from 1.0488/1.0912 and closed firm. This prompted an extension in June to highs at 1.1422, adding 1.2% despite also running into opposition at the lower ledge of nearby supply from 1.1857/1.1352 (unites with long-term trendline resistance [1.6038]).

Interestingly, July, currently trading +4.6%, is on course to overthrow the aforesaid trendline resistance and supply.

With reference to the primary trend, the pair has exhibited lower peaks and troughs since 2008.

Daily timeframe:

Rolling out a seventh successive bullish candle Monday, we’re now toying with highs not seen since late September 2018 as well as crossing paths with supply set at 1.1798/1.1723.

Further upside in this market, moves that overrun current supply, throws light on supply from 1.2012/1.1937.

Indicator-based traders will also want to note the RSI oscillator entered overbought territory, recently crossing above 80.00.

H4 timeframe:

In light of recent optimism, traders will see H4 price formed an interesting demand area coming in at 1.1682/1.1716, a point where a decision was made to break resistance at 1.1722. The move shines light on resistance close by at 1.1791.

Candlestick traders will also acknowledge the array of upper shadows, suggesting sellers may make an entrance as we head into Asian trading today.

H1 timeframe:

Following a somewhat disorderly 1.17 retest, bulls powered through supply at 1.1758/1.1735 to reach highs at 1.1781.

Current action is seen retesting 1.1758/1.1735 as demand, indicating moves to 1.18 could be in store.

It should also be noted the RSI indicator recently exited overbought territory.

Structures of Interest:

Monthly price trades FIRMLY above trendline resistance, albeit still sheltered within the upper parapets of supply.

Daily action tests supply at 1.1798/1.1723, while both H4 and H1 display scope to navigate to the 1.18 neighbourhood.

A dip to H4 demand at 1.1682/1.1716 may be seen, movement that could entice dip-buying strategies to target the 1.18 region as an initial point of interest. This is based on the monthly timeframe’s strength to potentially override daily supply.

July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets

AUD/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

May’s extension, together with June and July’s follow-through, witnessed supply at 0.7029/0.6664 and intersecting long-term trendline resistance (1.0582), relinquish ground in recent trading. Technically, buyers are now potentially free to run as far north as 0.8303/0.8082, a supply zone that aligns closely with trendline resistance (prior support – 0.4776).

Despite the above, the market’s primary trend still points south, demonstrating a series of lower lows and lower highs since mid-2011.

Daily timeframe:

Partially altered from previous analysis –

Since ousting resistance at 0.6931, the level has been featured as support.

Last Wednesday’s action came within a stone’s throw away from reaching 0.7197 resistance, with Thursday delivering a bearish candle and snapping a four-day winning streak. Monday, however, replied with strength (full-bodied bullish candle) and took the currency pair to within touching distance of the aforesaid resistance.

In terms of the RSI oscillator, the value is still seen producing bearish divergence around overbought levels.

H4 timeframe:

Partially altered from previous analysis –

Following last Wednesday’s rejection at supply from 0.7198/0.7179, an area which houses daily resistance underlined above at 0.7197, Friday dipped a toe in waters just north of support at 0.7043.

Putting forward a mild recovery into the week’s end, Monday, as you can see, extended recovery gains and scored highs at 0.7150, drawing things to back within close proximity of the aforesaid supply.

H1 timeframe:

Renewed upside Monday, fed by persistent USD selling, delivered candles above 0.71 and the 100-period simple moving average to eventually address 0.7150 resistance.

AUD/USD bulls appear poised to topple 0.7150 today, in favour of testing last Wednesday’s high at 0.7183 and maybe the 0.72 level.

With respect to the RSI oscillator, we recently trekked above 50.00 though remain reluctant to enter overbought terrain.

Structures of Interest:

Technical developments imply the currency pair is eyeballing levels above 0.7150 resistance on the H1 today, with the under ledge of H4 supply set as the initial upside target at 0.7179, closely trailed by daily resistance at 0.7197 and then the 0.72 level on the H1.

July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets

USD/JPY:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

Since kicking off 2017, USD/JPY has been carving out a descending triangle pattern between 118.66/104.62.

April and May were pretty uneventful, with June also wrapping up indecisively in the shape of a neutral doji candlestick pattern. July, nonetheless, currently trades lower by 2.4%.

Areas outside of the noted triangle can be seen at supply from 126.10/122.66 and demand coming in at 96.41/100.81.

Daily timeframe:

Demand at 105.70/106.66 welcomed price action Friday, receiving a mild blow to its lower border, with Monday finishing the job and returning to levels just ahead of support coming in from 105.01. Beyond the latter, limited (obvious) support is seen until demand at 100.68/101.85, extended from October 2016.

Also noteworthy is the RSI indicator recently bottomed ahead of the oversold boundary.

H4 timeframe:

Partially altered from previous analysis –

Friday, as you can see, wrapped up with price retesting the underside of 106.07, a level which served well as resistance as we welcomed the new week.

The upper boundary of a large demand at 104.50/105.29 made a showing heading into the closing stages of Monday, as USD/JPY registered its third successive daily loss. It should be noted this area houses daily support at 105.01 and the lower base of the monthly descending triangle pattern at 104.62.

H1 timeframe:

As above, USD/JPY remained depressed Monday, accelerating things through 105.50 support and testing levels just ahead of the 105 base. Heading into US trade, however, the pair staged a modest recovery to nearby 105.50 resistance.

Above 105.50, we have supply set just ahead of 106 at 105.94/105.76.

The RSI momentum oscillator is also currently seen producing bullish divergence.

Structures of Interest:

Price is seen closing in on some considerable support right now. Monthly price is currently heading to 104.62 (lower edge of descending triangle), daily price trades within shouting distance of support at 105.01 and H4 tests demand at 104.50/105.29.

However, should we retake 105.50 and retest H1 supply at 105.94/105.76 before testing higher timeframe supports (104.62/105.01), sellers may consider this area a valid base.

July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets

GBP/USD:

Monthly timeframe:

(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)

GBP/USD trades higher by 3.9% in July, with price action attempting to swarm long-term trendline resistance (1.7191) after support at 1.1904/1.2235 withstood downside attempts in April and May.

Despite the primary trend facing lower since early 2008, rupturing current trendline resistance could have buyers work towards another prominent trendline resistance (2.1161).

Daily timeframe:

Partially altered from previous analysis –

After mingling below the 200-day simple moving average at 1.2697 since July 9, last Tuesday squeezed above the aforesaid value and, after a fleeting retest of the latter, headed to nearby supply coming in from 1.3021/1.2844 yesterday.

Failure to hold supply, channel resistance (1.2813) is likely next in the firing range.

The RSI oscillator, as you can see, also recently greeted overbought levels.

H4 timeframe:

Partially altered from previous analysis –

Last week’s analysis noted the possibility of a bullish pennant formation between 1.2768/1.2644. As you can see, Friday kicked through the upper borderline of the aforesaid pattern and saw Monday overturn supply at 1.2851/1.2805. A possible retest of the latter could be seen today.

The break of the bullish pennant, generally considered continuation patterns, potentially stirred a buy signal, targeting 1.3008 (measured by calculating the preceding move and adding this value to the breakout point – pink). This implies we might be heading for higher ground.

H1 timeframe:

Buyers pushed aside 1.28 heading into opening trade Monday, clearing the path north for a run into nearby supply at 1.2936/1.2862, positioned within daily supply at 1.3021/1.2844 and sited just above H4 supply at 1.2851/1.2805.

Technical structure also puts forward a trendline support (1.2518).

With reference to the RSI oscillator, we’re seen trading around overbought territory, with 70.00 withstanding a number of upside attempts in recent movement.

Structures of Interest:

Partially altered from previous analysis –

Monthly traders are attempting to secure position above trendline resistance, while daily price bumped into supply at 1.3021/1.2844 which may hamper upside.

With the H4 bullish pennant pattern recently making its presence felt, emphasising the possibility of reaching 1.30s, and monthly showing signs of reaching for higher levels, this could be sufficient to push through opposition within daily and H1 supplies.

On account of the above, a retest at H4 demand from 1.2851/1.2805 could be something to watch for today.

July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

 

 

 

 

 

  • July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets
    • Articles
    • Views
    AUTHOR

    FP Markets

    FP Markets is an Australian regulated broker established in 2005 offering access to CFDs across Forex, Indices, Commodities, Stocks & Cryptocurrencies on consistently tighter spreads in unparalleled trading conditions. FP Markets combines state-of-the-art technology with a huge selection of financial instruments to create a genuine broker destination for all types of traders.

    PROFILE
Start Trading with a Global Broker

Archives

Archives

Categories


Start
Trading
in Minutes

Open an account now


July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets Access +10,000 financial instruments
July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets Auto open & close positions
July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets News & economic calendar
July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets Technical indicator & charts
July 28th 2020: DXY Records 7th Successive Daily Loss and Shattered 94.00, FP Markets Many more tools included

By supplying your email you agree to FP Markets privacy policy and receive future marketing materials from FP Markets. You can unsubscribe at any time.