After 5-days of consecutive negotiations, the EU leaders reached a stimulus package deal of 750 billion euro to rebuild the economy ravaged by the coronavirus. The emergency fund will give out 390 billion euros of grants (lower than the anticipated 500 billion euro) and 360 billion euros of low-interest loans. Hence, investors were confident with the European stock market with both the value of shares and bonds going up. Based on today’s trading session, the EUR/USD went over 1.15300 while making the value to the U.S. dollar continue dropping.

On the other hand, the gold price stood firmly between 1814.0~1816.0 USD/Ounces yesterday (21st). This surge made a new high rising over 25 USD/Ounces because of two factors: The recent depreciation of U.S. dollar; and the global practice on Quantitative Easing policies. The gold price went up sharply with its trendline maintaining at high point with slight fluctuation. It is expected to challenge another new high after a pullback.

Technical Analysis (XAUUSD)

The price of gold (22nd of July) lies around 1840.4 early today. Under 1-hour of technical analysis, it continued to surge as predicted yesterday (21st); it rose over 25 USD/Ounces. The trendline currently lies between the middle and upper Bollinger Band, with the band facing upwards expanding looking bullish. There might be a chance to rise again after a small pullback.

Currently, the short-swing upper resistance level lies between 1851.0~1853.0. The current support level lies between 1834.0~1836.0. Investors who wish to go long could consider buying between 1843.0~1845.0 in the short-term and set stop loss below 1840.5.

xauusd

Technical Analysis (EURUSD):

The price of EUR/USD (22nd of July) lies around 1.14429 early today. Under 1-hour of technical analysis, it went to a new high as predicted yesterday (21st). As the value of U.S. Dollar continued to drop, the value of Euro rose again. The trendline currently lies between the middle and upper Bollinger Band, with the band facing upwards looking bullish. There might be a chance to rise again after a small retracement.

Currently, the short-swing upper resistance level lies between 1.15700~1.15800. The current support level lies between 1.14900~1.15000. Investors who wish to go long could consider buying between 1.15200~1.15280 in the short-term and set stop loss below 1.15100.

eurusd

Technical Analysis (GBPUSD):

The price of GBP/USD (22nd of July) lies around 1.27205 today. Under 1-hour of technical analysis, it rose to a new high again as predicted yesterday (21st). The trendline pulled back to the middle Bollinger Band, with the band continue to face up. There might be a chance to continue rising.

Currently, the short-swing upper resistance level lies between 1.27750~1.27850. The current support level lies between 1.26800~1.26900. Investors who wish to go long could consider buying between 1.27350~1.27450 in the short-term and set stop loss below 1.27250.

gbpusd

Technical Analysis (AUDUSD):

The price of AUD/USD (22nd of July) lies around 0.71316 early this morning. Under 1-hour of technical analysis, it surged again as predicted yesterday (21st). The trendline currently lies between the middle and upper Bollinger Band with the band continues to face upwards. There might be a chance to continue the rise.

Currently, the short-swing upper resistance level lies between 0.71650~0.71700. The current support level lies between 0.70900~0.70950.

Investors who wish to go long could consider buying carefully between 0.71300~0.71350 in the short-term and set stop loss below 0.71220.

audusd

Technical Analysis (USOUSD):

The price of USO/USD (22nd of July) lies around 41.27 early this morning. Under 1-hour of technical analysis, it rose again after retracement as predicted yesterday (21st). The trendline pulled back and now lies near the middle Bollinger Band bumping. The Bollinger Band continues to face up. There might be a chance to continue rising after correction.

Currently, the short-swing upper resistance level lies between 42.20~42.30. The current support level lies between 40.80~40.90. Investors who wish to go long could consider buying between 41.40~41.45 in the short-term and set stop loss below 41.28.

gbpusd

Technical Analysis (Nas100):

The NASDAQ (22nd of July) lies around 10863.3 early this morning. Under 1-hour of technical analysis, it pulled back from high volatility zone as predicted yesterday (21st). The trendline currently lies between the middle and lower Bollinger Band with the band facing downwards. There might be a chance to continue dropping after a small rebound.

Currently, the short-swing upper resistance level lies between 11000.0~11020.0. The current support level lies between 10750.0~10770.0. Investors who wish to sell short could consider selling between 10930.0~10950.0 in the short-term and set stop loss above 10980.0.

nas100

Economy Calendar (22nd of July)

(Source: uk.investing.com)

 TimeDataImportance
1.13:30CPI (MoM) (Jun)★★★
2.14:00House Price Index (MoM) (May)★★★
3.15:00Existing Home Sales (Jun)★★★
4.15:30EIA Weekly Distillates Stocks★★★★

(Importance: maximum five stars ★★★★★)

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