Based on the report of Beige Book by the Federal Reserve yesterday (15th), as several states in the U.S. began to relieve quarantine from the coronavirus (COVID-19) pandemic, many enterprises have begun to re-open their business at the beginning of July. However, as the number of cases of the coronavirus continues to increase recently, there are still uncertainties about the economic recovery. The U.S. is now suffering the biggest recession during this second quarter due to the uncontrollable coronavirus that continues to prevail across the states. As a result, according to the report, the economic recovery and the pre-anticipated rebound are likely to slow down. If the second coronavirus outbreak occurs, there is a chance that it may heavily impact the economic recovery even more.

In addition, the U.S. dollar continues to slump with correction. Following the latest economic indicator, the NY Empire State manufacturing Index (Jul), the Import Price Index (Jun) and the Industrial Production (Jun) bounced back much greater than markets’ anticipation, making the U.S. dollar to rebound from deep with gold price rising and pulled back into the resistance zone, the trendline currently bumps in the volatility zone on high points but maintained on the upper part of the Bollinger middle Band. Therefore, there are signs of bullish trends in the short-sway.

Technical Analysis (XAUUSD)

The price of gold (16th of July) lies around 1810.0 early today. Under 1-hour of technical analysis, the trend went up again after a pull-back as predicted yesterday (15th). The trendline currently lies between the middle and upper Bollinger Band, with the band facing upwards, there might be a chance to rise again after a slight pullback.

Currently, the short-swing upper resistance level lies between 1818.0~1820.0. The current support level lies between 1804.0~1806.0. Investors who wish to go long could consider buying between 1808.5~1810.5 in the short-term and set stop loss below 1806.0.

xauusd

Technical Analysis (EURUSD):

The price of EUR/USD (16th of July) lies around 1.14115 early today. Under 1-hour of technical analysis, as predicted yesterday (15th), the Euro went high but was sooner slumped because the US dollar rebounded from deep. The trendline lies in the lower part of the Bollinger middle Band, looking to break through the short-sway support level. There might be a chance to go down again after touching the resistance.

Currently, the short-swing upper resistance level lies between 1.14350~1.14450. The current support level lies between 1.13600~1.13700. Investors who wish to sell short could consider selling between 1.14150~1.14200 in the short-term and set stop loss above 1.14300.

eurusd

Technical Analysis (GBPUSD):

The price of GBP/USD (16thof July) lies around 1.25867 today. Under 1-hour of technical analysis, the trend continues to rise as predicted yesterday (15th), following the bounce back of the U.S. dollar from deep, the Pound Sterling dropped. The trendline currently lies between the middle and lower Bollinger Band, with the band facing down, there might be a chance to continue to move down.

Currently, the short-swing upper resistance level lies between 1.25950~1.26050. The current support level lies between 1.25200~1.25300. Investors who wish to sell short could consider selling between 1.25700~1.25760 in the short-term and set stop loss above 1.25890.

gbpusd

Technical Analysis (AUDUSD):

The price of AUD/USD (16th of July) lies around 0.70080 early this morning. Under 1-hour of technical trending analysis, the trend skyrocketed as predicted yesterday (15th), it pulled back due to the rebound of US Dollar. The trendline is bouncing back to the lower part of the Bollinger middle Band. There might be a chance to go down again after rebounding to the resistance.

Currently, the short-swing upper resistance level lies between 0.70080~0.70150. The current support level lies between 0.69700~0.69750.

Investors who wish to sell short could consider selling carefully between 0.69960~0.70000 in the short-term and set stop loss above 0.70060.

audusd

Technical Analysis (USOUSD):

The price of USO/USD (16th of July) lies around 40.85 early this morning. Under 1-hour of technical analysis, the trend appeared to be bumpy on the high point as predicted yesterday (15th). It broke through the volatility zone on high. The trendline currently lies between the middle and upper Bollinger band, the band looks up with a chance to continue rising.

Currently, the short-swing upper resistance level lies between 41.30~41.40. The current support level lies between 40.60~40.70. Investors who wish to go long could consider buying between 40.90~41.00 in the short-term and set stop loss below 40.75.

usousd

Technical Analysis (Nas100):

The NASDAQ (16thof July) lies around 10704.7 early this morning. Under 1-hour of technical trending analysis, the trend went up to the resistance level then pulled back as predicted yesterday (15th). The trendline currently lies between the middle and lower Bollinger Band, the band faces down looking bearish with a chance to continue to drop.

Currently, the short-swing upper resistance level lies between 10700.0~10720.0. The current support level lies between 10470.0~10490.0. Investors who wish to sell short could consider selling between 10640.0~10660.0 in the short-term and set stop loss above 10680.0.

nas100

Economy Calendar (16th of July)

(Source: uk.investing.com)

 TimeDataImportance
1.02:30Unemployment Rate (Jun)★★★
2.03:00GDP (YoY) (Q2)★★★
3.07:00Employment Change 3M/3M (MoM) (May)★★★
4.07:00Unemployment Rate (May)★★★
5.07:00Claimant Count Change (Jun)★★★
6.07:45French CPI (YoY)★★★
7.10:00Trade Balance (May)★★★
8.12:45ECB Marginal Lending Facility★★★★
9.13:30Continuing Jobless Claims★★★★
10.13:30Core Retail Sales (MoM) (Jun)★★★★
11.13:30Philadelphia Fed Manufacturing Index (Jul)★★★
12.15:00NAHB Housing Market Index (Jul)★★★
13.15:00Business Inventories (MoM) (May)★★★
14.15:30Natural Gas Storage★★★

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

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