- USD and most of the majors traded sideways yesterday with little markets impacts from PMI reports.
- Oil bounced off lows and surged over 100 pips as initial reaction to OPEC meeting.
- Fed is set to hold two-day meeting today, focusing on policy statements from FOMC on the early hours of Thursday morning, Beijing time.
Forex markets mostly traded sideways in the previous session (Monday, 24, July) with muted reactions to intraday economic releases. U.S. Markit manufacturing PMI, non-manufacturing PMI and composite PMI, which were all better than expected, gave USD a boost as several FED officials commented that growth in PMI data regained some momentum and kept pace with FED’s inflation goal. However, those PMI data were not strong enough to help USD broke above its descending trend line resistance on its 1 hour chart.
The Dollar Index (DXY) whipsawed in most part of the session with limited upside room. Its short term moving averages flattened after converging below its long term moving averages, which remained diverging steadily with bearish bias and watch potential intraday pull-back below these resistances.
（DXY H1 chart）
Euro small and short-term corrective decline found supports at rising trend line on its 1 hour chart. Keep an eye on the effectiveness of H1-period EMA60 as a support and watch if price action in the euro could bounce off the support. The pound fell back slightly as it reached 61.8% Fibonacci level of previous decline around 1.3050 as a resistance and failed to break above the level before bouncing back. Its intraday support stands at H4-period EMA30 and resistance remains at 1.3050. The Australian dollar pulled back after surging upwards, trading at relative highs within a consolidation range on Monday. The commodity currency’s intermediate pull-back could test its rising trend line support on the 4 hour chart, targeting next support circa EMA30—EMA40.
（AUD/USD H4 chart）
Gold rebounded and formed a new high since its rally at 1258.53 in European session before dropping in choppy New York session. Its short term moving averages moved downwards after converging and touched its long term moving averages which remained divergent with bullish bias as supports today.
Keep an eye on its short term moving averages and watch if they could turn higher again.
（Gold H1 chart）
By JasonZou —— Chief Analyst of AvaTrade China
Disclaimer: The views and opinions expressed in this article are those of the authors and for the purpose of reference only, and shall not be relied upon by investors in making any trading decisions.