Risk appetite overall improved near the end of June as a series of countries including Japan signed new trade deals with the USA. Recent British data, primarily on inflation, suggest that the Bank of England will continue to be cautious about cutting rates, possibly more so than the Fed. However, the British government’s budget deficit and increased borrowing are negative factors, suggesting that taxes will probably need to be hiked later in the year, which would hit growth.
The bounce appeared to gain momentum around 21 July after an upward crossover of the slow stochastic within the trigger zone and, relatively speaking, higher volume. The combination of these factors would normally suggest a more reliable buy signal but recent highs around $1.375 would probably be very challenging to break.
The 20 SMA is in the process of death crossing the 50 SMA from Bands, so it might also be hard for the price to continue clearly above $1.354 in the immediate future. A retest of the likely support around $1.335 is possible if there’s a significant shift in data, notably jobs and inflation from both countries, or if focus returns to trade tension, but the 100 SMA is likely to be a dynamic support before that.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
The bounce appeared to gain momentum around 21 July after an upward crossover of the slow stochastic within the trigger zone and, relatively speaking, higher volume. The combination of these factors would normally suggest a more reliable buy signal but recent highs around $1.375 would probably be very challenging to break.
The 20 SMA is in the process of death crossing the 50 SMA from Bands, so it might also be hard for the price to continue clearly above $1.354 in the immediate future. A retest of the likely support around $1.335 is possible if there’s a significant shift in data, notably jobs and inflation from both countries, or if focus returns to trade tension, but the 100 SMA is likely to be a dynamic support before that.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.