USD ends the week on a strong note

EUR/USD uptrend remains in tact despite USD intraday strength


On the U.S. economic data front, The U.S. labor market continued to improve in July despite a surge in coronavirus infections. Nonfarm Payrolls increased by 1.76 million in July, beating the 1.48 million estimate after a 4.79 million gain in June. The unemployment rate fell by more than expected to 10.2%. Finally, wholesale inventories declined less than anticipated at 1.4% on month in June from a decline of 2% in May.

The Euro was weaker against most of its major pairs except for the AUD and NZD. In Europe, June Industrial Production data was released for Germany at +8.9% (vs +8.2% on month expected) and for France at +12.7% (+8.4% on month expected). German June Balance of Trade was released at 15.6 billion euros, higher than 11.3 billion euro expected.

The Australian dollar was under pressure against all of its major pairs with the exception of the NZD.

Friday's market Wrap:

VIX index fell 0.44pt (-1.94%) to 22.21.

The US 10 year yield rose 2.8bps  to 0.564%.

Gold dropped $32.71 (-1.59%) to 2030.84.

WTI Crude Oil declined 0.43$ (-1.03%) to 41.52.

Regarding Major FX Pairs:

EUR/USD dropped 92pips to 1.1785 

GBP/USD fell 84pips to 1.3059 

USD/JPY rose 41pips to 105.96 

USD/CHF gained 31pips to 0.9129

AUD/USD fell 78pips to 0.7158 

USD/CAD jumped 76pips to 1.3383 

The dollar index rose 0.63pt to 93.416

Looking at Friday's largest FX PIP mover from a technical perspective, the EUR/USD dropped 92 pips however the uptrend remains in play. The EUR/USD is challenging the $1.1915 resistance area however price action remains supported by the 20-day moving average. As long as key support holds at the $1.1635 level (20-day moving average) we anticipate further upside and a break of $1.1945 resistance. 

Source: GAIN Capital, TradingView

Happy Trading

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account