What are the Market Trends of the day and other important Economic News?
This article is originally referred from IronFX News.
Trump blasts Theresa May’s Brexit plan
In a recent interview US President Trump stated that May’s Brexit plan could negatively affect a possible new Trans-Atlantic deal.
He also stated that such a deal would leave the UK to closely related to the EU and the US would have to deal with the EU instead of the UK. Furthermore, he backed Ex- Foreign minister Boris Johnson and stated that he would be a great PM.
Further negative headlines about Theresa May’s Brexit plan could weaken the pound.
Cable dropped after testing the 1.3215 (R1) resistance line yesterday.
The pair could show further bearish tendencies today as technically the direction of the pair could be dictated by the downward trend-line incepted since the 9th of July.
For our opinion to change we would require a clear breaking of the prementioned trend-line.
Also please note that the RSI indicator is below the reading of 50 but above 30 which could imply that there could be further room for a bearish sentiment.
Should the bears continue to rein the pairs direction we could see it breaking the 1.3125 (S1) support line and aim for the 1.3040 (S2) support barrier.
Should the bulls take over the market we could see the pair breaking the prementioned upward trend-line and aim if not break the 1.3215(R1) resistance line continuing higher aiming for the 1.3330(R2) resistance level.
US Dollar slowly steadies
After the release of the positive US CPI data yesterday, the USD steadied against its major counterparts keeping most of its gains.
Practically the USD got a double support as the initial jobless claims dropped more than expected implying a tighter labour market and the CPI accelerated at its fastest pace on a yoy basis in more than five years.
The prementioned releases backed arguments for the Fed to remain at its gradual hike path.
As per analysts, USD gains were capped though, by worries about the deepening trade dispute between the US and China.
We could see the USD remaining steady as the financials released yesterday could provide a higher basis for the greenback.
USD/JPY continued to rise yesterday and during today’s Asian session tested the 112.75 (R1) resistance line.
We could see the pair trading in a sideways manner today as the USD side may start losing steam.
Technically it should be noted that the green candlesticks are still there but getting smaller and smaller.
Also please note that the RSI indicator remains above the reading of 70 implying an overcrowded long position.
Should the pair continue to be under selling interest we could see the pair breaking the 112.75 (R1) resistance line and aim for the 113.65 (R2) resistance level.
Should it come under selling interest we could see it breaking the 112.05 (S1) support line and aim for the 111.30 (S2) support barrier.
In today’s other economic highlights:
In the American session, we get the US University of Michigan consumer sentiment and expectations indicators for July.
As for speakers, BoE’s Jon Cunliffe and FOMC member Raphael Bostic speak.
Please also note that the Czech National Bank will release the minutes of it’s last meeting.
Original Source: IronFX News