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Maxain Morning Analysis 02/07/2024

EUR/USD

Trend Theme:EUR/USD looks higher on Monday but technical ceiling remains.

Trend Review:EUR/USD clipped into a fresh multi-week high above 1.0770 on Monday before getting forced back down by a broad-market reversal in investor sentiment. Bullish momentum was cut short after US activity figures flashed warning signs of a steepening economic downturn.

Today Advise:Bearish

Key Levels:

PPResistance*1.07514 *1.07537 **1.07605 ***
1.07332Support*1.07314 *1.07299 **1.07266 ***

Weekly forecast

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USD/CAD

Trend Theme:USD/CAD holds above 1.3700 on stronger US Dollar, higher US Treasury yields.

Trend Review:The USD/CAD pair gains ground near 1.3735 during the early Asian session on Tuesday. The rebound of the pair is bolstered by the stronger US Dollar and higher US Treasury bond yields. Nonetheless, the upside of the pair might be limited as supply fears of crude oil in the second half of the year might lift the commodity-linked Loonie. 

Today Advise:Bullish

Key Levels:

PPResistance*1.37487 *1.37516 **1.37593 ***
1.37439Support*1.3741 *1.37362 **1.37285 ***

Weekly forecast

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WTI

Trend Theme:Oil prices hit a two-month high amid expectations of rising summer demand and concerns about the situation in the Middle East.

Trend Review:Oil prices rose about 2 percent on Monday to a two-month high on hopes of higher demand during the northern hemisphere summer driving season and amid concerns that conflict in the Middle East could spread and reduce global oil supplies.

Today Advise:Bullish

Key Levels:

PPResistance*83.169 *83.188 **83.235 ***
83.141Support*83.122 *83.094 **83.047 ***

Weekly forecast

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XAU/USD

Trend Theme:Gold price consolidates in a range below 50-day SMA ahead of Powell’s speech.

Trend Review:Gold price struggles to capitalize on Monday’s gains amid some follow-through USD buying. Rising bets for a September Fed rate cut move should help limit the downside for the metal. Fed Chair Powell’s speech eyed for some impetus ahead of FOMC minutes on Wednesday.

Today Advise:Bullish

Key Levels:

PPResistance*2333.98 *2335.17 **2337.22 ***
2333.12Support*2331.93 *2331.07 **2329.02 ***

Weekly forecast

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