US Dollar Currency Index Breaks Below Its 92.50 Level
Jason Lubin August 19, 2020 6:25 AM
EURUSD is sorrowing on the weak USD
On Tuesday, the US Dollar was bearish against all of its major currency pairs while the US Dollar Currency Index broke below its 92.50 level, reaching a low last seen in May 2018. On the U.S. economic data front, Housing Starts jumped to 1,496K on month in July (1,245K expected), from a revised 1,220K in June. Building Permits increased to 1,495K on month in July (1,326K expected), from a revised 1,258K in June.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending August 14th is expected. Finally, the Federal Open Market Committee is expected to release its Meeting Minutes for July 29th.
The Euro was bullish against most of its major pairs with the exception of the NZD and GBP. In Europe, no major economic data was released.
The Australian dollar was bearish against most of its major pairs with the exception of the USD.
The EUR/USD surged 61 pips to 1.1931 on Tuesday, reaching a high last seen in May 2018. The currency pair broke to the upside of a short-term sideways channel that began to form on July 27th. Price is using the 20-day moving average as rough support. The pair will likely continue advancing towards 1.2090, a major level from 2017. If price can break above 1.2090, it could likely grind higher to 1.2220. If price pulls back, look to the 20-day moving average for a potential bounce. If price falls below its 20-day moving average there is a high probability that it will bounce off of the 1.1695 support level.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.