In this article, we have covered the highlights of global market news about the USD, Japanese Yen, the British pound and Silver price.
USD Technical Outlook: USD/THB, USD/PHP, USD/SGD, USD/IDR
Over the previous week, the US dollar has been more potent than the Thai baht. As a result, USD/THB reached a 2015 high of 36.668. The two, nevertheless, we’re unable to maintain a close above it. Instead, prices left a candlestick pattern known as a shooting star. Though it is still too early to assume anything, this indicates uncertainty. A tipping point may be indicated by more negative confirmation. A confirmation closing below the 50-Day Simple Moving Average (SMA) might indicate rising bearishness. Otherwise, continued upward movement from here would concentrate attention on the 37.458 123.6 percent Fibonacci extension.
Last week, the US dollar’s movement versus the Singapore dollar lacked significant direction. The increase in USD/SGD is still present, providing a slight tilt to the higher. There are a few early reversal warning indicators, however.
This past week, the US dollar’s recent advances against the Indonesian rupiah could not continue. USD/IDR is still just over September 2020 highs, which seems to be acting as immediate support. Although a Shooting Star candlestick pattern is still there, there hasn’t been any negative movement. The negative RSI divergence is still present.
Japanese Yen Drops to New Lows Against US Dollar While Maintaining Strength Against Euro
The USD/JPY exchange rate is rising, reaching a 24-year high last week at 139.39. The price has pushed against an ascending trend line and is still trending higher highs and higher lows.
The price is above all short-, medium-, and long-term simple moving averages (SMA), indicating that bullish momentum is still present. The positive gradients present in each SMA provide credence to this viewpoint.
Based on a 21-day simple moving average (SMA), the price movement near the Bollinger Band may operate as a possible headwind. The upper band was crossed by the peak on Thursday and has since closed outside of it. Since then, it has closed back within the band, pointing to bullishness and perhaps a short-term turn.
Support might be found at the most recent lows of 136.48, 134.75, and 134.27, or even lower, between 131.25 and 131.50, where two break points and a prior low are located. The most recent top at 139.39 or the ascending trend line, which is now at 139.50, might serve as resistance.
The British pound gains ground ahead of the CPI. Dominance by USD to Continue?
The British pound gained Monday in Asia as risk sentiment increased after Friday’s bullish lead on Wall Street. Despite this, the GBP/USD currency pair is still in a downturn, much like many other markets, as the US Dollar remains strong overall.
Next today’s employment report, the UK will see CPI the following day, which is forecasted by a Bloomberg poll to be an unsettling 9.1 percent year-over-year. On August 4, the Bank of England will meet to determine how much to raise interest rates.
All the main market indexes rose during the positive APAC session. On the strength of potential stimulus signaled in China, the Hang Seng Index (HSI) in Hong Kong increased by more than 2.5 percent. US market futures indicate that the cash session is off to a good start.
The WTI and Brent crude oil futures contracts are trading at close to US$ 98 bbl and US$ 102 bbl, respectively, indicating that commodity markets are generally higher. At the time of publication, the price of gold is somewhat higher at US$1716 per ounce. The commodity-related currencies AUD, CAD, NOK, and NZD, have increased today.
Housing starts data for Canada will be published, while US Treasury International Capital (TIC) statistics will show capital inflows and outflows.
This week, attention will also be paid to US bank results.
Silver price analysis: XAG/USD bulls are waiting for a move through the $19.00 heavy barrier
On Monday, silver had a modest upward movement for the second straight day and moved farther away from a two-year low, which was reached last week at the $18.15 area. Through the early European session, the white metal held onto its tiny gains, and at the time of writing, it was trading just below the $19.00 round mark.
Technically, the $18.90–$19.00 region denotes a short-term trading range support breakpoint and now coincides with the 4-hour chart’s 50-period SMA. A short-covering move that moves the XAG/USD back into the $19.45–$19.50 supply zone might be sparked by further momentum above.
Although they have just retreated from the oversold region on the daily chart, technical indicators are still very negative. This, in turn, implies that the alleged comeback towards the barrier above may still be seen as a buying opportunity and eventually fizzle out.
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