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4 Global Market Updates- 28 July, 2022

In this article, we have covered the highlights of global market news about the Crude Oil Prices, Copper Price, USD/JPY and AUD/USD.
Crude Oil Futures: Is a corrective fall coming?

In light of the advanced prints released by CME Group for crude oil futures markets on Wednesday, market participants reduced their open interest holdings by roughly 5,000 contracts. This was the second consecutive day in which open interest decreased. On the other side, volume increased for the second session in a row, this time by more than 61 thousand contracts altogether.

On Wednesday, prices for WTI showed respectable increases. On the other hand, the increase stalled out just in front of the significant $100.00 level, followed by a reduction in open interest, hinting at the possibility that a possible corrective move may be forming shortly. A decisive violation of the 200-day simple moving average, now at $94.95, might trigger a more severe loss, with the low for July sitting at $90.58. (July 14).

Copper pricing anticipates an auction over $3.50 as DXY declines and demand forecast picks up speed.

According to the COMEX Futures, copper prices have shown a robust increase as the U.S. dollar index (DXY) has changed into a downward trajectory. This is because the U.S. dollar is becoming less valuable. The price of the basic metal has not yet broken through the critical barrier of $3.50; nevertheless, it is anticipated that it will do so in a short amount of time.

The U.S. Dollar Index (DXY) saw a significant decline on Wednesday as the Federal Reserve (Fed) released a more hawkish statement than was anticipated during its monetary policy meeting. Jerome Powell, the head of the Federal Reserve, announced a rate increase of 75 basis points (bps) and offered a goal for interest rates to be within 3.5 percent by the end of 2022. Following the announcement of a rate increase of 75 basis points (bps), the current interest rates are between 2.25 and 2.50 percent.

Price
USD/JPY Price Analysis: Bears hail monthly support break below 135.50

Bears on the USD/JPY pair are holding firm around 135.30 as they celebrate a break to the downside of an ascending trend line drawn on June 23 going into Thursday’s Asian session.

In doing so, the yen pair validates the U-turn that occurred the day before from a horizontal resistance that has been in place for over two weeks, centered around 137.40. In addition, a falling RSI (14), which indicates that the market is not oversold, gives USD/JPY bears reason for optimism.

In light of this, the current price is falling closer to the 38.2 percent Fibonacci retracement of the May-July upside, located close to 134.35.

After that, the 50-day moving average level at 134.15 might provide a test to USD/JPY bears before leading them to the swing low in the middle of June, which was 131.50.

Alternately, the support-turned-resistance line, which at the time of publication was sitting around 135.90, is positioned in front of the 136.00 level to act as a barrier to any short-term USD/JPY rebound.

AUD/USD: Bets on a jump to 0.7040 are increasing – UOB

According to F.X. Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, in light of recent price activity, the AUD/USD pair may now revisit the 0.7040 level in the coming weeks.

24-hour view: The significant increase in the AUD to 0.7012 during the N.Y. session looks to have been exaggerated, and it is doubtful that the AUD will rise much more. Today, it is more probable that the AUD will trade between 0.6965 and 0.7020.

The following statement will be made during the next three weeks: “Despite the reasonably robust increase in AUD yesterday, rising momentum has not improved by much.” There is room for the AUD to continue its rise to the 0.7040 level. At this juncture, the likelihood of a rise in AUD prices to the next level of resistance at 0.7070 is low. A violation on the downside of 0.6935, considered a level of “solid support,” would signal that the present rising pressure has lessened.

Please click here for the Market News Updates from July 27, 2022.

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