Nasdaq Drops 1% as Stock Markets Feel Early Week Pressure.

Asian Bourses Brace for Negative Start Amidst US Market Decline

Asian bourses are expected to mirror the negative sentiment that plagued the US markets at the end of last week, setting a somber tone for the week ahead. The tech-heavy Nasdaq, in particular, experienced significant movement, closing down by 1.01%. Closing figures for the major US indices showed a downward trend as well, with the Dow down 0.65%, the S&P down 0.77%, and the S&P down 1.01%. In currency markets, the USDJPY stood out as one of the noteworthy trades, nearly reaching the 144.00 mark. The US dollar displayed strength throughout the day, with the DXY climbing 0.47% as traders sought its safe-haven characteristics. However, US treasury yields experienced a decline, with the benchmark 10-year sliding by 6.2 basis points in the afternoon.

Upcoming Data Releases and Central Bank News

As the new week begins, the macroeconomic calendar indicates a relatively calm start in terms of data releases. The negative performance on Wall Street is not expected to have a substantial impact on the mood of Asian markets. Traders anticipate a decline in risk trades. The German IFO figure, which may not possess the same significance it once did, still has the potential to impact the Euro. This data release will kickstart the week for the European market, with an expected reading of 90.7. SNB Chair Thomas Jordan is scheduled to speak later in the session, following a 25bps boost last week. While no major data releases are anticipated during the North American session, ECB President Lagarde will address the market.

Insight into the Asian Session

The Bank of Japan (BOJ) released its Summary of Opinions, asserting the reasonableness of maintaining the current monetary easing. The BOJ highlighted the importance of wage growth in achieving sustainable price objectives and emphasized that smaller businesses are prepared to raise wages and increase investments, signaling that it is premature to adjust policy. Additionally, the BOJ recognized the need to monitor side effects, as long-term price risks remain skewed to the downside.

Implications for the Europe & US Session

The Dollar Index (DXY) appears poised to challenge the throwback support level at 102.30. A successful defense could trigger a bullish reaction, propelling it to 102.60. Conversely, if the bulls fail to repel the bearish pressure, a sharp decline toward 102.00 is likely.

The Dollar Index (DXY)

Key News Events Today

No major news events.

What Can We Expect from DXY Today?

There are no significant news stories directly impacting the USD today. However, the Flash Manufacturing PMI for the USD indicates a decline in the manufacturing sector, with a reported figure of 46.3. The anticipated PMI stood at 48.6, while the previous PMI was 48.4. On the other hand, the Flash Services PMI for the USD exhibited expansion in the services sector, with a value of 54.1. The previous PMI stood at 54.9, while the predicted PMI was 53.9.

Central Bank Notes:

• The federal funds rate target range will be 5 to 5-1/4 percent.
• The Committee is strongly committed to returning inflation to its 2% target.
• The Committee will adjust monetary policy if risks emerge that could hinder achieving its goals.
• Various factors will be considered, including labor market conditions, inflation pressures, inflation expectations, and international and financial developments.
• The next meeting is scheduled for July 26, 2023.

Next 24 Hours Bias

Mixed

Gold (XAU)

Key News Events Today

No major news events.

What Can We Expect from Gold Today?

The lower US manufacturing PMI may weaken the USD, potentially impacting the price of gold. However, the improved services PMI could strengthen the USD, exerting negative pressure on the price of gold.

Next 24 Hours Bias

Mixed

Oil

Key News Events Today

No major news events.

What Can We Expect from Oil Today?

The aggressive monetary policies of central banks raise concerns about the global economy. Possible outcomes of this trend include lower oil prices, reduced production, and increased market uncertainty.

Next 24 Hours Bias

Weak Bearish

Global Market Overview

Asian Stock Markets

• Nikkei: -0.25%
• Shanghai Composite: -1.48%
• Hang Seng: -0.51%
• ASX: -0.29%

European Equities

• DAX futures: -0.21%
• CAC 40: -0.04%
• FTSE: -0.30%

US Stock Market

• Dow Jones: -0.65%
• S&P 500: -0.77%
• Nasdaq 100: -1.01%

Commodities

• Gold: $1931.41 (+0.59%)
• Silver: $22.76 (+1.65%)
• Brent Oil: $74.29 (+0.50%)
• WTI Oil: $69.47 (+0.45%)

News & Data

• (GBP) German Ifo Business Climate Index (Jun) Actual: 88.5, Forecast: 90.7, Previous: 91.7 (13:30)
• (CAD) Wholesale Sales (MoM) Previous: -1.4% (18:00)
• (CAD) Manufacturing Sales (MoM) Previous: 0.3% (18:00)
• (EUR) ECB President Lagarde Speaks (23:00)

GBPUSD: Bullish Momentum Supported by Ascending Trend Line

Introduction

In the GBP/USD chart, the price is currently positioned above a significant ascending trend line, indicating strong bullish momentum and the potential for further upward movement.

Retreat Support and Fibonacci Retracement Strengthen First Support Level

Heading 1: Support Level at 1.2677 Offers Positive Recovery

The first support level at 1.2677 serves as retreat support and is further reinforced by the presence of the 23.60% Fibonacci Retracement. This level shows potential for a positive recovery in price.

Heading 2: Swing Low Support at 1.2540 Adds Stability to Support Zone

The second support level, located at 1.2540, functions as a swing low support and contributes to the overall stability of the support zone.

Overlap Obstacle and Fibonacci Projection as Resistance Levels

Overlap Obstacle at 1.2765 Impedes Further Price Growth

The first resistance level at 1.2765 acts as an overlap obstacle on the upside, potentially hindering the additional upward movement of the price.

Pullback Resistance at 1.2966 Coincides with Fibonacci Projection

A further intermediate resistance level at 1.2966 serves as a pullback resistance and aligns with the 78.60% Fibonacci projection, making it a significant level to watch.

Trade Suggestion: Buying Opportunity

Considering the current market conditions, a trade suggestion is to buy at 1.2726, set a take profit (TP) level at 1.2761, and establish a stop loss (SL) level at 1.2697.

EURUSD: Neutral Momentum with Price Fluctuation Possibility

Introduction

The overall momentum in the EUR/USD chart is currently neutral, indicating a lack of clear market direction.

Multi-Swing Low Support and Fibonacci Projection as Support and Resistance Levels

Multi-Swing Low Support at 1.0893

The first support level at 1.0893 serves as a multi-swing low support and gains strength from the presence of the 78.60% Fibonacci Projection. It presents the possibility of price fluctuation.

Multi-Swing High Resistance at 1.0947

The first resistance level at 1.0947 acts as a multi-swing high resistance and coincides with the 78.60% Fibonacci Retracement. It offers another potential point of price fluctuation.

Additional Support and Resistance Levels

Second Support Level at 1.0861

The second support level at 1.0861 also functions as a multi-swing low support, further solidifying the importance of the support zone.

Swing High Obstacle at 1.0992

On the upside, the second resistance level at 1.0992 serves as a swing-high obstacle, potentially limiting price growth.

Trade Suggestion: Buying Opportunity

A trade suggestion for the current market conditions is to buy at 1.0914, set a take profit (TP) level at 1.0959, and establish a stop loss (SL) level at 1.0875.

AUDUSD: Bearish Momentum Indicates Potential Market Decline

Introduction

The AUD/USD chart shows bearish momentum, suggesting the possibility of further market decline.

Bearish Continuation towards Pullback and Swing Low Supports

Pullback Support at 0.6674

A bearish continuation towards the first support level at 0.6674, designated as a pullback support, is plausible in the current market conditions.

Swing Low Support at 0.6639

The second support level at 0.6639 also acts as a swing low support, adding additional strength to the support zone.

Overlap and Intermediate Resistances as Potential Barriers

Overlap Resistance at 0.6743

On the upside, an overlap resistance at the first resistance level of 0.6743 has the potential to impede upward advancement.

Retreat Resistance at 0.6793

Additionally, an intermediate resistance around 0.6793, acting as a retreat resistance, poses a challenge for upward price development.

Trade Suggestion: Selling Opportunity

Considering the bearish market momentum, a trade suggestion is to sell at 0.6674, set a take profit (TP) level at 0.6649, and establish a stop loss (SL) level at 0.6694.

USDJPY: Ascending Trend Line Indicates Possible Upward Movement

Introduction

The price in the USD/JPY chart is currently situated above a significant ascending trend line, suggesting the potential for further upward movement.

Bullish Extension toward Resistance Levels

Pullback Barrier at 143.85

A bullish extension into the first resistance level at 143.85, acting as a pullback barrier, is a conceivable scenario in the current market conditions.

Swing High Resistance at 144.83

The second resistance level at 144.83 also functions as a swing-high resistance, adding to its significance as a potential barrier.

Retreat and Overlap Supports as Strength in the Support Zone

Retreat Support at 142.90

On the downside, the first support level at 142.90 serves as retreat support, providing considerable strength to the support zone.

Overlap Support at 140.94

The second support level at 140.94 acts as an overlap support, highlighting the importance of an additional support level.

Trade Suggestion: Buying Opportunity

Based on the current market conditions, a trade suggestion is to buy at 143.22, set a take profit (TP) level at 143.85, and establish a stop loss (SL) level at 142.77.

S&P 500: Bullish Trend Supported by Rising Trend Line

Introduction

Two factors indicate a bullish trend in the US500 (S&P 500) chart. Firstly, the price is currently above the bullish Ichimoku cloud, signaling a bullish market sentiment. Secondly, it remains above a significant rising trend line, suggesting the potential for further upward movement.

Price Bounce and Fluctuation between Support and Resistance Levels

Temporary Fall towards 1st Support Level at 4380.7

Before the price bounces off, there is a possibility of a temporary fall toward the first support level at 4380.7.

Key Entry Level at 4380.7

As a pullback support, the first support level at 4380.7 offers a key level where buyers may enter the market.

Additional Retreat Support at 4324.4

Another retreat support level is the second support level at 4324.4, strengthened by the 38.20% Fibonacci Retracement.

Swing High Resistance at 4427.7

On the upside, the first resistance level at 4427.7 acts as a swing-high resistance, potentially impeding further upward movement.

Overlap Resistance at 4493.3

The second resistance level, located at 4493.3, also serves as an overlap resistance, adding to its significance as a potential barrier.

Trade Suggestion: Buying Opportunity

Considering the bullish trend and the support and resistance levels, a trade suggestion is to buy at 4351.19, set a take profit (TP) level at 4366.14, and establish a stop loss (SL) level at 4341.02.

WTI CRUDE OIL: Neutral Momentum Indicates Lack of Direction

Introduction

The WTI chart currently displays neutral momentum, indicating a lack of market direction.

Price Range between Support and Resistance Levels

Pullback Support at 67.21

The price could move within the range of the first support level at 67.21 and the first resistance level at 69.73.

Key Entry Level at 67.21

As a swing low support, the first support level at 67.21 offers a point where buyers could enter the market.

Intermediate Support at 64.59

Furthermore, the intermediate support level at 64.59 strengthens the support zone.

Overlap Resistance at 69.73

On the upside, the overlap resistance at the first resistance level of 69.73 may prevent further upward progress.

Additional Overlap Resistance at 73.94

Like the first resistance level, the second resistance level at 73.94 also functions as an overlap resistance, highlighting its importance in preventing price growth.

Trade Suggestion: Selling Opportunity

Considering the neutral momentum and the support and resistance levels, a trade suggestion is to sell at 69.24, set a take profit (TP) level at 67.93, and establish a stop loss (SL) level at 70.49.

GOLD: Bullish Trend Indicates Potential Upward Advance

Introduction

The XAU/USD chart suggests a bullish trend, indicating the potential for an upward advance.

Bullish Bounce and Retreat Supports

Overlap Support at 1904.07

The price might experience a bullish bounce off the first support level at 1904.07, which is overlap support.

Retreat Support at 1859.86

The second support level at 1859.86 serves as retreat support, further strengthening the support zone.

Resistance Levels Impeding Price Growth

Overlap Resistance at 1979.86

On the upside, the first resistance level at 1979.86 provides an overlap resistance, which may impede further price growth.

Overlap Resistance at 1930.91

The intermediate resistance level at 1930.91 also functions as an overlap resistance, heightening its relevance.

Trade Suggestion: Buying Opportunity

Considering the bullish trend and the support and resistance levels, a trade suggestion is to buy at 1932.12, set a take profit (TP) level at 1939.22, and establish a stop loss (SL) level at 1928.45.

ETHEREUM: Bearish Momentum Indicates Potential Decline

Introduction

The market is currently experiencing downward movement, as indicated by the bearish momentum on the ETH/USD chart.

Potential Negative Reaction and Support Levels

Negative Reaction at 1931.97

At the first resistance level of 1931.97, there is a chance of a negative reaction, leading to a potential decline in price.

Retreat Support at 1697.99

The first support level at 1697.99 acts as retreat support and may provide some stability to the price.

Swing Low Support at 1661.84

Additionally, the second support level at 1661.84 serves as a swing low support, adding further strength to the support zone.

Overlap and Intermediate Resistances as Barriers

Overlap Resistance at 1998.89

On the upside, the first resistance level at 1998.89 functions as an overlap resistance, potentially limiting upward movement.

Intermediate Resistance at 2095.36

The second resistance level at 2095.36 serves as an intermediate resistance and may act as a significant barrier.

Trade Suggestion: Selling Opportunity

Considering the bearish momentum and the support and resistance levels, a trade suggestion is to sell at 1867.57, set a take profit (TP) level at 1816.67, and establish a stop loss (SL) level at 1912.07.