Market Update - 24 July 2023

EUR/USD stays defensive at the lowest levels in eight days after snapping three-week uptrend. Three-month-old horizontal support zone challenges Euro sellers as MACD signals suggest easing bearish bias. Immediate descending trend line, 50-SMA restricts EUR/USD recovery before the multi-month high marked the last week. A slew of technical levels stand tall to challenge Euro bears beyond 1.0920 level. (FXStreet)

USD/JPY consolidates its recent gains above the 141.50 mark heading into the European session. The critical resistance zone is located at 141.95–142.00; 140.85 acts as an immediate support level. The Relative Strength Index (RSI) stands above 50, indicating bullish territory. (FXStreet)

GBP/USD meets with a fresh supply on Monday and drifts lower through the early European session. The disappointing UK PMIs reaffirm bets for a less aggressive BoE and weigh on the British Pound. The downside seems limited as the focus remains glued to the crucial BoJ policy decision on Friday. (FXStreet)

AUD/USD has gauged temporary support near 0.6720 amid a cautious market mood. The Fed is expected to resume its rate-hike cycle after a skip in June. The RBA could borrow some more time for pausing the policy-tightening cycle if second-quarter inflation softens significantly. (FXStreet)

The index extends its upside momentum above 101.00. Softer-than-expected PMIs hurt the euro on Monday. Flash PMIs, Chicago Fed National Activity Index next on tap. The greenback, in terms of the USD Index (DXY), extends the recovery further north of 101.00 the figure at the beginning of the week. (FXStreet)

USD/CAD remains confined in a narrow trading band around 1.3220. USD/CAD holds above the 50- and 100-hour EMAs, which means further upside looks favorable. The pair will meet the immediate resistance level of 1.3230; 1.3200 is a critical support level. (FXStreet)

USD/CHF grinds near intraday high, reverses Friday’s U-turn from one-week high. CFTC data suggests bearish US Dollar bets jump to record high. US statistics flag fears of Fed policy pivot despite lifting greenback from 15-month low in the last week. First readings of US S&P Global PMIs for July will direct intraday moves, Fed announcements, US Q2 GDP are crucial. (FXStreet)

GBP/JPY lacks a firm intraday direction and oscillates in a range during the Asian session. Reports that the BoJ will stick to its dovish stance weigh on the JPY and lend some support. Reduced bets for more aggressive BoE rate hikes cap any meaningful upside for the cross. (FXStreet)

NZD/USD struggles to defend the corrective bounce off two-week low. Key support line break, sustained trading below 200-SMA favor Kiwi pair sellers to aim for two-month-old rising trend line. Oversold RSI provides headwind to immediate declines but bearish MACD signals join technical breakdowns to favour bears. (FXStreet)

EUR/GBP meets with heavy supply in reaction to the dismal Euro Zone PMI prints for July. The weaker data eases pressure on the ECB to hike rates further and weighs on the Euro. Diminishing odds for a more aggressive BoE cap gains for the GBP and could limit losses. (FXStreet)

EUR/JPY meets with some supply on Monday and is pressured by a modest JPY strength. The occurrence of a negative RSI divergence on the daily chart prompts technical selling. Bulls need to wait for a sustained strength above the 158.00 mark before placing fresh bets. (FXStreet)

WTI prices kept the optimism well in place in the second half of last week. Friday’s gains were on the back of rising open interest and leave the door open to further upside in the very near term. Against that, the immediate target remains at the July peaks past the $77.00 mark per barrel for the time being. (FXStreet)

Natural Gas holds lower ground near intraday bottom after reversing from two-week high. Bearish moving average crossover, downbeat oscillators favor XNG/USD sellers. Natural Gas recovery appears elusive below $2.80; $2.62 appears a tough nut to crack for sellers. (FXStreet)

Gold prices dropped for the third session in a row at the end of last week. The continuation of the weekly decline was on the back of shrinking open interest and volume, which removes strength from further losses in the very near term. In the meantime, there is still decent contention around the weekly at $1945 per troy ounce (July 17). (FXStreet)

Silver finds support near mid-$24.00s and reverses an intraday dip to over a one-week low. The mixed oscillators on daily/hourly charts warrant caution for aggressive bullish traders. A convincing break below the 200-day SMA is needed to negate the near-term positive bias. (FXStreet)

Source: FXStreet, DailyFX

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