Despite a bullish tone for the US Dollar through July (and over the past week) versus the major commodity currencies; the Canadian, New Zealand and Australian Dollars, a more hesitant, erratic consolidation theme has been more dominant for the US currency versus the Euro, The British Pound and the Japanese Yen.
Here we look at EURUSD, GBPUSD and USDJPY to highlight likely directional biases through late July and into early August.
- A nudge below a key support last week at 1.0819.
- But the subsequent rebound from just below (from 1.0807) leaves a more indecisive tone.
- We do see bias for a further consolidation (maybe still higher) early this week towards 1.1197/1.1216.
- However, we see risk for a late July/ early August bear break through 1.0819/07.
- A break of 1. 0807 aims lower for targets at 1.0658, 1.0520 and 1.0459.
Daily EURUSD Chart
2 Hour EURUSD Chart
- The stall last week back from the 1.5671/76 resistance area leaves a downside bias for Monday.
- However, the previous July rally from our 1.5327 retrace support leaves an upside risk for latter July/ early August.
- For late July/ early August we see a bullish rebound bias for 1.5671/76 and 1.5789.
- Threat above is then to 1.5930, 1.6000 and 1.6182/88.
Daily GBPUSD Chart
2 Hour GBPUSD Chart
- Another dip and another rebound from just ahead of 123.54 support late last week to reject correction tone and leave the bias early this week for a push back higher to 124.44/48.
- We still favour a July bullish resolution, above 124.48.
- Through 124.48 aims higher for 125.85 and 129.08 targets
Daily USDJPY Chart
2 Hour USDJPY Chart