Forex Daily Recap – 38.2% Fibo Level Stopped the Ninja Bulls amid G7 Summit

Quite shockingly, the Chinese Yuan pair had dropped to an 11-year low against the USD Index, fearing global economic catastrophe. Anyhow, US President Donald Trump said in the G7 Summit that positive talks with China remain underway. Trump added that China had called the US recently to make a trade deal happen. However, in Beijing, Foreign Ministry spokesman Geng Shuang said he had not heard that a phone call between the two sides had taken place.

Meantime, the June Leading Economic Index remained in line with the market estimates of around 93.3 points. Along with the Economic Index, the June Coincident Index also stood near 100.4 points the same as the previous figures.

US Dollar Index

During the North American session, the Greenback was crossing the center line of the Bollinger Bands, heading to the upper vicinity of the indicator.

Quite notably, the July Non-Defense Capital Goods Orders that excluded Aircraft data release shocked the market participants. The Street analysts had expected this Capital Goods Orders, to report -0.1%. Anyhow, the actual reports recorded 0.4%, pleasing the buyers. Also, the July Durable Goods Orders came out 2.1% over 1.1% forecasts.

Additionally, the August Dallas Fed Manufacturing Business Index also published upbeat reports. Nevertheless, on the technical side, the USD Index was mid-way between either channel of the Bollinger Bands. Anyhow, more-than-a-month-old slanting support line remained stalled on the bottom side, preventing potential downfalls.

EUR/USD

Fiber showcased a steady slump today after making a decisive move yesterday to justify the downtrend channel.

Overhead Parabolic SAR was further restricting the upside, encouraging the bears. However, any move to the north side, crossing the boundary of the aforementioned trend channel then that would immediately activate the above-lying SMA cluster. Interim, G7 Meeting took place in the French coastal resort of Biarritz. Major leaders agreed on a deal to provide $20 million in emergency help to Brazil and its neighbors to stop the Amazon forest fires.

On the economic calendar, the German IFO data releases grabbed market attention in the Asian trading session. Nonetheless, the IFO data reported adverse data, allowing the bears to take control over the pair. German August IFO – Expectations reported 91.3 points over 91.5 points estimates. Also, IFO – Business Climate came out 0.85% below the market hopes of around 95.1 points.

AUD/USD

The Aussie pair bulls were attempting to make some rigorous positive moves today as Trump came up with soft stances on the US-Sino trade war.

Notably, the AUD/USD pair was peeking into the upper region of the Bollinger Bands, looking a strong upward movement. Anyhow, the Relative Strength Index (RSI) remained muted near 40 levels, showing a weak interest among the buyers. Even if the pair finds a way to the upside then the resistance cluster made up of 50-day, 100-day and 200-day SMA would get activated. Interestingly, the AUD/USD pair continued to maintain a choppy performance since the first week of August.