Forex Daily Recap – Powell Avoided Commenting on Monetary Policy Outlook

USD Index

The Greenback kept the tempo high as Fed’s Chair Powell didn’t comment on the monetary policy outlook of the State today. In the meantime, White House Economic Advisor Larry Kudlow said that Powell’s job is safe at the moment. Also, President Trump had quite a few times urged the Central Bank to come up with a rate cut and not a rate hike. On the backdrop such a tensed scenario, the US Dollar Index remained uplifted, maintaining its 12-day old ascending trend channel.

Notably, the sturdy 97.60 resistance line ensured to keep the bulls under control. The RSI had already crossed the 70 level benchmark, revealing strong buyer power. At around 14:00 GMT, the May JOLTS Job Opening report came out. The market had expected 7.470 million. Somehow, the actual figures recorded 7.323 million missing estimates.

EUR/USD

Fiber continued to move south, forming a falling wedge trading pattern. On the formation of such a pattern, traders expected a bullish trend in the upcoming sessions. Anyhow, the market failed to witness any such reversal price actions in the EUR/USD pair chart today. A slight upliftment in the Euro pair got rebounded on hitting 1.1212 resistance mark. Even an unbeaten march above that point would have enabled it to challenge the overhead SMA conflux. The conflux consisted of all the major SMAs. Amongst them, the near-term 50-day SMA was heading to move beneath the EUR/USD pair.

Nevertheless, the Relative Strength Index (RSI) dropped to a lower mark of 29.48 levels, showing a strong seller dominance.

On the economic docket, there remained hardly any significant event capable enough to move the pair. Anyhow, the low-volatile below-the-estimated Italian May Retail figures kept the bears entertained.

USD/CHF

On a broader scale, the Swiss Franc pair continued to maintain an excellent upward rally. The USD/CHF pair had ensured to take intermediate halts at the 13-day old slanted ascending support line. However, earlier today, the USD/CHF pair was taking rounds near the 0.9950 level.

The pair started losing ground post-05:45 GMT, reaching near 0.9925 mark. This immediate fall in the pair came after the release of Switzerland June MoM Unemployment Rate. The consensus had estimated the figures to remain in-line with the previous 2.4%. But, the actual Unemployment data reported 2.3%, 0.1% lower than the market hopes. As a result, the over-bought RSI appeared to play its role dragging down the pair towards the aforementioned slanted support line.

USD/CAD

The Loonie pair opened up on Tuesday’s trading session near 1.3102 level and remained quite silent in the early hours. Certainly, from that point, the pair gathered some good momentum, taking the pair near 1.3134 level in the Asian session. During the day, the USD/CAD pair attempted multiple times to breach the robust 1.3138 resistance mark, but efforts went in vain.

On the downside, the significant 200-day SMA and near-term 50-day SMA appeared to stay converged. Such a position of the Moving Averages signified the sustainability of a positive trend in the upcoming sessions. Meantime, on the Canadian front, the June YoY Housing Starts published 35.7K above estimates. However, the May MoM Building Permits came around -13.0% over -2.5% forecasts, disappointing the Loonie traders.