Forex Daily Recap – USD/CNY Kept Hold of 7 Mark Amid Strong Trade Data

Even today, the sturdy 97.60 resistance handle continued to cap Greenback’s daily gains. ECB mentioned in today’s Economic Bulletin that the US-China trade war would affect the growth of Eurozone.
Nikhil Khandelwal
Banknotes
Banknotes

USD/CNY

Chinese Yuan pair kept a hold on the seven high mark for four days in a row. Today, in the middle of Chinese Trade data releases, the USD/CNY touched the daily high near 7.0442 levels. The pair continued to sustain top levels, staying above the Green Ichimoku Clouds, further strengthening the bulls. Also, a two-and-a-half-month old slanting ascending support line provided additional support to the resilient USD/CNY pair. However, at any point, the overbought RSI could have played its role in dragging down the pair.

USDCNY 1 Day 08 August 2019

Notably, the Chinese July Trade Balance rose $5.06 billion above the market hopes of around $40.00 billion estimates. The July YoY Exports reported +3.3% over -2.0% forecasts. Also, the July YoY Imports jumped 1.7% this time over the prior -7.3%. As per logic, the Chinese pair should have undergone a sharp pullback in the backdrop of strong trade data. Nevertheless, the traders ignored the positive trade data and continued to keep the positions unsold, allowing the gains to remain untapped.

US Dollar Index

Even today, the sturdy 97.60 resistance handle continued to cap Greenback’s daily gains. Also, the Relative Strength Index (RSI) remained stuck near 48/50 levels. However, any triumphant march above the aforementioned resistance would have enabled another resistance stalled near 97.82 level. On the downside, a strong support confluence made up of 50-day & 100-day SMA stood as the substantial barrier. Also, a more-than-a-month old slanting ascending support line ensured to limit pair’s daily losses.

US Dollar Index 1 Day 08 August 2019

Meantime, on the US economic docket, traders witnessed mixed data releases today. The Continuing Jobless Claims computed since July 26 reported 6K below the market expectations of around 1.690 million. Also, the Initial Jobless Claims calculated since August 2 came out 209K over 215K forecasts. However, the Initial Jobless Claims 4-week average reported downbeat data, recording 212.250K in comparison to 211.845K market hopes. Quite surprisingly, the USD Index appeared to shrug over the upbeat data releases and react over the downbeat Jobless data. In the meanwhile, the June Wholesale Inventories recorded 0.0% lower than the consensus estimates of 0.2%.

EUR/USD

The fiber was struggling to march above 1.1204 handle since the last four trading sessions and continued to perform the same on Thursday. Anyhow, the EUR/USD pair had already breached above a major counter trendline, luring the buyers. On the upper side, two resistances remained stable near 1.1252 and 1.1283 levels. Any price actions to the lower side would have enabled fresh challenge to firm supports handles near 1.1151 and 1.1116 levels. Needless to say, the RSI was indicating 50 levels, showing neutral buyer interest.

EURUSD 1 Day 08 August 2019

ECB mentioned in today’s Economic Bulletin that the US-China trade war would affect the growth of Eurozone. The Central Bank officials also proclaimed that the scenario would worsen, considering the possibility of a No-Deal Brexit. Laterwards, ECB President Mario Draghi reiterated that the Bank might opt for further ease in the monetary policy in the near term.

USD/JPY

USDJPY 1 Day 08 August 2019

Japanese Yuan pair continued to stay in the lower vicinity of the Bollinger Bands, sustaining a strong downtrend. Today, the July Eco Watchers Survey came out with the Outlook and Current reports. Both the economic data reported below the consensus estimate, discouraging the bulls. However, a healthy multi-month slanting support line kept moving on the south-side in order to prevent any immediate sharp downfalls.

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