Forex trading plan for July 8
USD Index jumped above the 97 mark on Tuesday as the Greek issue leaves the market worried. For now, no decision on Greece has been made. Another risk factor for the market is the Chinese stock market collapse. Investors are seeking the safe currencies, such as the US dollar and the yen.
EUR/USD fell to 1.0910 amid the increased uncertainty. The market is trying to fix below the important support at 1.1050. We could see a quick drop to 1.0820 if no solution is found on the Tuesday’s EU summit. Euro zone’s economic calendar is empty until the end of the week, so all eyes on Greece and on the US data.
GBP/USD followed the euro, slipping to 1.5420. Road to 1.5200 is now open, resistance lies at 1.5500. UK manufacturing figures added to the market pessimism on Tuesday. On Wednesday UK will release its’ renewed annual budget.
AUD/USD is testing fresh 6-year lows around 0.7400. Reserve Bank of Australia left monetary policy unchanged today. However, the Chinese stock collapse and the falling iron ore prices make us believe a rate cut is yet to come. We target 0.7000 in the coming weeks.
USD/JPY returned to the 122.00 as investors are in love with the safe assets today. Support is seen at – 121.80. Be careful – the Bank of Japan is not interested in an excessive yen’s strength. Resistance – 123.40.
Watch the FOMC meeting minutes on Wednesday at 18:00 GMT. The release will likely influence the market.