Market Briefing on Tuesday July 12th

EUR/USD gained ground for a second straight trading day on Tuesday, overcoming its hourly 200-period Exponential Moving Average, to reach an intraday high of 1.1126 in early European session, also the highest level since July 5th. At the start of the US session the major pair returned below the 1.1100 mark to trade at 1.1095, up 0.33% on the day. Near-term resistance sits within the 1.1115-1.1125 area and a break above it may expose 1.1169 (50.0% Fibonacci retracement, which reflects the descent from June 24th high to June 24th low) and 1.1184 (July 5th high).

GBP/USD also rose for a second consecutive trading day to hit an intraday high of 1.3188 in mid-European trade. At the start of the US session the pair has pared earlier advance to trade at 1.3150, up 1.22% for the day. Near-term resistance sits at the 1.3200 handle, while a break above it may expose 1.3266 (weekly R1 pivot), 1.3296 (July 5th high) and 1.3318 (23.6% Fibonacci retracement, which reflects the descent from June 24th high to July 6th low and also a 31-year low).

In a testimony on financial stability before the UK Parliament earlier Tuesday, Bank of England Governor, Mark Carney, said that the current GBP exchange rate is helping economy in this present situation, while a further depreciation could help UK economic adjustment and improve the nations current account deficit. According to Carney, the present Sterling level reflects market players perception of risk.

Having touched highs unseen since June 2nd at 1.3139 yesterday, USD/CAD lost ground sharply on Tuesday, reaching an intraday low of 1.3001 in early US trade, as crude oil futures for delivery in August climbed above $46 per barrel. Near-term support sits at 1.2984 (July 8th low) and then at 1.2950. A break below it may expose 1.2907 (the monthly Pivot Point) and 1.2884 (the weekly S1 pivot).

Gold futures for delivery in August were in proximity to the oversold RSI area on the H1 time frame, as the commodity touched an intraday low of $1,345.50 per troy ounce during early US trade. A break and close below $1,342.00 may expose $1,334.10 and then – $1,330.90.

S&P 500 rose to a fresh record-high level after the opening bell on Tuesday at 2,146.29, up 0.43% on the day. Dow Jones 30 Industrial Average also hit an all-time high at 18,352.80, up 0.73% for the day, as energy shares led.