Ultima Markets

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the EURUSD for July 19, 2024. 

Key Takeaways 

• Short-term trend of US dollar: In July, the Philadelphia Fed Manufacturing Index came in higher than expected, indicating resilience in US economy, spurring the demand for greenback and recorded its largest single-day gain since June 20. Later today, Federal Reserve permanent voting member, New York Fed President Williams will deliver his speech with regards to monetary policy. Previously, he commented on the slowdown of inflation which may lead to interest rates cuts in the coming months (but not in the upcoming July meeting).  

• ECB statement: ECB kept its interest rate unchanged yesterday while at the same time, did not provide any new signal with regards to policy. ECB President Lagarde mentioned that rate cut during September meeting is still plausible, emphasizing the downward risks of economy and internal inflationary pressure.  

Technical Analysis 

Daily Chart Insights 

• Stochastic oscillator: The indicator issued bearish signal in the overbought region following prior oscillation. This suggests a substantial bearish bias in the short-term, pushing the pair to thread lower.  

• Price Action: Yesterday’s breakout is deemed to be a false signal as a bearish engulfing candlestick form soon after. With the reversal signal, it is suggested to pay attention to further downside in short-term.  

1-hour Chart Analysis 

• Stochastic oscillator: The indicator continues to oscillate in the oversold region, with the possibility of forming bullish signal in the near term. For the time being, pay attention to an imminent rebound during Asian trading session.  

• Price action: Following prior breakout, EUR/USD is skewed towards the downside for the time being. It is worth paying attention to the main key trend, with the possibility to extend further south after a brief retracement period.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.0925, 

• Bullish Scenario: Bullish sentiment prevails above 1.0925, first target 1.0945, second target 1.0960; 

• Bearish Outlook: In a bearish scenario below 1.0925, first target 1.0875, second target 1.0860. 

Conclusion 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.