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For the 24 hours to 23:00 GMT, the GBP declined 0.46% against the USD and closed at 1.2461.

In the Asian session, at GMT0300, the pair is trading at 1.2454, with the GBP trading 0.06% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2424, and a fall through could take it to the next support level of 1.2395. The pair is expected to find its first resistance at 1.2499, and a rise through could take it to the next resistance level of 1.2545.

Trading trend in the Sterling today, is expected to be determined by UK’s gross domestic product, industrial production, manufacturing production, construction output and trade balance data, all for May, scheduled to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.13% against the JPY and closed at 108.89.

Data revealed that Japan's preliminary machine tool orders tumbled 38.0% on a yearly basis in June, following a drop of 27.3% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 108.89, with the USD trading flat against the JPY from yesterday's close.

The pair is expected to find support at 108.74, and a fall through could take it to the next support level of 108.6. The pair is expected to find its first resistance at 109.01, and a rise through could take it to the next resistance level of 109.14.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD declined 0.05% against the CHF and closed at 0.9937.

In economic news, Switzerland's seasonally adjusted unemployment rate remained unchanged at 2.3% in June, defying market expectations for an advance to 2.4%.

In the Asian session, at GMT0300, the pair is trading at 0.9933, with the USD trading marginally lower against the CHF from yesterday's close.

The pair is expected to find support at 0.9920, and a fall through could take it to the next support level of 0.9907. The pair is expected to find its first resistance at 0.9949, and a rise through could take it to the next resistance level of 0.9965.

With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further direction.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.21% against the CAD and closed at 1.3127.

On the data front, Canada's seasonally adjusted housing starts rose to a level of 245.7K in June, hitting it highest level since 2007 and following market expectations for an advance to a level of 208.6K. In the previous month, housing starts had registered a revised level of 196.8K. Meanwhile, the nation's building permits plunged 13.0% on a monthly basis in May, more than market expectations for a fall of 10.0%. Building permits had recorded a revised gain of 16.0% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3126, with the USD trading marginally lower against the CAD from yesterday's close.

The pair is expected to find support at 1.3103, and a fall through could take it to the next support level of 1.3079. The pair is expected to find its first resistance at 1.3146, and a rise through could take it to the next resistance level of 1.3165.

Looking ahead, investors would closely monitor the Bank of Canada's interest rate decision, slated to release later in the day.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the AUD declined 0.65% against the USD and closed at 0.6928.

LME Copper prices declined 1.8% or $107.0/MT to $5805.0/MT. Aluminium prices remain flat at $1783.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.6923, with the AUD trading 0.07% lower against the USD from yesterday's close.

Overnight data showed that Australia's Westpac consumer confidence index fell to its lowest level in 2 years by 4.1% on monthly basis, to a level of 96.5 in July. The index had registered a reading of 100.7 in the prior month.

Elsewhere in China, Australia's largest trading partner, the consumer price index (CPI) rose 2.7% on a yearly basis in June, in line with market expectations and compared to a similar rise in the preceding month.

The pair is expected to find support at 0.6907, and a fall through could take it to the next support level of 0.6891. The pair is expected to find its first resistance at 0.6951, and a rise through could take it to the next resistance level of 0.6979.

Going forward, traders would await Australia's consumer inflation expectations for July, set to release overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold rose 0.24% against the USD and closed at USD1399.00 per ounce.

In the Asian session, at GMT0300, the pair is trading at 1396.00, with gold trading 0.21% lower against the USD from yesterday’s close.

The pair is expected to find support at 1388.20, and a fall through could take it to the next support level of 1380.40. The pair is expected to find its first resistance at 1403.10, and a rise through could take it to the next resistance level of 1410.20.

The yellow metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, Silver rose 0.60% against the USD and closed at USD15.13 per ounce, tracking gains in gold prices.

In the Asian session, at GMT0300, the pair is trading at 15.10, with silver trading 0.17% lower against the USD from yesterday’s close.

The pair is expected to find support at 14.99, and a fall through could take it to the next support level of 14.88. The pair is expected to find its first resistance at 15.18, and a rise through could take it to the next resistance level of 15.26.

The white metal is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Crude Oil rose 1.70% against the USD and closed at USD58.49 per barrel, after the American Petroleum Institute (API) reported that US crude oil inventories dropped by 8.1 million barrels to 461.4 million barrels in the week ended 05 July 2019.

In the Asian session, at GMT0300, the pair is trading at 58.67, with oil trading 0.31% higher against the USD from yesterday's close.

The pair is expected to find support at 57.61, and a fall through could take it to the next support level of 56.54. The pair is expected to find its first resistance at 59.42, and a rise through could take it to the next resistance level of 60.16.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

China shares continue losing streak

Markets were holding their collective breaths in the Asian session today, waiting for the first of Fed Chairman Powell’s testimonies on Capitol Hill. Equity markets were mixed, though the majority traded marginally in the red. China shares extended the recent losing run to a seventh day, the longest streak since December 2016, despite reports of a “constructive” restart to US-China trade negotiations by phone. The US30 index slid 0.01% while the NAS100 index extended its stronger close with gains of 0.06%.

China50 Daily Chart

Currencies steady

There wasn’t much activity to talk about in currency markets, though the Aussie underperformed in the G-10 space after disappointing confidence data. Westpac’s index of consumer confidence fell 4.1% in July, accelerating downward from June’s 0.6%. Westpac described the number as “troubling”, especially as it came after a second RBA rate cut, tax relief packages being announced and signs that the housing market might be stabilizing.

The Aussie slid 0.11% versus the US dollar to 0.6920 and 0.07% versus the Japanese yen to 75.36. AUD/USD has now fallen for the past five days and has retraced 1.8% from the July 4 peak after failing to overcome resistance at the 100-day moving average, which is at 0.7025 today.

AUD/USD Daily Chart

Oil extends gains

Oil prices continued yesterday’s bullish theme today, with West Texas Intermediate (WTI) rising 0.48% to $58.55 per barrel. WTI looks set to close above the 55-day moving average at $58.28 for the first time since May 21 while the 100-day moving average at $59.02 could act as the next resistance point.

Weekly stockpiles data to July 5 released by the American Petroleum Institute yesterday showed a drawdown of 8.13 million barrels, an increase on the previous week’s 5 million barrel reduction. This might imply that demand is picking up just as OPEC+ extended the current production cuts. In addition, the National Hurricane Center cautioned that a cyclone may be building over the next 48 hours in the Gulf of Mexico, which could affect supplies.

WTI Daily Chart

Powell to steal the limelight

Aside from Powell’s testimony, the minutes of the last Fed meeting are due to be released, but will no doubt be overshadowed (and updated) by Powell’s testimony. The Bank of Canada is expected to leave rates unchanged at 1.75% at today’s meeting with market pricing now suggesting a near-25% probability of a cut only at the October meeting.

Earlier in the session, the UK reports manufacturing and industrial production data for May, with both expected to show a small rebound from April’s negative number. The goods trade deficit is seen widening to GBP12.55 billion from GBP12.11 billion.

EUR/USD started a major decline and broke the key 1.1280 and 1.1220 support levels. Conversely, USD/CHF climbed higher and it seems like it could soon test 1.0000.

Important Takeaways for EUR/USD and USD/CHF

• The Euro failed to clear the 1.1310 resistance and declined heavily against the US Dollar.
• There is a major bearish trend line forming with resistance near 1.1225 on the hourly chart of EUR/USD.
• USD/CHF remains in a bullish zone and recently broke the 0.9900 resistance area.
• There is a connecting bullish trend line forming with support near 0.9930 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to stay above the 1.1350 level and later struggled to clear the 1.1310 resistance against the US Dollar. The EUR/USD pair started a major decline and broke the 1.1320 and 1.1280 support levels to enter a bearish zone.

During the decline, the pair even broke the 1.1250 pivot level. Finally, there was a close below the 1.1220 level and the 50 hourly simple moving average. The pair traded as low as 1.1193 on FXOpen and it is currently consolidating losses.

It recently broke a short term bearish trend line with resistance near 1.1205 on the hourly chart. An immediate resistance is near the 23.6% Fib retracement level of the last decline from the 1.1287 high to 1.1193 low.

The 50 hourly simple moving average is also near the 1.1212 level to act as a resistance. However, the main resistance is near the 1.1220 and 1.1225 levels. There is also a major bearish trend line forming with resistance near 1.1225 on the hourly chart of EUR/USD.

If there is a break above the 1.1225 resistance, the pair could test the 50% Fib retracement level of the last decline from the 1.1287 high to 1.1193 low.

To move into a positive zone, the pair must climb back above the 1.1250 and 1.1280 resistance levels in the near term. If not, there is a risk of more losses below 1.1200 in the near term.

USD/CHF Technical Analysis

The US Dollar remained in a strong uptrend and climbed above the key 0.9900 pivot level against the Swiss franc. The USD/CHF pair even broke the 0.9940 resistance level before sellers appeared near the 0.9950 resistance.

The pair traded as high as 0.9951 and settled above the 50 hourly simple moving average. At the outset, it is correcting gains below the 0.9940 level plus the 23.6% Fib retracement level of the upward move from the 0.9898 low to 0.9951 high.

On the downside, there is a connecting bullish trend line forming with support near 0.9930 on the hourly chart. If there is a downside break, the pair could test the 0.9920 or 0.9910 support.

Moreover, the 50% Fib retracement level of the upward move from the 0.9898 low to 0.9951 high is also waiting near 0.9918 to act as a support. Therefore, dips from the current levels remain supported above the 0.9900 level.

On the upside, an initial resistance is near the 0.9940 and 0.9950 levels. If USD/CHF continues to rise, it could even test the key 0.9980 and 1.0000 resistance levels in the near term.

Overall, pairs like EUR/USD and GBP/USD are currently struggling, and USD/CHF might continue to climb higher.