![\"support](\"https:\/\/shared.gighl.com\/Morning-Pictures-2020\/7-July-20\/31-07-2020\/eur-usd.PNG\")
<\/p>\nThe USD extended its losses yesterday against its counterparts, as market worries tended to intensify about the prospects of the recovery of the US economy. The USD Index has reached a two-year low, after five weeks of consecutive losses, while GBP and EUR had substantial gains against the USD. Yesterday the US GDP growth rate released for Q2, declined less than expected, but nevertheless showed a contraction not seen since the great depression in peace time, while at the same time the initial jobless claims figure rose slightly, implying that the recovery of the US employment market has hit a halt. The uncertainty intensifies further as disputes within the US Congress about the new fiscal package seem to stall its approval, and the federal jobless benefit of $600 is about to expire today. We expect that any headlines indicating that the two parties are nearing a possible deal about the stimulus could support the USD and vice versa.<\/p>\n
EUR\/USD rallied yesterday breaking consecutively the 1.1790 (S2) and the 1.1850 (S1) resistance lines, both now turned to support, and continued higher aiming for the 1.1910 (R1) resistance line. As the pair has broken the upper boundary of its sideways motion and rallied, we switch our sideways bias in favour of a bullish scenario. However, it should be noted that the RSI indicator below our 4-hour chart, has breached the level of 70, confirming the dominance of the bulls, yet at the same time may imply that the pair\u2019s long position is somewhat overcrowded, and a correction lower nears. Should the bulls maintain control over the pair, we could see EUR\/USD breaking the 1.1910 (R1) resistance line and aim for the 1.1995 (R2) resistance level. Should the bears take over, we could see the pair breaking the 1.1850 (S1) support line and aim for the 1.1790 (S2) support level.<\/p>\n
According to media,\u00a0Apple reported far higher quarterly<\/b>\u00a0revenue than expected as consumers tended to buy new devices during the pandemic, while Amazon posted the biggest profit ever, as online sales surged during the coronavirus pandemic. Big tech companies were among the main gainers from the pandemic as consumers were limited at home and shares of\u00a0Amazon, Facebook, Apple and Alphabet tended to rise in value<\/b>, adding substantially in market cap. It should be noted that the news came one day after the US Congress interrogated the CEO\u2019s of the afore mentioned companies over allegations over power and influence misuse, leaving some mistrust among investors. The better than expected results could create fertile ground for Nasdaq\u2019s rally to restart, as confidence in big tech companies could be restored. Nasdaq rose yesterday, breaking decisively the 10630 (S1) resistance line, now turned to support. We continue to expect the upward direction to be maintained, especially given that the upward trendline incepted since the beginning of April remains the main guide for the index. Should the bulls maintain control over Nasdaq\u2019s direction ,we could see the index breaking the 10845 (R1) resistance line and aim if not also break the 11000 (R2) resistance level, in search of higher grounds. Should the bears take over, we could see the index, breaking the 10630 (S1) support level aiming for the 10450 (S2) support level.<\/p>\nOther economic highlights today and early tomorrow<\/h3>\n
On a busy Friday, during the European session, we get France\u2019s preliminary GDP growth rate for Q2, Germanys\u2019 retail sales for June, UK\u2019s nationwide house prices for July, France\u2019s preliminary CPI (EU Normalised) rate for July, Eurozone\u2019s preliminary HICP rate for July and Eurozone\u2019s preliminary GDP growth rate for Q2. In the American session, we get the US consumption rate for June, Canada\u2019s GDP growth rate for May, the final US University of Michigan consumer sentiment for July and also from the US the Baker Hughes weekly oil rig count. During Monday\u2019s Asian session, we note the release of Japan\u2019s final Jibun manufacturing PMI for July and China\u2019s Caixin manufacturing PMI for July.<\/p>\n
EUR\/USD 4 Hour Chart<\/b><\/p>\n
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Support: 1.1850 (S1), 1.1790 (S2), 1.1720 (S3)
\nResistance: 1.1910 (R1), 1.1995 (R2), 1.2070 (R3)<\/p>\n
US 100 Index-Nasdaq 4 Hour Chart<\/b><\/p>\n
![\"support](\"https:\/\/shared.gighl.com\/Morning-Pictures-2020\/7-July-20\/31-07-2020\/us100.PNG\")
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Support: 10630 (S1), 10450 (S2), 10275 (S3)
\nResistance: 10845 (R1), 11000 (R2), 11200 (R3)<\/p>\n
![\"benchmark-31-07-2020\"](\"https:\/\/shared.gighl.com\/Morning-Pictures-2020\/7-July-20\/31-07-2020\/benchmark.JPG\")
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![\"table-31-07-2020\"](\"https:\/\/shared.gighl.com\/Morning-Pictures-2020\/7-July-20\/31-07-2020\/table.JPG\")
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![\"morning-releases-31-07-2020\"](\"https:\/\/shared.gighl.com\/Morning-Pictures-2020\/7-July-20\/31-07-2020\/morning-releases.JPG\")
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Disclaimer:<\/p>\n
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.<\/i><\/p>","protected":false},"excerpt":{"rendered":"
The USD extended its losses yesterday against its counterparts, as market worries tended to intensify about the prospects of the<\/p>","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_daim_seo_power":"","_daim_enable_ail":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-15023","post","type-post","status-publish","format-standard","hentry","category-uncategorized","blog-category-financial-news","entry"],"acf":[],"yoast_head":"\n