We hope that it’s been a rewarding month for you as we close the books on July. Here is a Market Wrap Up to summarise Revelation Trading’s biggest talking points from the past month.
1. Japan’s Geopolitical Uncertainty vs The Weak US Dollar
Japanese politics and abenomics have been constantly iterated issues throughout July as geopolitical uncertainty continues to rise. Though one might expect that the yen will weaken, one must also consider that the dollar hasn’t been doing so well either (see next point). Given the unfortunate situation in Japan, the yen may now bear the brunt of this political tension. Only time will tell if abenomics will continue as highlighted in Revelation Trading’s 24th July Market Update. View the full chart and possible scenarios on TradingView here.
Scaramucci exits from the White House after just 10 days on staff. (Reuters)
2. US Dollar Weakens as Euro, Aussie Dollar & Pound Rises
Over the last few trading days, traders have bore witness to a stronger euro, aussie dollar and pound as the USD trades weaker across the board. This chaos is attributed to the lack of direction from the White house as a result of Scaramucci’s removal, Fed Fischer’s dovish comments and a stronger than expected Eurozone CPI.
3. Reserve Bank of Australia Holds on to Rates
As mentioned early on in the month, Revelation Trading expects that the soft Australian CPI and a dovish Lowe speech should result in the RBA holding pat on their rates for a while longer. 0.8150 is a key level to watch on the weekly chart.
4. Currency Pair to Look Out For – EURUSD
Lastly, here’s a tip moving forward in the month of August. EURUSD is also approaching an area of resistance between 1.1810 to 1.19. Two probable scenarios may take place at this juncture: A drop may occur with a test of 1.155 and 1.47, or alternatively surpassing 1.19 may revisit long forgotten levels at 1.2430. Stay with us in the days to come for more updates on this and more.
The Revelation Trading Team