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31.07.2020

EUR/JPY: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is the upper border of the cloud (123.46). The closest resistance level is Tenkan-sen line (125.00).

AUD/CAD: Ichimoku clouds

Let's look at the four-hour chart. Tenkan-sen line is above Kijun-sen, both lines are directed upwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Kijun-sen line (0.9608). One of the previous maximums of Chikou Span line is expected to be a resistance level (0.9800).

Cryptocurrency Market Review

This week, the cryptocurrency market was actively growing, and only on Friday, the strengthening of quotations slowed down. Currently, Bitcoin is trading at 11135.00 (+11.1%), Ethereum is at 337.00 (+8.4%), Ripple, which again regained its third place in terms of capitalization, is trading at 0.2440 (+13.9%), Tether is around 1.0019 (+0.04%), and Bitcoin Cash is around 291.00 (+18.2%). The total market capitalization has grown from $300 billion to $329 billion. The share of Bitcoin in the market increased to 62.2%.

Gross Domestic Product. EU, 11:00 (GMT+2)

At 11:00 (GMT+2), preliminary data on the euro area's GDP in Q2 2020 will be released. The GDP is the main indicator reflecting the state of the national economy. It takes into account domestic consumption, investment, government spending and exports. The European economy is expected to decline by 11.2% on a quarterly basis and by 13.9% on an annualized basis. The implementation of the forecast can put pressure on EUR.

Consumer Price Index. EU, 11:00 (GMT+2)

Preliminary data on the euro area's Consumer Price Index for July are due at 11:00 (GMT+2). It is the main indicator of inflation in the country and determines the change in the level of retail prices for a particular basket of goods and services: food, transportation, utilities, healthcare, etc. It has a significant impact on monetary policy decisions. The CPI is expected to decline from 0.3% to 0.2% on an annualized basis. The implementation of the forecast can put pressure on EUR.

Morning Market Review

EUR is actively rising against USD during today's Asian session, hitting record highs since May 2018. The instrument is gaining about 0.35% and is testing the important resistance at 1.1900 for a breakout. The next "bullish" impulse was triggered by the publication of annual US GDP data for Q2 2020. The US economy contracted by a record 32.9% YoY, slowing down from -5% YoY in the previous period. The market forecasts assumed an even more significant decline by 34.1% YoY. It should be noted that these figures do not reflect the real situation in the American economy, but they undoubtedly had their effect. In particular, just a few hours after the publication of the data, Donald Trump on Twitter made a proposal to postpone the presidential elections. In turn, EUR came under pressure from weak data from Germany. German GDP in Q2 2020 decreased by 10.1% QoQ and by 11.7% YoY, which turned out to be worse than forecasts of –9% QoQ and –10.9% YoY.