USDCHF BREAKS ABOVE BULLISH FLAG AHEAD OF US CONFIDENCE DATA

The British pound declined today even after the relatively strong economic data from the country. The data showed that house prices rose by 13.4% year-on-year in June after rising by 10.9% in the previous month. This was the biggest increase since 2014. In total, the average price of houses in the UK has jumped by almost 30,000 pounds. Further data showed that the lending sector continued to do well in May. In total, mortgage lending increased from £3.03 billion to more than £6.58 billion. The number of mortgage approvals increased from 86.9k to more than 87.55k while net lending to individuals increased to £6.9 billion. The sterling is probably falling because of the rising number of coronavirus cases in the UK.

The euro declined against the US dollar even after the relatively strong Eurozone business and consumer confidence data. According to the European Commission, the industrial sentiment increased from 11.5 to 12.7 in June. This was a better increase than the median estimate of 12.3. Sentiment in the service sector also increased from 11.3 to 17.9. Further, the business and consumer survey increased from 114.5 to 117.9. These numbers are important because highly confident business and individuals lead to more spending.

US futures wavered ahead of the latest consumer confidence data by the Conference Board. Those linked to the Dow Jones rose by 60 points while Nasdaq 100 and S&P 500 were unchanged. The S&P 500 index had its 31st record close on Monday as investors cheered the new ruling on Facebook. The company won an antitrust case brought by the Federal Trade Commission (FTC) and states. The FTC wanted the court to order Facebook to divest its investments in Instagram and Whatsapp. Elsewhere in Europe, the main indices were in the green. The DAX, FTSE 100, and CAC 40 indices rose by more than 0.20%.

EURUSD

The EURUSD pair sell-off continued to decline even after the strong Eurozone confidence data. On the four-hour chart, the pair managed to move below the lower line of the red channel. The pair also managed to move below the 61.8% Fibonacci retracement level. Further, it fell below the 50-day moving average and is between the lower and middle lines of the Bollinger Bands. Therefore, the pair may keep falling, with the next key target being at 1.1870.

USDCHF

The USDCHF held steady ahead of the latest US consumer confidence data. On the two-hour chart, the pair managed to move above the upper side of the bullish flag pattern shown in red. It also moved above the 50-day moving average and the 23.6% Fibonacci retracement level. The Relative Strength Index (RSI) has also kept rising. Therefore, the pair may keep rising as bulls target the next key resistance at 0.9238.

NAS100

The Nasdaq 100 index is hovering near its all-time high after the Facebook lawsuit. The index is trading at $14,503, which is above the 25, 50, and 100-day exponential moving averages. The MACD is above the neutral level while the Relative Strength Index (RSI) has continued rising. Therefore, the path of least resistance for the index is still upwards, with the next key target being at $15,000.



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