VT Markets APP

Trade CFDs on FX, Gold and more


Daily market analysis

JUL 09,2020

July 9, 2020

Daily Market Analysis

Market Focus


Tech Stocks extended gains while XAUUSD successfully climbed over $1810 on Wednesday. US tech shares surged as investors looked past tensions between Washington and Beijing and sought out companies thought to be insulated from rising COVID-19 cases. For instance, Apple and Amazon were among the high-flying tech stocks that advanced, pushing the Nasdaq Composite higher.

On the other hand, most stocks fluctuated between small gains and losses on S&P 500. Gold topped $1,800 an ounce, while Treasury yields climbed, and the dollar slipped. Moreover, Chief market analyst from Miller Tabak concluded that “as S&P 500 are getting close to the top end of its range, it looks like investors are going with the ‘safe’ route, which is buying tech, gold, and Treasuries”


Stocks in Europe gave up gains early in the trading session after Prime Minister claimed that regional leaders will probably fail to agree on a massive spending plan aimed at reviving their economies.

Market Wrap

Main Pairs Movement


GBPUSD is trading above 1.2550, shrugging off Germany’s Merkel comments that Brexit talks made little progress and may end with no deal. Adding to that, UK Chancellor Sunak presented fiscal plans including a retention bonus for firms that re-hire workers. USDJPY is extending its break below the 107.50 level, undermined by the relentless selling in the US dollar across its main competitors. AUD is having a great session on Wednesday as it trades higher against all the majors, with the 0.70 psychological level turning into a resistance level. The DXY is losing upside momentum and slips back to the sub 97.0 area following the opening at Wall Street. Last but not least, an unexpected build in US crude stockpiles once undermined WTI’s price in the early trading hours, pushing the price down to 40.35; nonetheless, it has bounced back to 40.85.

COVID-19 Data (EOD):

Technical Analysis:


EURUSD is performing well on Wednesday as the pair has rallied 0.60% higher with extended retreat in the greenback. Building on top of the strong US equity market, investors are shrugging off EU disagreements amid rising coronavirus statistics. The RSI is approaching the overbought zone but there appears to be some room on the upside. At the same time, the MACD signal lines remain above the mid-point, suggesting a bullish trend is on the rise.


Resistance: 1.1349, 1.1380, 1.1400

Support: 1.1203, 1.1227, 1.1261


The Loonie is trading 0.72% lower on Wednesday as the greenback undergoes selling pressure. At the time of writing, the price is dropping to the 1.3500 psychological zone. Additionally, with oil moving higher and USD struggling, the Loonie is now looking to test lower levels, which is around 1.3485, a strong support price level that has been both support and resistance in the past. With the RSI has hit the oversold region, we believe that even though the pair is likely going to decline further with the ongoing greenback sell-off sentiment, there could be a rebound back in the medium term.


Resistance: 1.3567, 1.3632, 1.3719

Support: 1.3485, 1.3439, 1.3356



The precious metal extended its bullish trend today and rose above the highest level since 2011 at $1818. XAUUSD retreated moved off from the highs and found support around $1810. XAUUSD is about to post the strongest close since September 2011 as the demand for the safe-haven metal prevails on a scenario dominated by ultra-easy monetary policy across the world. On the upside, the next resistance should be seen at 1825 while the 1797 region becomes the most immediate support. At this point, we expect the gold would fluctuate between 1800 and 1818 until further business or financial news shake sentiment.


Resistance: 1818, 1825, 1840

Support: 1765, 1778, 1797


Economic Data


Data Time (TP) Forecast


(Our side)


Initial Jobless Claims 20.30 1,375K



Risk Warning:

Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.

The information provided is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs.

This site uses cookies to provide you with a great user experience.
By using asia.vtmarkets.com, you accept
our cookie policy.