PU Prime App

Exclusive deals on mobile

  • Market Insights  >  Daily Market Analysis

10 July 2024,03:44

Daily Market Analysis

Dollar Calm On Neutral Powell’s Testimony

10 July 2024, 03:44

Share on:
Share on:

Market Summary

The highly anticipated testimony of Jerome Powell commenced yesterday, but the market remained calm as the Fed’s chief delivered a neutral statement. Powell acknowledged that inflationary pressure in the U.S. is showing signs of easing and raised concerns about potential risks to the labour market from persistent high borrowing costs. However, he refrained from providing a timeline for a Fed rate cut as the Fed is concerning cutting the rate too soon, and too much will have reverse progress on the inflation. Consequently, the dollar index (DXY) held near the $105 mark, while Wall Street traded sideways, awaiting more clues on the second day of the testimony.

In Japan, during the BoJ hearings, major banks urged the central bank to significantly cut its monthly bond purchases to bolster national bond yields and strengthen the Japanese Yen. As a result, the Yen traded above the 161.00 mark. Yen traders should remain cautious of potential market intervention from Japanese authorities.

In the commodity market, gold found support at its liquidity zone near the $2360 level as the dollar’s strength eased yesterday. Meanwhile, oil prices continued to slide as the Texas oil-producing hub experienced less damage than initially expected from Hurricane Beryl.

Current rate hike bets on 31st July Fed interest rate decision

Source: CME Fedwatch Tool

0 bps (95.3%) VS -25 bps (4.7%)

Market Overview

market overview price chart 10 July 2024

Economic Calendar

(MT4 System Time)

economic calendar 10 July 2024

Source: MQL5 

Market Movements

dollar index dxy price chart 10 July 2024


The Dollar Index was rejected at its resistance level of 105.15, a potential pivotal point for its future direction. Powell’s testimony last night neither catalysed nor pressured the dollar significantly. However, as the testimony continues today, traders should keep a close watch for further insights from the Fed’s chief regarding the country’s monetary policy moves.

The Dollar index was rejected at its key resistance level of 105.15 and had a doji candlestick, suggesting a potential retracement from such a level. The RSI remained at near 50 while the MACD edged higher from below the zero line, suggesting the bearish momentum is easing. 

Resistance level: 105.15, 105.50

Support level: 104.75, 104.40

XAU/USD gold price chart 10 July 2024


Gold prices have shown signs of recovery from their previous downtrend, finding support near the $2360 liquidity zone. The dollar index remained stable in the last session, allowing gold to take a breather from its bearish trend. Recently, gold has been highly sensitive to the dollar’s strength.

Gold prices found support at the liquidity zone at near $2360, and the candlesticks’ long, lower wicks near the liquidity zone suggest buying power is supporting at such a level. The RSI is flowing flat at near the 50 level, while the MACD continues to edge lower toward the zero line, suggesting that bearish momentum remains with gold. 

Resistance level: 2367.85, 2387.10

Support level: 2345.60, 2335.00

GBP/USD price chart 10 July 2024


The GBP/USD pair eased slightly from its recent high level. With the Pound Sterling lacking a fresh catalyst, the pair is likely to be influenced by Jerome Powell’s statement on his second day of testimony in front of the Senate. GBP/USD traders should also pay attention to tomorrow’s UK GDP reading and the U.S. CPI reading to gauge the direction of the pair.

The GBP/USD pair continues to slide, as the lack of a catalyst suggests a bearish signal for the pair. The RSI has slipped out from the overbought zone, while the MACD has crossed, which suggests that bearish momentum is forming. 

Resistance level: 1.2850, 1.2940

Support level: 1.2760, 1.2660

EUR/USD price chart 10 July 2024


The EUR/USD pair eased from its retracement at the support level of 1.0815, maintaining its uptrend trajectory. Political uncertainty in France persists, as no single party has secured a majority in the Lower House, and it may take weeks to resolve the issue. If the political uncertainty in France is settled, the euro may strengthen.

EUR/USD is currently trading in an asymmetric triangle pattern. A break from either side of the triangle will provide a signal for the pair. The RSI has slipped lower, while the MACD has crossed, suggesting that the bullish momentum is easing. 

Resistance level: 1.0853, 1.0900

Support level: 1.0767, 1.0735

nasdaq price chart 10 July 2024

Nasdaq  (US100), H4

Wall Street is currently trading cautiously as traders position themselves for the second day of Powell’s testimony. Yesterday, the Fed Chair acknowledged that inflationary pressures in the U.S. have shown signs of easing and raised concerns about potential risks in the labour market, as the unemployment rate has climbed to 4.1%. However, Powell did not provide a timeline for rate cuts and suggested that cutting rates too soon or too much could reverse progress on inflation.

Nasdaq is poised at its all-time high level, awaiting a catalyst to break another high. The RSI has been hovering within the overbought zone, while the MACD continues to edge higher, suggesting that the bullish momentum remains intact with the index. 

Resistance level: 20560.00, 20700.00

Support level: 20330.00, 20150.00

NZD/USD price chart 10 July 2024


The New Zealand Dollar has eased from just below its resistance level at 0.6145 and is now supported at its short-term support level of 0.6106. The Kiwi is currently awaiting the RBNZ’s interest rate decision and the accompanying statement from the New Zealand central bank, which will provide insight into the strength of the currency going forward.

The NZD/USD pair is currently traded in a wide sideways range between 0.6145 and 0.6016. A break from either side will provide a signal for the pair. The RSI has eased toward the 50 level from above, while the MACD has crossed above the zero line, suggesting the bullish momentum is vanishing. 

Resistance level: 0.6145, 0.6210

Support level: 0.6080, 0.6015

USD/JPY price chart 10 July 2024


The USD/JPY pair has formed an inverted head-and-shoulders price pattern, suggesting a bullish bias for the pair. As it climbs back to critical levels seen as intervention points for the BoJ, major banks in Japan have also urged the BoJ to cut its monthly bond purchases to eventually strengthen the Japanese Yen. Traders should be cautious of a potential market intervention from the BoJ.

The USD/JPY pair has formed an inverted Head-and-Shoulders price pattern and is currently traded firmly above the 161.00 level, suggesting a bullish signal for the pair. The RSI has climbed toward the overbought zone, while the MACD is edging higher, suggesting that bullish momentum is gaining. 

Resistance level: 162.00, 163.00

Support level: 160.45, 159.85

crude oil price chart 10 July 2024


Oil prices slipped below their key support level at $82.15. The anticipated supply disruption from Hurricane Beryl is now seen as unlikely, as the storm caused less damage to the Texas oil-producing hub than initially feared. Meanwhile, the Chinese CPI data due today is expected to impact oil prices. A strong Chinese CPI reading could spur oil prices higher.

Oil prices slid below their key support level, suggesting a bearish bias for oil. The RSI has declined to near the oversold zone, while the MACD has broken below the zero line and is diverging, suggesting that bearish momentum is gaining. 

Resistance level: 82.15, 84.80

Support level: 80.05, 78.60

Start trading with an edge today

Trade forex, indices, metal, and more at industry-low spreads and lightning-fast execution.

  • Start trading with deposits as low as $50 on our standard accounts.
  • Get access to 24/7 support.
  • Access hundreds of instruments, free educational tools, and some of the best promotions around.
Join Now

Latest Posts

Fast And Easy Account Opening

Create Live Account
  • 1


    Sign up for a PU Prime Live Account with our hassle-free process.

  • 2


    Effortlessly fund your account with a wide range of channels and accepted currencies.

  • 3

    Start Trading

    Access hundreds of instruments under market-leading trading conditions.

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!