Daily Market Charts and Analysis July 24, 2020

Here are the latest market charts and analysis for today. Check them out and know what’s happening in the market today.

USDNOK

It seems like the greenback is looking for a comeback. The US dollar to Norwegian krone exchange rate is projected to climb towards its resistance as bullish investors power their way forward. As of writing, the trading pair is flirting with crucial levels and if manages to climb past this, there’s a huge chance that bulls could reach their goal – resistance. That should help the US dollar to prevent the 50-day moving average from plunging further against the 200-day moving average. On the other hand, it’s also worth noting that some experts still believe that the US dollar is still significantly vulnerable. This means that a bearish trend for the USDNOK trading pair remains rather alluring. Looking at the chart, it’s evident that the tug of war between bulls and bears is limiting the movement of the pair this Friday. The Norwegian krone is pressured by concerns that fuel demand recovery would stall and oil prices would see some corrections.

USDPLN

The US dollar doesn’t stand a chance against the newfound strength of the Polish zloty. Prices are widely projected to crash towards their resistance level soon because of the EU stimulus package that further added fuel to other European currencies. The Polish zloty is one of the best assets, that are not linked to the commodity market, to bet on against the US dollar. This is because the safe-haven appeal of the US dollar would not work on the Polish zloty. Considering that the number of cases in the United States remains significantly higher compared to other nations, investors from Europe are really doubting its capabilities. As for the zloty, the undeniably strong figures produced by Poland’s economy is helping it to remain dominant in the foreign exchange market. Just yesterday, it was reported that the country’s unemployment rate went up from about 6.0% to 6.1%, marginally better from prior projections of approximately 6.2%.

USDILS

Israel is facing critical problems that could allow the US dollar to regain its footing and recover its losses from the shekel. The trading pair is predicted to go up towards its resistance level despite the serious weakness faced by the greenback against other major currencies in the market. This is because Israeli is in crisis mode as it gets hit by a second wave of coronavirus infections. Earlier this year, Israeli Prime Minister Benjamin Netanyahu was praised because of his initial response to the virus on his fifth term. However, just a few weeks after, the country is now suffering a bigger second wave of coronavirus infections and Netanyahu is seeing poll numbers collapse, protestors, and more dissenting policymakers. And it gets worse for the Israeli leader, even some of his political party members are now challenging his management of the resurgence of cases. The political turmoil in the country is the main reason for the shekel’s weakness.

USDZAR

The recent interest rate cut from the South African Reserve Bank allowed the US dollar to regain its footing against the rand. The trading pair is now on track to reach its resistance level after the 15 basis points cut by the reserve bank. The move should allow bulls to maintain their grip on the direction of the pair and help prevent the 200-day moving average. Just recently, it was reported that the South African Reserve Bank eased its interest rates from 3.75% to about 3.50% as expected. Aside from that, the reserve bank also slashed its prime rate from about 7.25% to 7.00%. However, there is still a potential downside for the USDZAR trading pair as the reserve bank’s gross domestic product forecast remains rather optimistic. Investors were surprised when the SARB said that it expects the GDP to contract by 7.3% from its May estimates of about 7.0%. Bears were surprised as they’ve anticipated a much deeper forecast.