EUR/USD at Critical Support; USD/JPY Nears Long-Term Highs

By Tomasz Wisniewski|

Published: June 27 2024, 06:50 GMT+0

EUR/USD at Critical Support; USD/JPY Nears Long-Term Highs

Good morning, traders! As we kick off Thursday, let’s explore the latest market updates. Starting with earnings from the U.S., Micron delivered better-than-expected results yesterday. Despite this, the stock fell 8% in after-hours trading as traders seemed unimpressed. Today, all eyes are on Nike as it prepares to release its earnings.

Turning to the economic calendar, the final U.S. GDP figure is expected to come in at 1.4%. We will also see unemployment claims and pending home sales data, with the latter expected to show a 0.6% increase. Yesterday, the Australian CPI came in at 4%, which provided a strong boost to the Australian dollar.

In the forex market, the spotlight is on USD/JPY, which reached new long-term highs yesterday before a slight pullback today. The Australian dollar continues to show strength, while the American dollar is currently the weakest. Additionally, a key development is unfolding in EUR/USD. This pair has defended the 1.067 horizontal support for the third time in a short period. The defenses on June 14th, June 21st, and again yesterday are putting significant pressure on this support level. A breakout below could trigger a strong sell signal, while a bounce would be positive for EUR/USD.

Commodities are presenting mixed signals. Silver and gold are trading just above key support levels, with a potential for long-term sell signals if these supports break. In contrast, oil remains robust, hovering near mid-term highs and showing a strong performance.

When it comes to indices, the market remains mixed with no clear direction. The Nasdaq benefited from a bullish reversal in NVIDIA, while the Dow Jones had a negative session. The DAX is performing well, but overall, indices seem to be in a holding pattern, awaiting more definitive movements.