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US dollar climbs higher; Oil rebounds from 2-month lows

July 21, 2021

AUD/USD: The Australian dollar has failed to break the yearly low of 0.73, getting stuck around 0.7320 this morning. The AUD/USD pair reached an 8-month low during yesterday’s session, which was a fresh 2021 low. The pair partly recovered ahead of the daily close, but the Aussie still became the worst performers against the US dollar in a risk-off mood. The spread of the Delta variant of COVID in the country and lockdowns are pushing heavily on the economy, according to June macroeconomic statistics. Restrictions have been extended these days, which means that July will be another month of weak data. The Reserve Bank of Australia published the Minutes of its latest meeting, which showed that policymakers are compromised to keep the supportive monetary conditions, and the current rates will remain at record lows until employment and inflation reach the desired levels.

SELL 0.7330/TP 0.7240/SL 0.7365


GBP/USD: The British pound showed a bearish dynamic, having broken a five-month low against the US dollar yesterday as broad demand for the safe-haven dollar amid a global surge in COVID infections kept investors worried. England lifted all COVID-19 social restrictions on Monday in what local media dubbed “Freedom Day”, although the end of the lockdown measures was a surge in infections caused by the Delta variant of the virus. At the beginning of the US session on Tuesday, sterling was much lower against the dollar, trading at $1.3570 and hitting a more than five-month low. Despite this, bulls could partially recover their losses, having pushed the pair to the 1.3630 level during today’s Asian session.

SELL LIMIT 1.3670/TP 1.3560/SL 1.3715


WTI: WTI prices came under strong bearish pressure at the start of the week and the prices lost nearly 7% on Monday. After pushing it to its lowest level in nearly two months at $65 level yesterday, WTI rebounded and gained 1%. Worsening demand outlook amid rising number of confirmed coronavirus Delta variants mixed with increasing OPEC+ oil output following the agreement between the United Arab Emirates and Saudi Arabia affected oil prices this week. While there is a lack of significant fundamental news that could be seen as a positive driver for oil prices, the latest recovery looks like a correction after a huge downtrend. Despite this, the improving market sentiment is also supporting the risk-sensitive oil prices, making them attractive for investors.

SELL LIMIT 67.50/TP 65.00/SL 68.50