Daily Wrap Up – 3 July

The start of the week was calm and didn't witness strong moves, but the US dollar managed to erase some of its losses last week, ahead of US employment data to be released on Friday. This was helped by the positive figures for the manufacturing sector, with the ISM Manufacturing PMI recording its highest reading in two and a half years at 57.8 points.

Before US markets prepared for the Independence Day holiday on July 4, the Dow Jones industrial average rose near its historic high of 21,532 points today, helped by gains in the energy and banking sectors stocks, but a fall in tech stocks dragged down the Nasdaq down by 0.32% so far.

The US dollar recovered against most of its rivals, as the EURUSD retreated to test an important support level at 1.1362, breaking it down prices are expected to return to test the strong support at 1.1290. The USDJPY rose as Japanese Prime Minister Shinzo Abe's party slipped in local elections to hit its highest level since mid-May at 113.45, crossing the downtrend on the daily basis.

A number of manufacturing PMI figures were also released today, with the Chinese manufacturing sector resuming its expansion in June unexpectedly, while the British manufacturing sector continued to slow to its lowest level in the last 3 months.

The yellow metal has seen a significant decline since the end of trading last week, especially after the price exceeded the level of strong support at 1241 dollars, achieving the goal of the head and shoulders pattern on the 4-hour time frame at 1220 dollars per ounce.

Crude oil continued to recover after stabilizing above the resistance level of 45.50 dollars a barrel and is currently testing an important resistance level at 46.70 dollars and exceeded it is expected to go directly to levels of 48 dollars or may see some decline to test the level of 45.50 before rising again.