The foreign exchange market spent the Asian part of the session in a slow horizontal drift. USD slowly continues to rebound after the Friday's breakdown. The Chinese yuan is losing, but the Shanghai stock exchange is growing - both in response to news about policy delays by the PBOC. Oil remains stable, although low after yesterday's depreciation.
Lack of information in the last hours allowed for calm trading on the currency market. EUR / USD fell slightly to 1.1680, USD / JPY reached 111.30 after falling to 111.11 at night. The focus at night stays on USD / CNY, which returns over 6.80. The market is trying to digest reports of new activities of the People's Bank of China on supporting lending. What harms the currency, helps the stock market and Shanghai Composite grows today 1.4%. The stock market in Asia is generally in a better mood and the Japanese Nikkei225 gains 0.5%.
Crude Oil analysis for 24/07/2018:
WTI crude oil is on 4-day lows at 67.60. The night passed calmly, and lower levels were set yesterday in the evening, when the market participants was informed that the US government is working on changes that limit fuel consumption by 35 miles / gallon by 2020. Previous projects said a gradual increase of the limit to 50 miles / gallon until 2025. Information comes from sources and the entire legislative process will take a long time.
Let's now take a look at the Crude Oil technical picture at the H4 time frame. The bullish rally was rejected at the level of 69.24 and the price felt towards the level of 67.60. If this level is violated, then the next target for bears is seen at the level of 66.52 and then 65.96. The momentum remains below its fity level, so the short-term bearish outlook is now preffered.
