U.S. dollar weakens before Powell, Iran-Israel ceases to cause oil prices to plummet

In the European session on Tuesday, June 24, risky flows dominated the actions of the financial markets as investors cheered for the announcement of a ceasefire by Iran and Israel. The European Economic Calendar will showcase German business confidence data. In the second half of the day, Federal Reserve Chairman Jerome Powell will testify before the U.S. House Financial Services www.avaforexcn.committee on the semi-annual monetary policy report.

After a 12-day missile attack, Iran and Israel reached an agreement to end the conflict. Israeli Prime Minister Benjamin Netanyahu said on Tuesday that Israel achieved its Iran war goals, adding that the country would respond strongly to violations of the armistice agreement. In response, crude oil prices fell sharply. West Texas Intermediate continued to fall after a 9% decline at the end of Monday, with the last trading price of about $65.50, down more than 2% on the day.

Basic market conditions in the foreign exchange market:

As the improvement of market sentiment, the US dollar (USD) also maintains selling pressure. The dollar index fluctuated around 98.00 for the last time, down about 0.3%. Meanwhile, major Wall Street indexes closed up after U.S. stock index futures rebounded late Monday, after nearly 1% the day before. During the U.S. trading hours, several Fed policymakers plan to speak.

The USD/Canada dollar fell slightly to around 1.3700 on Monday after hitting a weekly high around 1.3800. Market participants will closely monitor Canada's May Consumer Price Index (CPI) data later in the session.

The GBP/USD rose more than 0.5% on Monday and continued its rebound in early Tuesday. As of press time, the currency pair was onIt rose nearly 0.5%, and the trading price was slightly below 1.3600. Andrew Bailey, President of the Bank of England (BoE), will testify before the House of Lords Economic Affairs www.avaforexcn.committee at 14:00 GMT.

Euro/USD maintained bullish momentum after a strong gain on Monday, trading around 1.1600 in early trading on Tuesday.

Bulle market fundamentals:

Gold prices fell to a two-week low, and under the impulse of risk appetite, the price of gold seems to easily decline further.

Analysis of major currency trends:

Euro: Despite today's rebound, the European dollar/USD is still limited to below 1.1630. Intraday deviations remain neutral first. Further rise is expected when the 1.1452 support is intact. Breakthrough of the 1.1630 resistance level will continue to rise from 1.0176. The next target is a 61.8% forecast from 1.1064 to 1.1927 to 1.0176 to 1.1572. However, a breakout of 1.1452 support will indicate a short-term peak and turn down to get a deeper pullback.

Pound: The strong rebound of GBP/USD indicates that the callback from 1.3631 has been www.avaforexcn.completed at 1.3369. Intraday bias rose again, and first retested 1.3631. After a firm breakthrough, a larger rebound will be restored to the 1.4004 forecast level. Nevertheless, breaking through 1.3369 will extend the correction with another downward line.

JPY: The sharp decline in the US dollar/JPY indicates that the rebound from 142.10 has ended at 148.01. The sideways pattern of 148.64 is extending, with another falling line. The intraday deviation becomes neutral. On the bright side. Resolutely breaking through 148.64 will resume the retracement level of 158.86 to 139.87 from 139.87 to 151.22.

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