09.07.202413:45 Forex Analysis & Reviews: Joe Biden has problems with his own party

Joe Biden strives to demonstrate unity within his party and the NATO alliance, but it is not so simple. Following a poor performance in last week's debates, members of Congress from the Democratic Party are increasingly raising sharp questions about Biden's age, mental acuity, and position as the party's flag bearer.

The 81-year-old president has tried to quell the growing calls for him to step down as the Democratic Party's presidential candidate by writing a letter to party legislators and holding a conference call. His message was: I am not going anywhere, so calm down and get in line. He even followed the example of Republican candidate Donald Trump by appearing on the "Morning Joe" show and accusing the party "elite" of fueling the calls for his resignation, but whether this helped Biden remains unclear.

It is unclear how this story will develop today, but it is evident that it is still ongoing. Nine House Democrats have publicly or privately urged Biden to step down as the party's candidate. However, some big names, including Senate Majority Leader Chuck Schumer, have supported Biden. Others continue to take a wait-and-see approach.

Does this whole story affect the positions of the US dollar and various risky assets, including the stock market? Not yet, but a change in the presidential candidate at any moment could lead to a significant spike in volatility, and one must be prepared for this.

All attention today will be focused on the speech of Federal Reserve Chairman Jerome Powell before legislators, who are eagerly awaiting a reduction in interest rates by the central bank, as well as from other parties dissatisfied with the plans to increase capital requirements for large lenders.

Any words from Powell could seriously alter the balance of power in the market and the technical picture, so be prepared for strong and directional movements of trading instruments.

Regarding the current technical picture of EUR/USD, buyers must consider how to take the level of 1.0845. Only this will allow aiming for a test of 1.0870. From there, it is possible to reach 1.0900, but doing so with support from large players will be easier. The furthest target will be the maximum at 1.0940. In case of a decline in the trading instrument, I expect significant actions from large buyers only around 1.0810. If there is no one there, it would be good to wait for the update of the minimum at 1.0785 or open long positions from 1.0760.

Regarding the current technical picture of GBP/USD, pound buyers must take the nearest resistance at 1.2830, which also serves as the weekly high. Only this will allow aiming for 1.2860, above which it will be quite challenging to break through. The furthest target will be the area at 1.2890, after which one can talk about a sharper rise of the pound to 1.2925. In case of a decline in the pair, the bears will try to take control of 1.2790. If they succeed, breaking through the range will seriously blow the bulls' positions and push GBP/USD to the minimum at 1.2765 with a prospect of reaching 1.2735.