NZD/USD Intraday technical levels and trading recommendations for July 3, 2017

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Daily Outlook

The NZD/USD pair has been trending up within the depicted bullish channel since January 2016.

In November 2016, early signs of bullish weakness were expressed on the chart when the pair failed to record a new high above 0.7400.

A bearish breakout of the lower limit of the channel took place in December 2016.

In February 2017, the depicted short-term downtrend was initiated in the depicted supply zone (0.7310-0.7380).

However, a recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

The price zone of 0.7150-0.7230 (SUPPLY ZONE in confluence with 61.8% Fibonacci level) stood as a temporary resistance zone until a bullish breakout was expressed above 0.7230.

This resulted in a quick bullish advance towards the next supply zone around 0.7310-0.7380 where evident bearish rejection was expressed on June 14.

Currently, the NZD/USD pair remains trapped between the price levels of 0.7230 - 0.7310 until a breakout occurs in either direction.

Trade recommendations:

Risky traders can have a valid SELL entry at retesting of the price level of 0.7310. S/L should be placed above 0.7400.

Conservative traders can wait for a bearish closure below 0.7230 then 0.7150 (61.8% Fibo level) for a valid SELL position.

S/L should be placed above 0.7250 while T/P levels should be placed at 0.7050, 0.6970, and 0.6850.

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Intraday technical levels and trading recommendations for EUR/USD for July 3, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target is projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

Currently, the EUR/USD pair remains trapped within the depicted consolidation range (1.0500-1.1400) until a breakout occurs in either direction.

Any bullish breakout above 1.1400 will probably liberate a quick bullish advance towards 1.1495 and 1.1600.

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Daily Outlook

In January 2017, the previous downtrend reversed when the Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

The next daily supply level for the EUR/USD pair is located between 1.1400-1.1520 where the price action should be watched for possible bearish rejection.

Recently, the price levels around 1.1280-1.1295 stood as an intraday resistance where recent bearish correction was initiated towards 1.1120.

The evident bullish rejection was expressed around 1.1120 where the current bullish movement towards 1.1400 was initiated.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further advance towards 1.1415 (Daily Supply-Zone) where a valid SELL entry can be offered if enough bearish rejection is maintained.

Early signs of bearish rejection should be expressed by the bears around 1.1400. Otherwise, further bullish advance towards 1.1500 should be expected soon.

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Technical analysis of GBP/USD for July 03, 2017

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Overview:

  • The GBP/USD pair continues to move upwards from the level of 1.2935. Today, the first support level is currently seen at 1.2935, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 1.2861, which coincides with the 61.8% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the GBP/USD pair to trade between 1.2935 and 1.3029. So, the support is seen at 1.2935, while daily resistance is found at 1.3029. Therefore, the market is likely to show signs of a bullish trend around the spot of 1.2935. In other words, buy orders are recommended above the spot of 1.2935 with the first target at the level of 1.3029; and continue towards 1.3075 in coming days. However, if the GBP/USD pair fails to break through the resistance level of 1.2861 today, the market will decline further to 1.2809.
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Fundamental Analysis of USD/JPY for July 3, 2017

USD/JPY has shown bullish pressure after the recent JPY reports and historic defeat in an election in the capital Tokyo on Sunday. Today JPY Tenkan Manufacturing Index showed an increase to 17 from the previous value of 12 which was expected to be at 15 but Tenkan Non-Manufacturing Index was published with an actual figure at 23 from the previous value of 20 but failed to meet the expected value of 24. Along these economic events, JPY Final Manufacturing PMI showed an increase to 52.4 which was expected to be unchanged at 52.0 and JPY Consumer Confidence was published at 43.3 which previously was at 43.6 and which was expected to increase to 43.9. On the USD side, today ISM Manufacturing Index report is yet to be published which is expected to increase to 55.0 from previous value of 54.9, Construction Spending is expected to be positive at 0.3% which previously was negative at -1.4%, ISM Manufacturing Prices is expected to decrease to 58.5 from previous value of 60.5 and Total Vehicle Sales is also expected to decrease to 16.5M from previous value of 16.7M. To sum up, JPY had mixed economic reports today yet failed to gain against USD currently and as of most of the USD reports are expected to show a worse figure today, we might see some volatility in the market before the daily close.

Now let us look at the technical view, the price is currently above the dynamic level of 20 EMA after breaking above the important level of 110.20. Currently, the price is expected to reach the resistance area of 114.40-115.00 in the coming days. As the price remains above the 20 EMA, a bullish bias is expected to continue further in this pair.

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Technical analysis of EUR/USD for July 03, 2017

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Overview:

  • On the one-hour chart, the EUR/USD pair continues moving in a bearish trend from the resistance level of 1.1444. Currently, the price is in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish trending market. The bias remains bearish in the nearest term testing 1.1319 and 1.1281. Immediate resistance is seen around 1.1374 levels, which coincides with the weekly pivot. Moreover, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1374. So it will be good to sell at 1.1374 with the first target of 1.1319. It will also call for a downtrend in order to continue towards 1.1281. The strong weekly support is seen at 1.1281. On the other hand, if a breakout happens at the resistance level of 1.1444, then this scenario may be invalidated.
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Fundamental Analysis of EUR/USD for July 3, 2017

Recently EUR/USD has broken above the corrective structure resistance area of 1.1280-1.1360. As of the first week of the month, the pair started slow and currently showing some bearish pressure after the impulsive bullish breakout. Recently EUR has been quite stronger than USD due to positive economic reports and the hawkish statement from ECB President Mario Draghi and as of the current situation, a further continuation of gain is expected in this pair in the coming days. Today EUR Spanish Manufacturing PMI report was published with a worse figure at 54.7 from the previous figure of 55.4 which was expected to increase to 55.6, Italian Manufacturing PMI showed a slight improvement to 55.2 from previous value of 55.1 which was expected to increase to 55.3, French Final Manufacturing PMI showed a decrease to 54.8 which was expected to be unchanged at 55.0, German Final Manufacturing PMI showed an increase to 59.6 which was expected to be unchanged at 59.3, EUR Final Manufacturing PMI showed a slight increase to 57.4 which was expected to be unchanged at 57.3 and Italian Monthly Unemployment Rate is increased to 11.3% from previous value of 11.2% which expected to decrease to 11.1%. Along with these economic reports, EUR Unemployment Rate report which was published today was unchanged at 9.3%. Overall EUR had a series of negative reports today with a few slight improved figures in the reports which did not help the currency to gain much strength in the market today. On the USD side, today ISM Manufacturing PMI report is going to be published which is expected to increase to 55.0 from previous value of 54.9, Construction Spending is expected to show an increase to 0.3% from -1.4%, ISM Manufacturing Prices is expected to decrease to 58.5 from previous value of 60.5 and Total Vehicle Sales in the USA is expected to fall to 16.5M from previous value of 16.7M today. As a respectable number of economic events on USD is going to be published, volatility is expected to hit the market today. Any negative report on USD today will help EUR to gain more against USD in the coming days which is more probable. To sum up, EUR has the upper hand over USD and expected to dominate further in the coming days.

Now let us look at the technical view after the price has broken above the resistance area of 1.1280-1.1360, currently, it is expected that the price will move down to the same area to retest it as a support area before proceeding further up towards 1.1610 resistance area in the future. As the price remains above the area of 1.1280-1.1360 further bullish pressure is expected in this pair and bullish bias is to continue in the coming days.

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EUR/USD analysis for July 03, 2017

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Recently, the EUR/USD has been trading downwards. The price tested the level of 1.1371. According to the 4H time frame, I found broken upward trendline in the background, which is a sign that buying looks risky. I have placed Fibonacci levels to find potential downward targets. I got Fibonacci retracement 38.2% at the price of 1.1320. Watch for selling opportunities on the rallies.

Resistance levels:

R1: 1.1427

R2: 1.1435

R3: 1.1440

Support levels:

S1: 1.1420

S2: 1.1417

S3: 1.1405

Trading recommendations for today: watch for potential selling opportunities.

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GBP/USD analysis for July 03, 2017

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Recently, the GBP/USD pair has been trading downwards.The price tested the level of 1.2962. According to the 15M time frame, I have found that sellers are in control today on the market. I found weak demand in a low volume on the rallies, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities today. Downward targets are set at the price of 1.2940 and 1.2920.

Resistance levels:

R1: 1.3010

R2: 1.3025

R3: 1.3035

Support levels:

S1: 1.2990

S2: 1.2980

S3: 1.2965

Trading recommendations for today: watch for potential selling opportunities.

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Technical analysis of USD/JPY for July 03, 2017

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USD/JPY is expected to trade with bullish outlook above 112.20. Although the pair broke below the 20-period moving average, it is still trading above the rising 50-period moving average which plays a support role. The downside potential should be limited by the key support at 112.05.

Therefore, as long as 112.20 holds on the downside, look for a new rebound to 113.20 and even to 113.70 in extension.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 112.20 with targets at 111.70 and 111.35.

Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position while the price below the pivot point is a sign for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.

Strategy : SELL, Stop Loss: 112.40, Take Profit: 111.70

Resistance levels: 113.20, 113.70, and 114.05

Support levels: 111.70,111.35, and 111.00

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Technical analysis of USD/CHF for July 3, 2017

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USD/CHF is expected to trade with a bullish outlook. The pair is trading above the key support at 0.9565, which should limit the downside potential. The upward momentum is further reinforced by both rising 20-period and 50-period moving averages. The relative strength index is supported by the rising trend line since June 29.

Therefore, as long as 0.9565 is not broken, look for a rebound to 0.9630 and even to 0.9660 in extension.

Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 0.9565, Take Profit: 0.9630

Resistance levels: 0.9630, 0.9660, and 0.9685

Support levels: 0.9550, 0.9525, and 0.9500

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Global macro overview for 03/07/2017

Global macro overview for 03/07/2017:

The ISM Manufacturing data from the US might confirm another month of a moderate growth at the year's midpoint. Market participants expect ISM to increase slightly from 54.9 points to 55.1 points, which is far away from any impressive level of performance, but still is a solid and steady pace of growth. More importantly, the ISM index is still above the fifty level, that separates the expansion from contraction.

The ISM index has been rising from the level of 49.5 in August 2016 to the level of 57.5 in late February 2017. Since then the index is slightly deteriorating from its peaks, but it is still above the fifty level. This data is considered a very important and trusted economic measure, so it might be a little worrying if it starts to slide, despite the solid and steady numbers. The recent The Atlanta Fed's downgrade in GDP expectations from 2.9% to 2.7% in the second quarter might be the first indication, that Q2 will not improve over the Q1 as big as anticipated. The expectations for a stronger GDP rebound have been fading in recent weeks. The market will be eager to learn if today's first look at the ISM index for June will also issue a comparatively cautious assessment. If the number would beat the expectations, it might trigger a solid bounce off the US Dollar from the current oversold levels.

So, let's now take a look at the US Dollar Index technical picture on the H4 time frame. The bulls are trying to bounce back from the important support at the level of 95.91 and the oversold market conditions and growing bullish divergence support this move. The next technical resistance is seen at the level of 96.32.

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Technical analysis of GBP/JPY for July 3, 2017

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GBP/JPY is expected to trade with a bullish bias. The pair is currently testing the support of its 50-period moving average, and remains above the horizontal support at 127.80. The 20-period moving average still remains above the 50-period moving average, and the relative strength index is around its neutrality area at 50, lacking downward momentum.

As long as 145.50 is not broken down, further advance is preferred with 147.50 and 148.00 as targets.

Alternatively, if the price moves in the opposite direction as predicted, a short position is recommended below 145.50 with the target at 145.05.

Chart Explanation: the black line shows the pivot point. The price above pivot point indicates the bullish position and when it is below pivot points, it indicates a short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Strategy: BUY, Stop Loss: 145.40, Take Profit: 147.50.

Resistance levels: 147.50, 148.00, and 148.50

Support levels: 145.05, 144.15, and 143.15

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Global macro overview for 03/07/2017

Global macro overview for 03/07/2017:

It might be a busy trading week, so let's take a look at the top events in the economic calendar this week. It might start slowly, mainly due to the US Independence Day holiday, but it will get very interesting at the end of the trading week.

Monday, 03/07/2017:

The new quarter will start with the floods of PMI reports from the leading economies in the world. We will begin with Japan, South Korea, China, India, Russia, and Turkey, followed by Holland, Poland, Spain, Italy, France, Germany, the Eurozone, the United Kingdom and the US. On this occasion, it is worth recalling that in the last report the German PMI won again.

At 09:00 am GMT the Eurostat will present data on the condition of the EU labor market.

It is worth remembering that July 3 is a special day for Americans because of the national holiday on July 4th. So, on Monday the Wall Street session will last until 05:00 pm GMT.

Tuesday, 04/07/2017:

The Independence Day celebrated in the US is associated with the lack of trading activity in the local stock and bond markets. The absence of American traders will also be visible on the trading floors of the whole world, so the volatility will be limited.

Besides, it is hard not to find important events, only interest rates will be decided by the Reserve Bank of Australia (04:30 am GMT) and Riksbank of Sweden (07:30 am GMT), while Eurostat will announce PPI from the Eurozone (11:00 am GMT).

Wednesday, 05/07/2017:

Traditionally, two days after the PMI Manufacturing sector index review, it will be time to publish the corresponding indexes for the PMI Services sector. We will look at the situation in Japan, Russia, Spain, Italy, France, Germany, the Eurozone, and the UK. At 09:00 am GMT Eurostat will present data on May Retail Sales in the Eurozone.

US Mortgage Applications (11:00 am GMT) and Factory Orders (02:00 pm GMT) will be published during the US trading session. More important than this publication will be the content of the minutes of the last meeting of the Federal Open Market Committee (06:00 pm GMT), during which a decision was made to increase interest rates. Investors will, as always, seek to find in the document guidelines for future Federal Reserve's moves. The last accent of the day will be a notice of change of oil reserves (09:40 pm GMT) from EIA.

Thursday, 06/07/2017:

We will begin with the next report from the German economy (Factory orders, 06:00 am GMT), which has nothing but all positive signals in recent weeks. At 07:15 am GMT we will be able to get acquainted with the dynamics of inflation in Switzerland and at 11:15 am GMT with the most important event of the day - minutes of the meeting of the European Central Bank.

In the US, the countdown begins on Friday's Non-Farm Payrolls publication. Thursday's Challenger and ADP reports will be available on the market at 11:30 am GMT and 02:15 pm GMT respectively. A little later, the market will find information on the number of claims for unemployment benefits (02:30 pm GMT) and US Trade Balance data (02:30 pm GMT). The rest of the day in the US will be the service sector's report (PMI at 01.45 pm GMT, ISM Non-Manufacturing PMI at 04:00 pm GMT).

Friday, 07/07/2017:

The data for Industrial Production in Germany, France, Spain, and the UK will be released in the morning. In addition, reports on foreign trade will appear on both sides of the English Channel (Trade Balance data from France at 06.45am GMT, for the UK at 08:30 am GMT).

The most important publication of the day will, of course, be the June report from the US labor market, which will see the light of day at 12:30 pm GMT. According to economists, the Non-Farm Payrolls should deliver an increase in employment by a solid 180 thousand against a weak May reading of 138 thousand (as usual, possible revisions). It is also worthwhile to look at wage dynamics (+ 0.3% m/m increase is expected), because of the prospects for further rates increases by the Fed.

Because the whole week is all about the US data release, let's now take a look at the US stock index, the SPY (SP500 ETF) technical picture on the H1 time frame. The price has tested the recent highs at the level of 245.00 three times and it failed to break out higher so far. The series of five lower highs is clearly visible on the hourly time frame chart, so the odds for a further slide towards the next technical support at the level of 239.92 is possible. Nevertheless, as long as the technical support at the level of 235.39 is not violated, the overall bias remains to the upside.

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Daily analysis of major pairs for July 3, 2017

EUR/USD: This pair moved upwards by 230 pips last week, ending the consolidation phase that was witnessed from June 12 to June 24. There is a huge Bullish Confirmation Pattern in the market, and further upwards movement is possible. However, the upwards movement may not take place protractedly because the outlook on EUR pairs is bearish for this week. The EUR/USD may thus slide southwards before the end of the week.

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USD/CHF: The USD/CHF pair dropped precipitously last week, losing about 160 pips. Price almost tested the support level at 0.9550, before bouncing upwards to close near the resistance level at 0.9600. There is a bearish bias on the market, though that may change soon as EUR/USD slides southwards, helping USD/CHF to rally.

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GBP/USD: The GBP/USD pair gained about 340 pips last week, closing above the accumulation territory at 1.3000 (which was our target for last week). It is possible that price would continue going upwards this week, but the upwards movement would not be strong, owing to a bearish outlook on GBP pairs for this week and for the month of July 2017.

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USD/JPY: Since June 14, this currency trading instrument has been going upwards slowly and gradually, gaining about 350 pips since then. The supply level at 112.50 was tested but price could not close above that level. This week, there is a great possibility of a bearish run, because the outlook on JPY pairs is seriously bearish for this week and for July 2017.

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EUR/JPY: Unlike its USD/JPY counterpart, which moved upwards slowly and gradually, the EUR/JPY pair moved upwards significantly and rapidly. Price took off from the demand zone at 124.50, reaching the supply zone at 128.50 (a movement of 400 pips). Short trades are not currently advised here, owing to a big Bullish Confirmation Pattern in the market. Nonetheless, there would soon be a deep correction in the market as a result of the bearish outlook on JPY pairs for July – and that is when short trades would make some sense.

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Ichimoku indicator analysis of USDX for July 3, 2017

The Dollar index remains in a bearish trend. There are signs of a possible upward reversal at least for the short-term, so Dollar bears should be very cautious.

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Blue lines - bearish channel

Red line - resistance

Price is inside a bearish channel. Price is trading below both the tenkan- and kijun-sen indicators. RSI (5) is oversold and turning upwards. This is a bullish short-term sign. This implies that a bounce towards the red line resistance and previous support is highly possible for the start of the week.

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Blue lines - bearish channel

The weekly trend is bearish. The oscillators are diverging and the price is touching the lower channel boundary. A bounce towards the upper channel boundary or at least the lower Kumo boundary is justified. So a bounce towards 98-98.50 is awaited. No reversal confirmation yet. Bears should be cautious.

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Ichimoku indicator analysis of gold for July 3, 2017

Gold price remains in a bearish trend as the price has not managed to break above short-term resistance of $1,260. The price is at a weekly support level and bears should be very cautious.

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Red line - resistance

Price is below the 4 hour Kumo (cloud) and the red trend line resistance. Short-term trend is bearish as long as the price is below $1,250-60 area. There are some divergence signs that provide a warning for bears and we should not ignore them. Short positions should be protected.

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Black line -long-term resistance

Green line - short-term support

Blue line -long-term support

Long-term price action remains trapped inside the long-term triangle pattern. Price is now testing important weekly trend line and Kumo (cloud) support at the $1,235 area. A bounce and start of a new upward move are highly possible from this price area. Bears should be very cautious. Confirmation of the start of the next upward move will come with the break of the black trend line resistance.

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Technical analysis of NZD/USD for July 3, 2017

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NZD/USD is consolidating and expected to trade in a lower range. The pair stays below its resistance at 0.734 and remains in a bearish channel. The 20-period moving average is still below the 50-period moving average, which should also maintain a bearish bias. And the relative strength index is around its neutrality area at 50, lacking upward momentum.

As long as 0.7345 holds as the key resistance, the risk of a break below 0..7290 remains high. A break below this level may allow for a further drop to 0.7275.

Strategy: SELL Stop Loss: 0.7345. Take Profit: 0.72590

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7360, 0.7375, and 0.7405

Support levels: 0.7290, 0.7275, and 0.7255

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Trading plan for 03/07/2017

Trading plan for 03/07/2017:

The US Dollar is gaining slightly to the other currency pairs. It has risen the most GBP (0.24% and CAD (0.22%). EUR/USD is slightly above 1.1400, GBP/USD has slipped below 1.3000, USD/JPY is approaching resistance at 112.50. WTI oil is up 0.35% and is trading at $46.20, an ounce of gold costs $ 1,237. On the Asian stock market was a very quiet session, the index fluctuations barely exceeded 0.1%. The Nikkei 225 is up 0.12%, Hang Seng 0.09% and Shanghai Composite is 0.03% under the line.

On Monday 3rd of June, the event calendar will be dominated by PMI Manufacturing data releases from across the Eurozone, Great Britain and the US. Moreover, Unemployment Rate data from the Eurozone will be released as well.

EUR/USD analysis for 03/07/2017:

The PMI Manufacturing data from Spain, France, Germany, and Italy are scheduled for release in the early hours of European trading session. Global investors are expecting data to be at least in line with the last month's figures. However, better than last month's data are welcome as well. All of the current PMI's across the Eurozone are above the fifty level, which separates the contraction from the expansion. Because the manufacturing sector represents nearly a quarter of total Eurozone's GDP, the Eurozone Manufacturing PMI is a significant and timely indicator of both business conditions and the general health of the economy.

The other good data to be released today is the Unemployment Rate from the Eurozone (released at 09:00 am GMT), which is expected at the level of 9.3%. The rate is still relatively higher than for example US rate (4.3%), but it is close to the lowest level in 8 years anyway. The downward trend is an important sign and today's update is on track to reaffirm that the economic recovery is poised to continue.

Let's now take a look at the EUR/USD technical picture on the H4 time frame. The market is trading in a narrow range between the levels of 1.1444 - 1.1386 in overbought market conditions. Moreover, there is a visible bearish divergence between the price and the momentum indicator, which might result in a down move towards the support at the level fo 1.1386 to test it. Worse than expected data from the Eurozone might accelerate the downside.

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Market Snapshot: Crude Oil price under important resistnace

The WTI oil prices have been recovering for the recent six days. At present, the bulls have managed to push the prices towards the important technical resistance at the level of $46.71. This level is just below the 50% Fibo retracement at the level of $47.02, so a corrective pullback might be expected around this level, especially if we take into consideration overbought market conditions. The next technical support is seen at the level of $45.46.

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Market Snapshot: Gold is close to the trend line support

The mid-term trend line support around the level of $1,238 is being tested again by the bears. This support is very important as the 200 DMA is lying just around this level, so any breakout below would have long-lasting consequences for the bulls. The next important technical support is seen at the level of $1,213.

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USD/CAD approaching major support, prepare to buy

Forex analysis review
USD/CAD approaching major support, prepare to buy

Elliott wave analysis of EUR/NZD for July 3, 2017

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Wave summary:

We have seen the expected decline from 1.5711, but it has not been able to break below support at 1.5480 yet. This could still be seen, but then minor resistance at 1.5639 ideally should be able to cap the upside. If this resistance is broken then a running flat, will be the most likely corrective pattern and a new impulsive rally towards 1.6232 already developing.

R3: 1.5931

R2: 1.5801

R1: 1.5712

Pivot: 1.5600

S1: 1.5500

S2: 1.5450

S3: 1.5400

Trading recommendation:

We are long EUR from 1.5645 with stop placed at 1.5210. If you are not long EUR yet, then buy near 1.5450 or upon a break above 1.5639 and use the same stop at 1.5210.

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Elliott wave analysis of EUR/JPY for July 3, 2017

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Wave summary:

We have seen the expected corrective decline into the 127.00 - 127.81 area, but the correction in wave iv does not look complete yet and more sideways correction remains expected before the next rally higher towards at least 130.19 and possibly even higher.

The ideal target for this rally is seen at 133.34 where wave C will be equal in length to wave A.

R3: 130.19

R2: 129.43

R1: 128.83

Pivot: 128.50

S1: 128.08

S2: 127.82

S3: 127.41

Trading recommendation:

We are long EUR from 124.46 with stop placed at 126.40. If you are not long EUR yet, then buy near 127.85 and use the same stop.

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of EUR/USD for July 03, 2017

EURUSD.jpg

When the European market opens, some Economic Data will be released such as Unemployment Rate, Italian Monthly Unemployment Rate, Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, Spanish Manufacturing PMI. The US will release the Economic Data, too, such as Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI, so, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1478.

Strong Resistance:1.1471.

Original Resistance: 1.1460.

Inner Sell Area: 1.1449.

Target Inner Area: 1.1422.

Inner Buy Area: 1.1395.

Original Support: 1.1384.

Strong Support: 1.1373.

Breakout SELL Level: 1.1366.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis of USD/JPY for July 03, 2017

USDJPY.jpg

In Asia, Japan will release the Consumer Confidence, Final Manufacturing PMI, Tankan Non-Manufacturing Index, and Tankan Manufacturing Index data, and the US will release some Economic Data, such as Total Vehicle Sales, ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI. So, there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 112.87.

Resistance. 2: 112.65.

Resistance. 1: 112.43.

Support. 1: 112.16.

Support. 2: 111.94.

Support. 3: 111.72.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of USDX for July 03, 2017

USDX ended last week in the red territory and it looks like we can expect some recovery to test the 200 SMA at H1 chart around 96.50. If the index manages to break above the resistance zone of 95.77, then that scenario could be possible. Instead, if we witness a break of last Friday's lows, next interest area for buyers is located around 95.10.

USDXH1.png

H1 chart's resistance levels: 96.77 / 97.20

H1 chart's support levels: 96.38 / 95.77

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USD Index breaks with a bearish candlestick; the support level is at 95.77, take profit is at 95.10 and stop loss is at 96.42.

The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of GBP/USD for July 03, 2017

GBP/USD continues to hover around 1.3000 and it's waiting for a catalyst that will take it to test the next psychological zone of 1.3100. However, gains will be limited during this week, but this scenario could change if UK politics' headlines hit the wires to move GBP pairs. To the downside, nearest support is located at 1.2923.

GBPUSDH1.png

H1 chart's resistance levels: 1.3011 / 1.3105

H1 chart's support levels: 1.2923 / 1.2756

Trading recommendations for today: Based on the H1 chart, buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3011, take profit is at 1.3105 and stop loss is at 1.2918.

The material has been provided by InstaForex Company - www.instaforex.com