Technical analysis of USD/JPY for June 07, 2018

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USD/JPY is expected to trade with a bullish outlook. The pair keeps trading higher while being supported by the ascending 50-day moving average. It has managed to hold the key 110.00 level as it is around the 20-period moving average. A key support level has been located at 109.85 (a reaction low seen yesterday, June 6). The intraday outlook is still bullish, and the pair should target 110.55 on the upside.

Fundamental Overview: The dollar fell yesterday, weighed down by weaker-than-expected U.S. economic data and a rising euro. U.S. worker productivity rose more slowly than originally estimated in the first three months of 2018, a potential headwind to stronger economic growth going forward. According to Commerce Department, the U.S. exported a record amount of oil and fuel in April, helping to narrow the nation's trade gap while giving the economy a lift. The country shipped $19.9 billion in petroleum, a category that includes crude oil, liquefied gases and fuels such as gasoline to other countries in April. Investors have been quick to react to U.S. economic data in recent weeks, as they try to gauge the pace at which the Federal Reserve will tighten monetary policy this year. Signs that uneven growth could give the Fed pause tend to hurt the dollar, as expectations of higher rates make the currency more attractive to yield-seeking investors.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 110.30, 110.55, 110.80Support levels: 109.45, 109.15, 108.90

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Technical analysis of AUD/USD for June 07, 2018

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AUD/USD is expected to trade with a bullish outlook. The pair is currently trading around the 20-day moving average while being well supported by the 50-day moving average. The relative strength index has managed to stand above the neutrality level of 50, showing a lack of downward momentum for the pair. As long as intraday bullishness is maintained, the pair should proceed toward the key 0.7700 level on the upside. However, losing the key support at 0.7635 would open a path toward 0.7610 on the downside.

Fundamental Overview: earlier today data shows Australia's construction industry expanded in May, a 16th-consecutive month in positive territory. The performance of construction index fell 1.4 points to 54; a reading above 50 indicates expansion. Solid Australian economic activity is unlikely to convince the RBA to raise the cash rate anytime soon. From a near-term monetary policy perspective, trends in wages and unemployment, and the housing market are the ones to focus on.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 0.7700, 0.7730, 0.7775

Support levels: 0.7635, 0.7610, 0.7590

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Review of AUD / JPY pair for the week of June 7 on simplified wave analysis

Wave picture of the H4 chart:

This scale of analysis refers to the last ascending section of the cross plot dated March 23. In a larger downward wave model, he claims a correction point. The wave is formed in the form of an "ascending flag".

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The wave pattern of the H1 chart:

The rising segment of the chart from May 30 reached the lower limit of the powerful resistance zone. The wave has a high potential, allowing to wait for the continuation of the price increase.

The wave pattern of the M15 chart:

Within the main short-term wave in recent days, there is a need for a counter correction. Given the impulse nature of the recovery, the decline is expected to be no further than the minimum level.

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Recommended trading strategy:

Sales are highly risky, only possible for transactions inside the day. For traders trading above the M15 timeframe, I recommend looking for buying signals in the settlement support area.

Resistance zones:

- 84.40 / 84.90

Support zones:

- 83.30 / 82.80

Explanations to the figures:

A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). The last incomplete wave for every time frame is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.

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

Technical analysis of GBP/USD for June 07, 2018

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GBP/USD is expected to trade with a bullish outlook. The pair posted a rebound from 1.3395 (the low of June 6) and broke above its 20-period and 50-period moving averages. The relative strength index has just landed on its neutrality level at 50 and is turning up. To conclude, as long as 1.3415 is not broken, look for a bounce to 1.3495. A break above this level would trigger a new challenge to 1.3525.

Fundamental Overview: Sterling is up on hopes of a soft Brexit and because some investors think the Bank of England will raise interest rates again this year.The U.K. government hasn't presented a set of guidelines for the future relations between the EU and the U.K., which may indicate a hard Brexit.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 1.3495, 1.3525, 1.3560

Support levels: 1.3395, 1.3355, 1.3310

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

Indicator analysis. Daily review of GBP / USD pair for June 7, 2018

On Thursday, there is no expected strong calendar news and the market will work on technical analysis.

Trend analysis (Figure 1).

On Wednesday, the price continued to move up. The market moved upward to test, but it could not overcome 21 average EMA, The market moved upward to test, but could not overcome the 21-day EMA. Therefore on Thursday, there could be a second attempt to work upward. A complex analysis will more accurately determine where the price will go next.

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Fig. 2 (daily chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- volumes - down;

- candle analysis - down;

- trend analysis - up;

- Bollinger lines - down;

- Weekly schedule - up.

General conclusion:

On Thursday, it is possible for the GBP / USD pair to move up towards the first target 1.3462 with a recoil level of 23.6% (yellow dotted line).

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Indicator analysis. Daily review of EUR / USD pair for June 7, 2018

On Thursday, there is no expected strong calendar news and the market will work on technical analysis.

Trend analysis (Figure 1).

On Wednesday, the price continued to move up. On the third attempt, the recoil level of 23.6% 1.1758 (blue dotted line) was defeated. The market moved upward to test, but could not overcome the 21-EMA. Therefore, on Thursday, there could be a second attempt to work upward. A complex analysis will more accurately determine where the price will go next.

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Fig. 2 (daily chart).

Complex analysis:

- Indicator analysis - up;

- Fibonacci levels - up;

- volumes - down;

- candle analysis - down;

- trend analysis - up;

- Bollinger lines - down;

- Weekly schedule - up.

General conclusion.

On Thursday, the market will move up with the first goal 1.1830 on the upper fractal (red dotted line).

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Review of GBP / USD pair for a week of June 7 on simplified wave analysis

The wave pattern of the H4 graph:

The direction of short-term trends of the pound sterling major pair since the end of January is set by the downward wave. On a higher timeframe, it became a correction. The wave has reached the minimum possible extension. The necessary proportions of all its parts have been achieved.

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The wave pattern of the H1 graph:

The bearish wave of April 17 forms the final part (C) of a larger model. The price reached the section of a powerful turning zone. Turn signals have not been observed.

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The wave pattern of the M15 chart:

The bullish wave of May 29 does not have a reversal potential. In the structure of the dominant wave, it forms a section for correction. The growth potential is limited by the zone of resistance.

Recommended trading strategy:

Trading on high timeframe is worth paying attention to the emerging signals of purchase. Supporters of inter- and intraday trading have the opportunity to make short-term sales.

Resistance zones:

- 1.3560 / 1.3610

Support zones:

- 1.3220 / 1.3170

Explanations to the figures:

A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (ABC). The last incomplete wave for every timeframe is analyzed. Zones show the calculated areas with the greatest probability of a turn.

Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.

Attention: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.

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

Technical analysis of EUR/USD for June 07, 2018

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Technical Outlook: EUR/USD is expected to trade with a bullish outlook. The pair has reached the upper Bollinger band, calling for an upward acceleration toward the overhead resistance at 1.1875. Support is provided by the ascending 20-period moving average, which stays above the 50-period one. And the relative strength index is well directed in the 60s, showing continued upward momentum for the pair. Intraday bullishness persists, and the pair should target 1.1875 upon crossing 1.1855. Key support should be found at 1.1780.

Fundamental Overview: Exports of goods and services eased growth in the eurozone in the first three months of 2018. This is a sign the currency area's recovery may be vulnerable to the trade dispute with the U.S.

The European Union's statistics agency earlier today said that gross domestic product—the broadest measure of goods and services produced in an economy—grew at an annualized rate of 1.5% in the first quarter, slightly down on its previous estimate of 1.6% and a marked slowdown from the final quarter of 2017. Economists have largely attributed the first-quarter slowdown to a combination of unusually cold weather, strikes in the eurozone's two largest members, and a severe influenza outbreak in Germany.

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 1.1855, 1.1875, 1.1910

Support levels: 1.1780, 1.1760, 1.1730

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

Global macro overview for 07/06/2018

Elon Musk's charm continues to work for investors.

After the last assurances of President of Tesla inc. that the production speed of Tesla model 3 accelerates and the capacity of the production line reaches the target level of 5,000 units per week, the company's shares rose 10% in one day. Tesla has not had such a good day in the stock market for almost 3 years.

The improvement on the stock exchange took place after Musk's Tuesday meeting with the shareholders of the company. The creator of the brand said on the spot that a positive cash flow will appear in the report by the end of the year and it is very likely that the production of the model 3 at the level of 5000 items/week is very likely this year.

Elon Musk undoubtedly has the gift to charm investors when they are beginning to doubt that they will ever see net profit in company reports. Recall that for the first quarter of 2018 Tesla recorded a record loss, and despite the increase in production, customers are already losing patience waiting for their copy of the model 3. Almost one-quarter of orders were canceled and the advance paid back. Since the launch of subscriptions for model 3 only 8.0% the ordering party has got its car.

Let's now take a look at the Tesla stock technical picture in the daily time frame. Despite the considerable growth, Tesla shares are still priced lower than last year. Wednesday's increase was 10 percent. - nominally about $30. The price of the shares increased from 290 to 320 dollars per share. The maximum from 2017 is almost $ 390 - then Tesla's capitalization turned out to be larger than the biggest giants of the automotive industry, such as Ford or General Motors.

Currently, the price has broken through the 61% Fibo at the level of $315.59 and made a new local high at the level $322.00. The momentum remains strong and it is far from the overbought levels. In this situation, the next target for bulls is seen at the level of 78% at $334.55 and then the price might test the long-term trend line resistance from below. The immediate technical support is seen at the level of $312.00.

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NZD/USD Intraday technical levels and trading recommendations for for June 7, 2018

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The price zone of 0.7320-0.7390 stood as a significant supply zone during recent bullish pullback. The bulls failed to execute a successful Bullish breakout above 0.7400 during the previous week's consolidations.

The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred.

Since April 13, significant bearish pressure has been applied. This probably turns the short-term outlook for the NZD/USD pair into bearish giving considerable significance to the multiple-top reversal pattern.

That's why, bearish breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.

The bearish scenario needs obvious bearish persistence below 0.7050 to maintain significant bearish momentum towards 0.6860 and 0.6820. That's why, the price level of 0.7050 is currently considered a key-level for the NZD/USD bears.

Any bullish breakout above the price level of 0.7050 hinders further bearish decline allowing bullish pullback to occur towards 0.7170-0.7220.

On the other hand, when bearish momentum persists, the price zone of 0.6820-0.6780 will be the next destination for the NZD/USD pair. It should be watched for bullish rejection and a possible valid BUY entry.

The current bullish pullback towards the price level of 0.7050 (Broken Demand-Level) should be watched for a valid SELL entry. S/L should be placed above 0.7100.

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Intraday technical levels and trading recommendations for EUR/USD for June 7, 2018

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Daily Outlook

The short-term outlook turns to become bearish as long as the EUR/USD pair keeps trading below the broken uptrend as well as the lower limit of the depicted consolidation range remains broken.

Bearish persistence below the price level of 1.2200 allowed further bearish decline towards the price levels of 1.1990 and 1.1880.

The price zone (1.1850-1.1750) failed to offer sufficient bullish demand when a descending high was established around the price level of 1.1980.

The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, significant bearish pressure is being applied since then.

As bearish momentum dominates, bearish persistence below 1.1700-1.1750 (zone of previous daily lows) was maintained to enhance further bearish decline towards 1.1520 and probably 1.1420.

The price zone (1.1415-1.1520) stood as a prominent Demand zone where the current bullish pullback was established on May 30.

Hence, conservative traders are waiting for the current bullish pullback towards the current price levels (1.1800-1.1850) for a valid SELL entry. S/L should be placed above 1.1530.

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Daily analysis of EUR/JPY for June 7, 2018

EUR/JPY

It is interesting to see this cross going in a perpetual bullish manner, gradually breaching one supply zone after the other. Since testing the demand zone at 125.00, price has gained roughly 500 pips, thus making the bias on the market to turn bullish. Price is now above the demand zone at 129.50, targeting the supply zone at 130.00 and 130.50.

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The EMA 11 is now above the EMA 56, and the RSI period 14 is above the level 50. This shows a Bullish Confirmation Pattern in the chart. The fundamental figures coming for the markets are not strong today; but they may have impact.

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Daily analysis of USD/JPY for June 7, 2018

USD/JPY

Since a bullish signal was generated in the market, price has continued going upwards in a slow and steady manner, and that is something that can be sustained as long as the Yen continues to be weak. Price is above the demand level at 110.00 and it may reach the supply levels at 111.00 and 111.50 soon.

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The USD/JPY is now a bullish market, as the EMA 11 crosses the EMA 56 to the upside. The RSI period 14 is above the level 50. It is possible that price may gain another 100 pips before the end of this week.

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Daily analysis of USD/CHF for June 7, 2018

USD/CHF

There remains a downside bias on the USD/CHF pair and price is going southwards gradually. It is now below the resistance level at 0.9900, and it may reach the support levels at 0.9850 and 0.9800. Since the trend has been going on for some weeks in a row, it is supposed to continue for the next several trading days.

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The condition in the market has changed very little, and that is something that will not last long. There is a Bearish Confirmation Pattern in the 4-hour chart and the Williams' % Range period 20 is not far from the oversold region.

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The Fed is more hawkish than the ECB, especially at Trump

EUR / USD pair

The market environment was calm yesterday. In the eurozone, the indicator of business activity in the retail sector increased from 48.6 to 51.7 in May. In the US, the trade balance for April was better than the forecast of -46.2 billion dollars against -50.0 billion and exports recorded 211.25 billion dollars. This cannot be anything but inspire the White House to further trade with the EU. Labor costs in the final assessment for the first quarter were revised to increase from 2.7% to 2.9%. Stock index S&P 500 added 0.86%, but the euro once again showed growth on a new wave of reasoning about the completion of the QE program by the ECB by the end of this year. Yesterday, in the speech of Peter Praet and Jens Weidman confirmed the intentions of the regulator at the next meeting to discuss the plan for completing this stimulus. However, the base rate will not increase for a long time.

The ECB meeting will be next week on Thursday, and the Fed meeting on the day before. Therefore, taking into account the news from the ECB members, investors can calmly prepare to raise the rate of the Fed. And this factor may be stronger than economic data, while the corrective growth of the euro is 250 points, it will be convenient to close the purchases against the news. Today, Germany is expected to increase industrial orders for April by 0.7%. The indicator is good in itself but the March decline was -0.9%, although the annual growth is expected to be 3.6% against 3.1% earlier. In France, the trade balance for April is projected to improve from -5.3 billion euro to -5.1 billion. Retail sales in Italy are expected to grow by 0.2%, but there was a decrease of -0.2% in the previous month. The eurozone's GDP in the 2nd estimate for the 2nd quarter is expected to remain unchanged at 0.4%.

According to the US, the data today are secondary, but, according to expectations, it is unambiguously positive. Weekly applications for unemployment benefits are expected to be 223,000 against 221,000 earlier. The volume of consumer loans for April is projected at $ 13.9 billion compared to $ 11.6 billion in March, which will be the second month of growth in volumes. Tomorrow the G7 summit will open, where the trade wars will be discussed. We expect the euro to be torn in the range of 1.1720 / 65.

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USD/CHF analysis for June 07, 2018

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Recently, the USD/CHF pair has been trading downwards. The price tested the level of 0.9817. According to the H1 time – frame, I found broken symmetrical triangle, which is a sign that sellers are in control. My advice is to watch for potential selling opportunities. The downward target is set at the price of 0.9760.

Resistance levels:

R1: 0.9886

R2: 0.9911

R3: 0.9935

Support levels:

S1: 0.9835

S2: 0.9810

S3: 0.9785

Trading recommendations for today: watch for potential selling opportunities.

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Analysis of Gold for June 07, 2018

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Recently, Gold has been trading sideways at the price of $1,297.95. According to the H1 time – frame, I found a potential intraday bearish flag in creation. I expect a downward movement to re-test a low at the price of $1,293.00 and then a potential upward movement to visit $1,303.60. My advice for intraday trading is to watch for a breakout of the otential bearish flat to confirm a further downward price.

Resistance levels:

R1: $1,305.75

R2: $1,310.00

R3: $1,314.00

Support levels:

S1: $1,297.45

S2: $1,293.45

S3: $1,289.20

Trading recommendations for today: watch for potential intraday selling opportunities.

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The pound has no reason to grow

GBP / USD pair

The British pound grew slightly yesterday by 19 pp, following the euro's growth. The words of a member of the BoD Committee of the Bank of England, Ian McCafferty, with hints of the regulator's ability to even more soften the monetary policy "in case of an economic downturn.", look pessimistic for the "bulls". Under the economic downturn, investors understand Britain's exit from the EU without a trade agreement or with a bad agreement and the Economic data on England was not good yesterday. There will be an index of prices for residential property to be released today from Halifax for the last month with a forecast of 1.1% against -3.1% in April. Also tomorrow, there will be secondary data on consumer sentiment.

On Monday, the U.K. data on industrial production and construction will be released. The forecast is still on the volume of construction with the expected decline on the forecast to -5.7% y/y (-2.2% m/m) from -4.9% y/ y. Thus, the pound simply has no reason to grow before the Fed meeting. We are waiting for the price of 1.3330.

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Bitcoin analysis for June 07, 2018

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Bitcoin (BTC) has been trading upwards. As I expected, the price tested the level of $7.710. Indian cryptocurrency exchanges have followed the Supreme Court's suggestion for them to present their cases to the Reserve Bank of India. They have sent letters to the central bank, offering alternatives to the RBI's banking ban. The technical picture on Bitcoin looks neutral to bullish.

Trading recommendations:

According to the H1 time - frame, I found that price broke the supply trendline in the background, which is a sign that buyers are in control. I also found a broken intraday bullish flag, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward targets are set at the price of $7.755 and at the price of $8.075.

Support/Resistance

$7.710 – Intraday resistance

$7.630– Intraday support

$7.755 – Objective target 1

$8.075 – Objective target 2

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

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Trading plan for the European session on June 7 EUR / USD

To open long positions for EURUSD, you need:

While the trade is higher than 1.1780, the demand for euro will continue to be maintained and the main task of buyers for the first half of the day will be a breakthrough and a consolidation at the level of 1.1828. Above this level, new monthly highs of 1.1875 and 1.1923 will open and it is where we recommend locking in profits. In case of a decline under the support level of 1.1780, buying is best on the test at 1.1739 or on a rebound from 1.1695.

To open short positions for EURUSD, you need:

The unsuccessful consolidation above the resistance level of 1.1828 with a return to it will be the first signal for opening short positions in the euro with the first goal of reducing to the important support level of 1.1780. The consolidation under this level will lead to the formation of a larger downward correction to the areas of 1.1739 and 1.1695, where it is recommended to lock in profits. In case of growth above the level of 1.1828, selling the euro can be done on the rebound from 1.1875 and 1.1923.

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Description of indicators

MA (moving average) 50 days - yellow

MA (moving average) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

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Euro and pound continue to recover

Eurozone

The euro continues to recover against the backdrop of a re-evaluation of the ECB's plans to normalize monetary policy.

The chief economist of the ECB, Peter Praet, said on Wednesday that the ECB will begin discussing the curtailment of the asset repurchase program at a meeting in a week. Earlier, members of the ECB leadership shied away from voicing any specifics on this issue, and the consensus opinion of the market was that the discussion would begin no earlier than the July meeting. Praet changed the accents, which means that on June 14 there will be new benchmarks for the euro.

Comments from the ECB's top officials were expected, as the regulator noted in the May economic bulletin, both market and estimated indicators of long-term inflation expectations remain unchanged and suggest a gradual move to 2%.

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The risk of deflation remains low, prices for residential real estate in the euro area are growing, the growth rate of the average wage by the end of 2017 and in 1 sq. km. in 2018 also became higher, which in general gives a rather favorable picture of price expectations and deprives the ECB of the opportunity to delay the issue of rates.

Some threat came from the general slowdown of economic activity in the euro area, but this factor was predicted after two years of active growth, and secondly, it was short-lived. Recent polls from Ifo and Markit indicate that business activity again began to grow.

Thus, the June meeting of the ECB may shift the focus on the issue of the dynamics of the EURUSD. The emerging growth of the euro was considered until recently as a short-term correction, but now there is every reason to believe that the euro formed the basis and begins the growth phase. Until the end of the week, the EURUSD rate can rise to 1.1870.

United Kingdom

The pound is recovering both against the background of a correctional decline in the dollar and in response to macroeconomic data that are quite positive from the beginning of the week. Business activity in the construction sector in May stayed at 52.5p (it was forecasted to decrease to 52p, but the positive added the refusal of the Bank of England to raise the rate last month). In the services sector, there was a growth to 54p where 53p was forecasted. Retail sales increased significantly according to the BRC version where in May, the growth was 2.8% vs. -4.2% a month earlier.

At the same time, the growth of the pound, in contrast to the euro, runs the risk of ending much earlier. We can not ignore the slowdown in economic growth in the UK, as well as the threat of lower inflation. The effect of the fall of the GBPUSD after the referendum is over, and consumer demand is under threat because of the low level of real wages.

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After the meeting of the FOMC and the ECB in the middle of next week, attention will be shifted to the EU summit, wherein significant issues of Brexit will be discussed. Until then, the pound can feel confident, but then the decline may resume.

Until the end of the week, the pound will try to rise a little higher, with the attempt to likely reach 1.3550.

Oil

The reaction of oil futures to the bearish report on reserves in the US was short-lived. A small decline was immediately redeemed again, which indicates long-term bullish sentiment among players. Before the OPEC meeting in late June, oil is likely to remain within the limits of trade ranges, which for Brent are 74.30 / 77.30 dollars per barrel.

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Global macro overview for 07/06/2018

The Chinese department of trade confirmed that it is in talks with the US regarding the purchase of agricultural goods and energy. It was acknowledged that "specific" progress was made in the negotiations, details require "catching up" and the initiative is now on the US side. Mass media, on the other hand, speculates that Trump may adopt a "confrontational" tone after the last meeting of the G-7 finance ministers, the United States has been criticized by 6 other states for customs practices.

The dollar continues to sell against the basket of currencies. The issue of the global investor positioning for information from the FED meeting next week (June 12-13) is not yet taken up by the markets, although it seems that it is a good time, and the dollar has undergone a healthy correction in recent days. One can get the impression that the G-7 Summit in Canada is starting to become a problem, with the issue of US trade policy becoming the main topic. It is speculated that Trump may adopt a confrontational tone, which, of course, would not have been well received. Moreover, yesterday the European Commission announced that higher tariffs on selected American products could be introduced from July 1, which is a form of retaliation for not placing the EU on the list of countries excluded from higher duties on steel and aluminum. In conclusion, the G-7 summit may result in the escalation of mutual tensions, but it does not have to. This way or another it is an event worth to keep an eye on as it will have an impact on the financial markets.

The European session in the foreign exchange market is intensifying the pressure of USD sales. EUR/USD is the main driver of changes and pushes 1.1830, but also GBP / USD broke by 1.3470. Despite increases in European exchanges and growing yields on US debt (10Y 2.983%), USD / JPY is not able to stay above 110. The weakness of USD is less visible in relation to the currencies: CAD, NZD, AUD. Overall, therefore, everything seems to be a separate correction of the strength of the USD, rather than the impact of fluctuations in risk appetite or the impact of correlation with the debt market.

Let's now take a look at the US Dollar Index technical picture at the daily time frame. Historically, the dollar did not perform well in June. Even terribly to be specific. I the previous decade, the dollar index lost only harder in July and April. On average, it fell by 0.6% in June, moreover, the American currency lost in eight out of ten recent cases.

Currently, at the intraday hourly time frame, the market is still heading downward after the technical supports at the levels of 93.71 and 93.42 were violated. The next support is seen at the level of 93.11 and 92.85. Please notice the oversold market conditions and growing bullish divergence are indicating a short-term pull-back possibility, but the overall bias remains bearish.

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Political risks are minimal for the euro

The reduction of political tensions in Italy and Spain, as well as progress in the negotiations between the US and China on trade relations continue to support risky assets.

The European currency has crept up to fairly large levels of resistance, a breakthrough which will lead to a more significant upward wave. Any statements by European Central Bank officials related to the asset buy-back program may support further euro growth in the short term.

Yesterday, it became known that a government was formed in Spain, the main part of which included pro-European ministers. Thus, Spanish Prime Minister Pedro Sanchez showed his commitment to the European Union, and also strengthened the political influence of Spain in Brussels.

It is important to note that in Italy, things are completely different, where the government consists more of populists who oppose European integration.

Yesterday, it also became known that the progress of negotiations between the US and China is continuing, which allows reaching agreements in different areas. This was announced yesterday at the Ministry of Commerce in China. Despite this, details of the negotiations were not disclosed.

As for the technical picture of the EURUSD pair today, the upward trend will directly depend on the resistance area of 1.1830, the breakthrough of which will open new highs in the area of 1.1875 and 1.1920 for risky assets. To return to the bear market, it is necessary to reduce to a large level of support 1.1780.

The Australian dollar declined against the US dollar in the Asian session after the data on the surplus turned out to be worse than the economists' forecasts.

According to the report of the Australian Bureau of Statistics, the positive balance of Australia's foreign trade in April this year was 0.977 billion Australian dollars. Economists predicted that the surplus in the reporting period would be 1.0 billion Australian dollars.

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Data for March were revised. During that period, the foreign trade surplus amounted to 1.73 billion Australian dollars against 1.5 billion Australian dollars in the preliminary data.

The decrease in the balance was directly related to the fall in exports, which decreased by 2.0% compared to the previous month, while imports remained unchanged. Exports of coal fell by 7%, and exports of iron ore by 4%.

The Canadian dollar yielded a number of positions to the US dollar even after the release of good data, which indicated a reduction in Canada's foreign trade deficit in April this year.

According to the report, the deficit of foreign trade in goods in April fell to 1.90 billion Canadian dollars, while economists expected the deficit to be 3.4 billion Canadian dollars.

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Trading plan for the European session on June 7 GBP / USD

To open long positions for GBP / USD, you need:

To maintain the upward trend, buyers are required to breakthrough and consolidate above the resistance level of 1.3440. From this level yesterday, there was a downward correction in the pound. Only after this, will it be possible to count on a new wave of growth in the area of highs 1.3487 and 1.3523, where it is recommended to lock in profits. In case of a pound drop, long positions can be opened to rebound from 1.3386.

To open short positions for GBP / USD, you need:

An unsuccessful break above the level of 1.3440 with a return to it will be the first signal for the bears, which will try to quickly return the pair to the support area of 1.3386. In case of a breakout and growth above the level of 1.3440 in the morning, opening short positions against the trend is best to return about the level of 1.3487 and a rebound from 1.3523.

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Description of indicators

MA (moving average) 50 days - yellow

MA (moving average) 30 days - green

MACD: fast EMA 12, slow EMA 26, SMA 9

Bollinger Bands 20

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Fractal analysis for major currency pairs as of June 7

Dear colleagues.

For the EUR / USD pair, the continuation of the upward trend is expected after passing through the noise range of 1.1824 - 1.1849. For the GBP / USD pair, the continuation of the upward movement is possible after the breakdown of 1.3457. The level of 1.3381 is the key support. For the USD / CHF pair, the continuation of the move downwards is expected after passing through the price of the noise range at 0.9842 - 0.9826. The level of 0.9897 is the key support. For the USD / JPY pair, the continuation of the upward movement is expected after the breakdown at 110.30. The level of 109.46 is the key support. For the EUR / JPY pair, the continuation of the upward trend from May 29 is expected after the breakdown of 129.85. The level of 128.68 is the key support. For the GBP / JPY pair, we follow the development of the upward cycle from May 29. The continuation of the upward movement is expected after the breakdown of 148.00. The level of 146.90 is the key support.

Forecast for June 7:

Analytical review of currency pairs in the scale of H1:

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For the EUR / USD pair, the key levels on the scale of H1 are: 1.1955, 1.1907, 1.1849, 1.1824, 1.1752, 1.1721, 1.1672 and 1.1631. Here, we continue to follow the upward structure of May 30. The continuation of the development of the upward trend is expected after passing the price of the noise range of 1.1824 - 1.1849. In this case, the target is 1.1907. Near this level is the consolidation of the price. The potential value for the top is the level of 1.1955. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 1.1752-1.1721. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.1672. This level is the key support for the upward structure of May 30. Its breakdown will lead to the development of a downward structure. In this case, the potential target is 1.1631.

The main trend is the upward structure of May 30.

Trading recommendations:

Buy: 1.1850 Take profit: 1.1905

Buy 1.1908 Take profit: 1.1955

Sell: 1.1750 Take profit: 1.1722

Sell: 1.1718 Take profit: 1.1674

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For the GBP / USD pair, the key levels on the scale of H1 are 1.3548, 1.3495, 1.3457, 1.3381, 1.3354, 1.3311 and 1.3273. Here, we follow the upward structure from May 29. Currently, we are waiting for the movement towards the level of 1.3457. The breakdown of this level, in turn, will lead to a movement towards the level of 1.3495. Near this level, we expect the consolidation of the price. The potential value for the top is the level of 1.3548. From this level, we expect a departure towards correction.

Short-term downward movement is possible in the area of 1.3381 - 1.3354. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3311. This level is the key support for the top. Its breakdown will lead a downward structure. In this case, the potential target is 1.3273.

The main trend is the upward structure of May 29.

Trading recommendations:

Buy: 1.3460 Take profit: 1.3490

Buy: 1.3497 Take profit: 1.3545

Sell: 1.3380 Take profit: 1.3355

Sell: 1.3352 Take profit: 1.3313

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For the USD / CHF pair, the key levels on the scale of H1 are: 0.9954, 0.9927, 0.9897, 0.9876, 0.9842, 0.9826, 0.9784 and 0.9754. Here, the subsequent development of the downward structure from May 29 is expected after passing the price of the noise range at 0.9842 - 0.9826. In this case, the target is 0.9784. The potential value for the bottom is the level of 0.9754. Upon reaching this level, we expect a rollback upward.

Short-term upward movement is possible in the area of 0.9876 - 0.9897. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.9927. This level is the key support for the downward structure. Its breakdown will allow us to count on the movement towards 0.9954.

The main trend is a local downward structure from May 29.

Trading recommendations:

Buy: 0.9876 Take profit: 0.9895

Buy: 0.9898 Take profit: 0.9925

Sell: 0.9826 Take profit: 0.9786

Sell: 0.9782 Take profit: 0.9755

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For the USD / JPY pair, the key levels on a scale are: 112.24, 111.90, 111.31, 110.92, 110.69, 110.30, 109.79, 109.46 and 108.91. Here, we follow the development of the upward structure of May 29. The continuation of the upward movement is expected after the breakdown of 110.30. In this case, the target is 110.69. In the area of 110.69 - 110.92 is the consolidation of the price. The breakdown of the level of 110.92 will allow us to count on the movement towards the level of 111.31. We consider the level 112.24 to be a potential value for the top. After reaching this level, we expect consolidation in the area of 112.24 - 111.90.

Short-term downward movement is possible in the area of 109.79 - 109.46. The breakdown of the last value will lead to in-depth correction. Here, the target is 108.91. This level is the key support for the top.

The main trend is an upward cycle from May 29.

Trading recommendations:

Buy: 110.30 Take profit: 110.66

Buy: 110.92 Take profit: 111.30

Sell: 109.77 Take profit: 109.47

Sell: 109.44 Take profit: 108.93

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For the CAD / USD pair, the key levels on the scale of H1 are: 1.3278, 1.3219, 1.3159, 1.3093, 1.3053, 1.2905, 1.2856, 1.2819 and 1.2758. Here, we follow the upward structure of May 31. The development of this level is expected after passing the price of the noise range at 1.3053 - 1.3093. In this case, the target is 1.3159. Near this level is the consolidation of the price. The breakdown of 1.3160 will lead to the movement towards the level of 1.3219. From this level, there is a high probability of leaving the correction. The potential value for the top is the level of 1.3278.

Short-term downward movement is possible in the range 1.2905 - 1.2856. The breakdown of the last value will lead to the development of the the downward structure. In this case, the potential target is 1.2758.

The main trend is the upward structure of May 31.

Trading recommendations:

Buy: 1.3093 Take profit: 1.3156

Buy: 1.3162 Take profit: 1.3216

Sell: 1.2905 Take profit: 1.2858

Sell: 1.2819 Take profit: 1.2760

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For the AUD / USD pair, the key H1 scale levels are: 0.7756, 0.7731, 0.7692, 0.7666, 0.7628, 0.7607 and 0.7573. Here, we follow the development of the upward cycle of May 30. The continuation of the upward movement is expected after the breakdown of 0.7666. In this case, the target is 0.7692. In this range is the consolidation of the price. The breakdown at the level of 0.7692 should be accompanied by a pronounced upward movement. Here, the target is 0.7731. The potential value for the top is the level of 0.7756. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 0.7628 - 0.7607. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7573. This level is the key support for the upward structure.

The main trend is the upward cycle of May 30.

Trading recommendations:

Buy: 0.7666 Take profit: 0.7690

Buy: 0.7694 Take profit: 0.7730

Sell: 0.7626 Take profit: 0.7608

Sell: 0.7602 Take profit: 0.7575

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For the EUR / JPY, the key levels on the scale of H1 are: 132.58, 131.40, 130.83, 129.85, 129.22, 128.68 and 127.77. Here, we follow the upward structure of May 29. The continuation of the upward movement is expected after the breakdown of 129.85. In this case, the target is 130.83. In the area of 130.83 - 131.40 is the consolidation of the price. The potential value for the top is the level of 132.58. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 129.22 - 128.68. The breakdown of the last value will lead to in-depth correction. Here, the target is 127.77. This level is the key support for the top.

The main trend is the upward structure of May 29.

Trading recommendations:

Buy: 129.87 Take profit: 130.80

Buy: 131.42 Take profit: 132.55

Sell: 129.20 Take profit: 128.70

Sell: 128.65 Take profit: 127.80

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For the GBP / JPY pair, the key levels on the scale of H1 are: 149.48, 148.79, 147.96, 147.50, 146.89, 146.38 and 145.64. Here, we follow the development of the upward cycle of May 29. Short-term upward movement is possible in the area of 147.50 - 147.96. The breakdown of the last value should be accompanied by a pronounced upward movement. Here, the target is 148.79. The potential value for the top is the level of 149.48. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 146.89 - 146.38. The breakdown of the last value will lead to in-depth correction. Here, the target is 145.64. This level is the key support for the top.

The main trend is the upward cycle from May 29.

Trading recommendations:

Buy: 147.50 Take profit: 147.94

Buy: 148.00 Take profit: 148.75

Sell: 146.85 Take profit: 146.40

Sell: 146.35 Take profit: 145.70

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Fractal analysis for GOLD on June 7

Analytical review of Gold.

For Gold, the price is in the area of the medium-term upward structure of May 21 and forms the potential for a downward movement from May 31. The level of 1287.67 is the key resistance for the downward movement. The resumption of the upward movement is expected after the breakdown of 1301.00

Forecast for June 7:

Analytical review on the scale of H1:

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For Gold, the key key levels on the scale of H1 are: 1317.09, 1308.97, 1305.28, 1300.97, 1287.67 and 1281.60. Here, the continuation of the upward movement is expected after the breakdown of 1300.97. In this case, the first target is 1305.28. In the area of 1305.28 - 1308.97, is the consolidation of the price. The breakdown of the level of 1308.97 should be accompanied by a pronounced upward movement. Here, the potential target is 1317.09

The level of 1287.70 is the key support for the top. Its breakdown will lead to the development of a downward trend. Here, the target is 1281.60.

The main trend is the medium-term upward structure of May 21, the stage of the initial conditions.

Trading recommendations:

Buy: 1301.00 Take profit: 1305.00

Buy 1305.30 Take profit: 1308.90

Sell: 1287.60 Take profit: 1283.00

Sell: Take profit:

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Technical analysis of GBP/JPY for June 07, 2018

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On the 4-hour chart, the GBP/JPY pair is moving in the upward channel, but there is a divergence between the Stochastic Oscillator and the price. As long as the price does not break out and closes above the 147.97 level, there is a high probability that in a few days the price will make a significant correction from the upside movement with the first target at 147.00 which coincides with the Support level. Then, the price will continue again to the upside to test the resistance level of 149.11.

(Disclaimer)

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Ichimoku cloud indicator analysis of EUR/USD for June 7, 2018

Today, we look at the weekly chart of EUR/USD. Why have we have been bullish about this pair?Pessimism was at its highest near 1.15-1.16 when everyone was talking about Italexit and expressed fears of the Eurozone break up.analytics5b18d926b6b17.png

Black line - horizontal resistance

At market peaks and bottoms sentiment is at extremes. The same was the case when EUR/USD was trading around 1.15. On a weekly basis, we have two very bullish signs. First, last week's candle was a bullish hammer followed by a bullish week. Price bounced strongly off the 38% Fibonacci retracement and the upper weekly cloud boundary. Cloud support is held. If price manages to move back above the black horizontal resistance and the weekly kijun-sen, then we will have a very bullish setup. We remain bullish.

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Technical analysis on Gold for June 7, 2018

Gold price remains below short-term resistance. Gold is ready for a spike higher towards $1,330 at least. I 'm bullish about Gold but we also have to be careful in case support of $1,290 fails to hold. If this is the case, we should expect Gold to move lower towards $1,275.

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Yellow line - medium-term resistance

Green lines - Fibonacci targets

Red lines - extension targets

Gold price has major resistance at $1,307. Short-term resistance is at $1,300. Support is at $1,290. Bulls need to break above the yellow line resistance in order to pick up speed and break the triple top at $1,307. If Gold price pulls back, this is considered a buying opportunity.

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Technical analysis of AUD/USD June 07, 2018

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The AUD/USD pair is now moving in the upward channel on the 4-hour chart. We've spotted a Divergence between the price and the Stochastic Oscillator. So, there is a possibility this pair will test its support at 0.7600 a few days later as long as the price does not break out and closes above 0.7678.

(Disclaimer)

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Daily analysis of USDX for June 07, 2018

USDX is off from the highs of June 5th and it seems we can expect further weakness towards the 93.12 level, once the index consolidates in favor of the bearish side. However, a recovery is expected to take place, but to achieve that, we should see a breakout of the 94.50 level, in order to allow a leg higher to test the resistance zone of 94.88.

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H1 chart's resistance levels: 94.88 / 95.53

H1 chart's support levels: 93.91 / 93.12

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD Index breaks with a bearish candlestick; the support level is at 94.88, take profit is at 95.53 and stop loss is at 94.22.The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of GBP/USD for June 07, 2018

GBP/USD has been trading within a bullish tone above the 200 SMA on H1 chart and it targets the resistance zone of 1.3455, where a breakout should open the doors to test the psychological level of 1.3500. On the flip side, the support level of 1.3341 should give up to allow a sharp decline towards the 1.3264 level. MACD indicator stays in favor of the bears.

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H1 chart's resistance levels: 1.3341 / 1.3455

H1 chart's support levels: 1.3264 / 1.3173

Trading recommendations for today: Based on the H1 chart, sell (short) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level is at 1.3264, take profit is at 1.3173 and stop loss is at 1.3354.The material has been provided by InstaForex Company - www.instaforex.com

Technical analysis: Intraday levels for EUR/USD, June 07, 2018

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When the European market opens, some economic data will be released such as French 10-y Bond Auction, Spanish 10-y Bond Auction, Revised GDP q/q, Italian Retail Sales m/m, French Trade Balance, and German Factory Orders m/m. The US will release a series of economic reports too such as Consumer Credit m/m, Natural Gas Storage, and Unemployment Claims. So, amid the loaded economic calendar, EUR/USD will trade with medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.1839.

Strong Resistance:1.1832.

Original Resistance: 1.1821.

Inner Sell Area: 1.1810.

Target Inner Area: 1.1782.

Inner Buy Area: 1.1754.

Original Support: 1.1743.

Strong Support: 1.1732.

Breakout SELL Level: 1.1725.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all Traders or 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.

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Technical analysis: Intraday level for USD/JPY, June 07, 2018

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In Asia, Japan will release the Leading Indicators. The US will release a series of economic reports such as Consumer Credit m/m, Natural Gas Storage, Unemployment Claims. So there is a probability the USD/JPY pair will trade with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 110.64.

Resistance. 2: 110.43.

Resistance. 1: 110.21.

Support. 1: 109.94.

Support. 2: 109.73.

Support. 3: 109.51.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all Traders or 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

Trading plan for 07/06/2018

The Asian session is a moderate weakening of the USD. Only AUD loses after the weaker than expected publication of the trade balance. EUR/USD is over 1.18, GBP/USD is flirting with 1.3450. USD/JPY is fighting to stay above 110.00. NZD/USD is growing to 0.7050. On Wall Street a clear rise (0.6-1.4%), but at night the futures on the SP500 remain stable and stand at 2772 points. Nikkei 225 grows almost 1.0%, Hang Seng 0.5% and only Shanghai Composite is slightly below the line. 10Y US debt yield returned to around 3.0%. The oil market is undergoing jerky trade. After descending to Monday at 64.20 after the DoE report on stocks and raw material production, the rate is over USD 65. An ounce of gold is valued at $ 1297, so no big change here as well.

On Thursday 7th of June, the event calendar is light with important data releases, but the global investors should keep an eye on Switzerland Unemployment Rate data, German Factory Orders data, Halifax House Price Index data from the UK and GDP revised data from the whole Eurozone. During the US session, the most important data are: Unemployment Claims and Continuing Claims from the US and Financial System Review data from Canada. There are some speeches scheduled as well from BOE Deputy Governor for Markets & Banking Sir David Ramsden, BOC Governor Stephen Poloz and BOC Senior Deputy Governor Carolyn Wilkins. The volatility on the markets might increase during this events.

Crude Oil analysis for 07/06/2018:

After the reading of Crude Oil Inventories data (an increase in crude oil inventories by 2.07M bbl, accompanied by a 4.6Mbbl increase in gasoline and 2.1m barrels in distillates), the exchange rate of Crude Oil fell by nearly 100 pips towards 64.50. Let me just add that production is record-breaking, reaching 10.8 million barrels a day and from week to week is growing continuously since the first half of February. The report is bearish in every detail and the drops in the price of Crude Oil should extend lower. So far the local low has been found at the level of $64.16, but if the bulls will not manage to break out above the yesterday's high at the level of $65.96 and head towards the next technical resistance at the level of $66.59, then the bears will likely take this opportunity to push the prices towards the support at the level of $63.72 or even below. The only positive clue for bulls is a growing bullish divergence between the price and RSI indicator that might help bullish case.

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Bitcoin analysis for 07/06/2018

Apple co-founder Steve Wozniak hopes that Bitcoin will become the single currency of the Internet. Therefore, Wozniak joins Jack Dorsey, general manager of Twitter and Square, in his enthusiastic belief that Bitcoin will become the only world currency: "I'm entering what Jack Dorsey says. I am not fully convinced that this will happen, but I certainly believe and I want it to be so ". At the Consensus Blockchain conference in New York, as reported by CNET, Dorsey also stated: "Customers can now buy and sell Bitcoins using the application. We noticed that this is a trait that our clients seek and we support Bitcoin because we see it as a step in the long-term path towards greater financial access for all".

Dorsey was right. Because Square, Inc. added BTC functions to its payment applications, the value of its shares increased significantly. As a result, in April last year, Dan Dolev, an analyst at Nomura Instinet, believing that this rising trajectory is likely to continue, raised Square's target price from $ 50 million to $ 65 million.

Dorsey and Wozniak remain faithful to their vision that the Internet will eventually have only one currency, most likely Bitcoin. Some time ago, Wozniak announced that Bitcoin is better than gold, and Dorsey added: "Bitcoin will overtake the dollar in importance as it will become the global internet currency in a decade".

As usual, time will tell.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The marked has bounced from the weekly pivot support at $7,304 and now is testing the local technical resistance at the level of $7,752. If this level will get violated, then the bulls will have the chance to test the key technical resistance at the level fo $7,890 and the whole breakout higher will remain valid. Moreover, a breakout higher would indicate the low of the wave 2/B is in place.

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BITCOIN Analysis for June 6, 2018

Bitcoin has been quite indecisive and corrective recently below $8,000 area where no definite trend pressure can be observed. The price has been quite in a downward bias recently. The price was expected to push lower to a certain support area before pushing higher but instead it rejected the bears and closed with a bullish Pin Bar shaped body daily candle. Though the dynamic level of 20 EMA and market structure are still bearish, certain correction and bearish pressure is still expected as the price remains below $8,000. The bullish bias in this case can be only trusted after the price breaks above $8,000 with a daily close which will push the price higher towards $10,000 in the future. For now, as the price remains below $8,000, certain correction and bearish pressure can be observed in the process.

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Fundamental Analysis of EUR/AUD for June 6, 2018

EUR/AUD has been quite impressive in the bearish bias which is widely expected to come to an end in the short term. AUD has been the dominant currency in the pair since Australia's Employment Change report was published with a significant increase, whereas EUR is still struggling in light of the ECB indecision on its monetary policy plans.

Today, the eurozone's retail PMI report was published with an increase to 51.7 from the previous figure of 48.6 which did not help the currency to sustain its bullish momentum it gained yesterday with certain impulsiveness.

On the other hand, today Australia's GDP report was published with an increase to 1.0% from the previous value of 0.5% which was expected to be at 0.9%. Such 100% increase in GDP helped AUD to gain good momentum over EUR that is expected to lead to further AUD gains in the coming days.

As for the current scenario, AUD is fundamentally quite strong in comparison to EUR, so AUD is going to keep momentum. Though recent economic reports from the eurozone are helping its currency to recover quite well, upcoming AUD gains might act quite slow in comparison to the earlier moves. However, AUD is still quite ahead of EUR and expected to continue dominating further in the nearest days.

Now let us look at the technical view. The price is currently quite bearish which is expected to push the price further downward in the coming days. Though yesterday's bullish candle confused the market sentiment for a while, the current market structure says that the price is likely to push lower towards 1.52 area before showing any bullish intervention in the process.

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