NZD/USD Intraday technical levels and trading recommendations for for July 2, 2018

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The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred on April 23.

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 price level of 0.7050 was considered a key-level for the NZD/USD bears That's why, bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.

As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for sellers to have a valid SELL entry. It's already running in profits. S/L should be lowered to 0.6800 to secure some profits.

Recently, the price zone of 0.6820-0.6780 was being challenged by the NZD/USD bears. This price zone was considered as a target level for current sellers.

The current bearish breakdown of the price zone 0.6820-0.6780 will probably allow further bearish decline towards 0.6700-0.6670 if the current bearish momentum is maintained on a daily basis.

Any bullish pullback towards the mentioned zone will probably offer a valid SELL entry around 0.6780-0.6820. S/L should be placed above 0.6850.

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Intraday technical levels and trading recommendations for EUR/USD for July 2, 2018

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Daily Outlook

In April 2018, the short-term outlook turned to become bearish when the EUR/USD pair maintained trading below the broken uptrend as well as the lower limit of the depicted consolidation range.

The price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990 where a descending high was established. However, the EUR/USD bulls failed to pursue towards higher bullish targets.

Instead, further bearish momentum was expressed in the market.

Recently, the price zone (1.1850-1.1750) offered significant bearish rejection and a valid SELL entry. Bearish target around 1.1520 has already been reached.

The price zone of 1.1520-1.1420 was considered a prominent bullish demand where a valid bullish BUY entry was offered during previous weeks' consolidations.

Initial Bullish target levels was located around 1.1750. However, significant bearish pressure was applied around 1.1700 which led to the current bearish decline again towards the price level of 1.1600.

Hence, the EUR/USD pair remains trapped inside a consolidation range between the depicted key-levels 1.1520 and 1.1700 until breakout occurs in either direction.

Bearish breakdown below 1.1520-1.1420 might occur if enough bearish pressure is applied. This would potentially enhance further bearish decline towards 1.1270 (recent consolidation range and demand level).

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BITCOIN Analysis for July 2, 2018

Bitcoin is currently struggling to push below $6,500 after the recent retest from the level while the bias is currently quite bearish in nature. After the recent bounce off the $5,500 area, the price is currently correcting itself just at the edge below $6,500 area. After the recent hack attacks, the bearish momentum increased quite impulsively but it failed to sustain the momentum it was expected to have. As of the current scenario, dynamic level of 20 EMA is holding the price as resistance to push higher below $6,500 area and it is expected to push lower towards $5,000 area in the coming days as the price remains below $6,500 area with a daily close.

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Technical analysis of USD/CAD for July 02, 2018

analytics5b3a0cece515b.pngThe USD/CAD pair continues to move downwards from the level of 1.3257, which represents the double top on the H1 chart. Last week, the pair dropped from the level of 1.3257 to the bottom around 1.3130. Today, the first resistance level is seen at 1.3227 followed by 1.3257, while daily support is seen at the levels of 1.3130 and 1.3093. According to the previous events, the USD/CAD pair is still trapping between the levels of 1.3227 and 1.3093. Thus, we expect a range of 137 pips in coming hours. The first resistance stands at 1.3227, for that if the USD/CAD pair fails to break through the resistance level of 1.3227, the market will decline further to 1.3130. This would suggest a bearish market because the RSI indicator is still in a negative area and does not show any trend-reversal signs. The pair is expected to drop lower towards at least 1.3093 in order to test the second support (1.3093). On the contrary, if a breakout takes place at the resistance level of 1.3257 (the double top), then this scenario may become invalidated.

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Technical analysis of GBP/USD for July 02, 2018

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Overview:

The GBP/USD pair opened below the daily major resistance (1.3276). It continued to move downwards from the level of 1.3196 to the bottom around 1.3131. Today, the first resistance level is seen at 1.3131 followed by 1.3196, while daily support 1 is seen at 1.3068. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.3068. So it will be good to sell at 1.3068 with the first target of 1.2988. It will also call for a downtrend in order to continue towards 1.2919 in coming hours. The strong daily support is seen at the 1.2919 level, which represents the double bottom on the H4 chart. According to the previous events, we expect the GBP/USD pair to trade between 1.3090 and 1.2919 in coming two days. The price area of 1.3131 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.3131 is not broken. On the contrary, in case a reversal takes place and the GBP/USD pair breaks through the resistance level of 1.3131, then a stop loss should be placed at 1.3196.

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Wave analysis of EUR/USD for July 2. Euro keeps good chances for growth

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Analysis of wave counting:

Following the result of the previous trading day, the EUR/USD pair added about 120 basis points. Thus, the trading instrument, presumably, went on to build a possible wave 3, in the c, in the 4 downward trend section. If this assumption is correct, the price increase will continue with the target located near the 1.1856 mark. A successful attempt to break a minimum of wave 2 will lead to the conclusion that the pair is ready to further reduce, and the entire wave 4 will take a shortened look. Thus, the minimum of wave 2, in c, in 4 now is the fulcrum for the correctional wave c.

Targets for selling:

1.1440 - 323.6% by Fibonacci of the highest order

1.1118 - 423.6% by Fibonacci

Targets for buying:

1.1866 - 100.0% by Fibonacci

1.2072 - 127.2% by Fibonacci

General conclusions and trading recommendations:

The wave counting of the EUR/USD pair is now expected to increase within the wave 3, in the c, at 4. Thus, I recommend to remain in buying or gradually build them up with targets located around 1.1856 and 1.2072. It is recommended to return to selling not earlier than the breakthrough of the minimum of June 28. In this case, the pair will move to the construction of the expected wave 5 of the downward trend section with targets located about 12 and 11 figures.

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GBP/USD. July 2. Trading system "Regression channels". All attention to the index of business activity in the manufacturing

4-hour timeframe

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Technical data:

Senior channel of linear regression: direction - down.

Youngest linear regression channel: direction – down.

Moving average (20; flattened) - sideways.

CCI: -5.5896

The GBP/USD currency pair adjusted on Friday to the moving average line, but it did not succeed to secure a foothold above it. UK GDP data did not support the English currency very much, as the report is hardly positive. But the US statistics on income and expenditure was a little disappointing. Nevertheless, despite a relatively strong upward movement in the pair over the last two trading days, the trend for the trading instrument remains downward, as evidenced by the two linear regression channels, still directed downward. Today we should pay attention to the index of business activity in the UK manufacturing sector for June. The British pound often reacts to this report, so it is not recommended to overlook it. The forecasts for the indicator predict a decline, which, in principle, is not surprising on the background of other falling macroeconomic indicators of Great Britain. A weak report can force traders to return to selling the English currency.

Nearest support levels:

S1 = 1.3062

S2 - 1.2939

S3 - 1.2817

Nearest resistance levels:

R1 = 1.3184

R2 = 1.3306

R3 = 1.3428

Trading recommendations:

For the GBP/USD pair, it is now recommended to consider new sell orders with a target of 1.3062. If the Heiken Ashi indicator turns down when the price is below the moving average, this will signal a resumption of the downward movement of the pair.

Longi is recommended to be considered only after confident overcoming by movers of the moving-house. In this case, traders can continue long positions with a target of 1.3306, but for this it would be nice to get a fundamental support.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations for illustrations:

Senior linear regression channel – blue line unidirectional movement.

Low channel of the linear– purple line unidirectional movement.

CCI - the blue line in the regression window of the indicator.

Moving average (20; smoothed) - the blue line on the price chart.

Murray levels - multicolored horizontal stripes.

Heiken Ashi is an indicator that color bars in blue or purple.

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Trading plan for the European session of GBP / USD pair on July 2

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

Buyers of the pound need to return to the resistance area of 1.3198, from which you can count on a new wave of growth in the area of resistance at 1.3243 and 1.3289, where fixing profits are recommended. In case of GBP / USD pair decline in the first half of the day, you can see the purchase after forming a false breakout in the support area of 1.3152 or open long positions on the rebound from 1.3102.

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

An unsuccessful attempt to consolidate at the resistance level of 1.3198 will be a good signal for opening short positions in the pound with the main goal of breakdown and consolidation below the support of 1.3152, which will lead to a larger sellout of GBP / USD and a minimum update around 1.3102, where fixing profits are recommended. In the case of growth above 1.3198, the pound can be sold at a rebound of 1.3243.

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Description of indicators

  • MA (average sliding) 50 days - yellow
  • MA (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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Trading plan for the European session of EUR / USD pair on July 2

To open long positions for EUR / USD pair, you need:

It is best returning to long positions in the euro after re-testing and fastening at the resistance level of 1.1662, which will lead to a new weekly maximum in the area of 1.1718, where fixing profits are recommended. A false breakdown and a return to the support level of 1.1615 will also be a good signal to euro purchases. Otherwise, you can buy on a rebound from 1.1571.

To open short positions for EUR / USD pair, you need:

The next generation of a false breakout and a return to the level of 1.1662 will be the first signal for euro sales with an aim of testing the support level of 1.1615. Consolidation below of which will lead to a larger sale of EUR / USD to the area of 1.1571. If the euro rises above 1.1662 in the first half of the day, you can sell for a rebound from the resistance of 1.1718.

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Description of indicators

  • MA (average sliding) 50 days - yellow
  • MA (average sliding) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
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AUD/USD analysis for July 02, 2018

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Recently, AUD/USD has been trading downwards. The price tested the level of 0.7366. According to the 30M time frame, I found a potential end of the bearish corrective phase (ABC flat), which is a sign that selling looks risky. My advice is to watch for a breakout of supply trendline to confirm further upward movement. The upward target is set at the price of 0.7415.

Resistance levels:

R1: 0.7410

R2: 0.7420

R3: 0.7425

Support levels:

S1: 0.7393

S2: 0.7387

S3: 0.7377

Trading recommendations for today: watch for potential buying opportunities.

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Analysis of GBP/USD Divergences as of July 2. Bear divergences on both charts

4h

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The GBP/USD pair on the 4-hour chart reversed in favor of the US dollar and began the process of falling towards the Fibo level of 200.0% - 1.3048, after the formation of a bearish divergence at the CCI indicator. Passing the last peak of the divergence will allow to expect the resumption of growth towards the corrective level of 161.8% - 1.3301. Fixing the pair above the Fibo level 161.8% will increase the probability of further growth in the direction of the next correction level of 127.2% - 1.3530.

The Fibo grid is built on extremes from March 1, 2018 and April 17, 2018.

1h

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On the hourly chart, the GBP/USD pair reversed in favor of the US currency, after rebounding from a correction level of 61.8% to 1.3212 and a bearish divergence in the CCI indicator. As a result, the quotes were consolidated under the Fibo level at 50.0% - 1.3182, and the decline could be continued in the direction of the following correction levels 38.2% - 1.3150 and 23.6% - 1.3111. There are no new brewing divergences in any indicator. The release of quotations from the Fibo level of 38.2% will allow to expect some growth.

The Fibo grid is built on the extremes of June 22, 2018 and June 28, 2018.

Recommendations for traders:

Buying of the GBP/USD pair can be opened with targets of 1.3182 and 1.3212 and the Stop Loss order under the correction level of 1.3150 if there is a retreat from the Fibo level of 38.2% (hourly chart).

Selling the GBP/USD pair is now possible with targets of 1.3150 and 1.3111 and a Stop Loss order above the correction level of 50.0%, as there was a retreat from the Fibo level of 61.8% from the bearish divergence, and a bearish divergence was formed on the 4-hour chart.

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Global macro overview for 02/07/2018

The June result of the German PMI Manufacturing index is the lowest since the end of 2016, according to Markit IHS. The index value of 55.9 points has not changed since the previous month and was in line with economists' expectations, in the first minutes after the data the DAX index grouping the largest companies is growing.

New orders in the industry show the slowest growth in two years and optimism among German entrepreneurs has fallen to the lowest levels in three years, producers of goods are looking at the upcoming year unconvincingly. The only positive aspect that flows from the Markit report is the pace of creating new jobs that have risen to four-month highs.

The PMI Manufacturing index is a gauge for the overall performance of the German manufacturing sector. Through asking executives about sales and employment outlook, the survey strives to provide useful information about the business climate that can lead to developments in employment, output, and consumption. The PMI survey results are the result of interviews with business executives. Manufacturing is an important sector in Germany, which is why changes in Manufacturing PMI can provide a good indicator of the overall economic condition in Germany as well as Eurozone.

Let's now take a look at the German DAX index technical picture at the H4 time frame. The market had opened with a gap down on Monday and fell to the level of support at 12,155. Currently, the bulls are trying to fill the gap and rally towards the level of 12,300, just above the old 61% Fibo retracement level was. If the bears will again take control over the market, then the next technical support is seen at the level of 12,000 (round number) and 11,958 ( April support). Please notice the big gap between the levels of 11,958 - 12,120 that might be filled soon as well.

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Analysis of Gold for July 02, 2018

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Recently, Gold has been trading downwards. The price tested the level of $1,245.50. According to the H1 time frame, I found a broken bearish flag pattern, which is a sign that sellers are in control. The trend is bearish and my advice is to watch for potential selling opportunities. The downward targets are set at the price of $1,236.00 and at the price of $1,228.00.

Resistance levels: R1: $1,255.50R2: $1,257.00R3: $1,258.50

Support levels: S1: $1,253.40S2: $1,251.80S3: $1,250.70

Trading recommendations for today: watch for potential selling opportunities.

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Merkel is one step away from the collapse of the government, Germany is a step away from early elections

Merkel is a step away from the collapse of the government, Germany is a step away from early elections.

Germany's Minister of the Interior, Horst Seehofer, the representative of the Merkel ally - the CSU party from Bavaria - in the German government - severely criticized the decisions of the EU summit on migrants.

As you remember, at the end of last week there was an EU summit on migrant refugees from North Africa. Despite tough disputes, primarily through Germany-Italy, the summit managed to agree on a solution: In Europe, "refugee reception zones" will be set up with the possibility of sending refugees back to Africa in part.

One of the reasons for the EU summit is the disagreement in the German government: the CSU party is firmly against receiving refugees to Germany.

And the Minister of the Interior threatens to block the entry of refugees - he is against the creation of "refugee reception zones" in Germany. And in case of his dismissal, the CSU party, most likely, will leave the coalition with Merkel.

Given that Merkel does not have a majority in the Bundestag - and ruled with the support of competitors - the Social Democrats - it is very likely that the government will fall and early elections.

The development of the plot will follow in the coming days.

This could sharply turn the euro down - after the emerging growth at the close of the week.

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The dollar has no reason to weaken

The week ahead looks rather positive for important macroeconomic and political events, which can significantly affect the foreign exchange market.

One of the most anticipated events is the launch of the new package of US protectionist measures against China's main trading partner. Markets are waiting for an attempt to find a compromise solution over the remaining days, but these expectations are hardly justified. As we have repeatedly shown before, the Trump administration in fact has no other opportunity to successfully carry out reforms, except for a strict protectionism policy and without the capital inflow from outside the government will quickly develop a bankruptcy situation.

From the point of view of the US financial markets, the trade war prevails. Capital, fearing escalation, is fleeing from developing countries and some of them are supporting falling US stock exchanges. While China is consistently devaluing the yuan, but even the weakening of the currency does not prevent the Shanghai Composite index from falling much faster than the S&P 500.

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The decline of the Shanghai Composite inevitably means a decrease in the Chinese PMI, given the strong correlation between these two indicators. The balance reduction rate of the Fed will reach 50 billion dollars by the end of the year, which will further weaken the emerging markets, and therefore, the tightening financial conditions meets the administration's plans.

On Thursday, the June minutes of the FOMC meeting will be published, which strengthened hawkish sentiments. It can be recalled that FOMC members raised their rate expectations of up to four increases this year and predicted for a rate hike above the neutral level for the next year, and also raised the forecast for inflation.

The final scenario showed an increased in interest. The Committee, in any case, continues to adhere with the "Phillips curve" and expects inflation to grow because of the increase in the average wage. If the market supported these calculations, it would also react with the rising expectations on inflation, but in the recent months, inflation has slowed down as shown on Friday by the Director of the US National Economic Council, Larry Kudlow. According to Kudlow, the policy of the Trump administration does not lead to an increase in inflation, and he hopes for a slower growth in the rates of the Fed.

If you focus on the yield of 5-year bonds TIPS, which are the most accurate tool for forecasting inflation in terms of business, showed a positive dynamics and there are no reasons for concern.

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Non-farms payroll for June can significantly strengthen the dollar's position. At the moment, the forecasts are neutral and it is assumed that 190 thousand jobs were created in June, while the duration of the average working week, unemployment and wages forecasts will be at the level of May indicators. Any deviation of data from expectations will not cause reappraisal of the FRS' plans, but it will be able to extinguish inflation skepticism, which in itself will be a powerful stimulating factor.

The main idea of July is the preparation for a new recession. The yield spread between 2-year and 10-year bonds is shrinking, and one should expect that after two planned increases in rates, the yield curve is inverted by the end of the year. The supply reduction of money will lead to maintaining the growth of resource bubbles, and there will be no more supplies, thus, the recession will officially announce itself.

On Monday morning, all concerns aforementioned look exaggerated. The CFTC's Friday report showed an increase in demand for the dollar, while the cumulative short position on oil is declining, and the speculative position on gold is also shrinking. While the demand for the yen has decreased again, and all outwardly indicates that the favorite is the dollar, and not the defensive assets. At the same time, it is obvious that this situation will not last for a long time, and if the trade war gets a new round of escalation on July 6, it will be the defensive assets that will come to the fore.

Most likely, the EUR/USD pair will spend the day in the sideways range under the pressure of support 1.1610, while the GBP/USD pair will attempt to move up to 1.3250 which mean an attempt to break the bearish trend.

* The presented market analysis is informative and does not constitute a guide to the transaction.

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Bitcoin analysis for July 02, 2018

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Trading recommendations:

Recently, Bitocin has been trading upwards. As I expected, the price tested the level of $6.468 and met my first objective target. Anyway, according to the H1 time - frame, I found an intraday bullish flag in creation, which is a sign that buying may resume. My advice is to watch for a breakout of the bullish flag to confirm further upward continuation. The upward target is set at the price of $6.675.

$6.468 – Intraday resistance; $6.220 – Intraday support; $6.675 – Objective target

With InstaForex, you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4. *The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Global macro overview for 02/07/2018

According to a survey conducted every quarter within the CFO of the companies, a record 75% of large British companies are pessimistic regarding the Brexit issue. In April it was 68%. The companies expect to reduce investment expenditures and lower sales revenues.

The Deloitte survey shows that currently many companies use a defensive financial strategy, their percentage is the highest since 2012. Corporations are unconvinced about the exact schedule of negotiations and the final agreement on the exit from the EU. The optimism resulting from the alleged achievement of a favorable outcome of negotiations was only temporary, there is no trace of it. Only 17% of large companies expect to achieve higher revenues in the next 12 months.

The situation is not improved by the attitude of the British government. Oliver Robbins - the main negotiator on the Brexit case - told the ministers that there is no chance of achieving a favorable outcome of the negotiations on trade agreements with the European Union. The EU did not have the slightest desire to soften its tough approach to negotiations.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The pair at the beginning of the week is growing despite negative information, but the technical resistance zone between the levels of 1.3191 - 1.3217 was too strong for bulls to break through. The momentum, however, remains bullish and the market conditions are indicating a possibility of another rally towards the resistance. The nearest technical support is seen at the level of 1.3100.

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Trading plan 07/02/2018

Trading plan 07/02/2018

The general picture: Trump, trade wars and the crisis in Germany.

Two main topics for the market right now. The first is Trump's trade war. China's retaliatory tariffs against goods from the United States - agricultural products and cars - entered into force, with the amount of 34 billion dollars. Trump at that time introduces duties against the import of cars from the EU.The Trump administration official talk about the negotiations on duties - but so far there are no signals about the truce - the war continues.

In the government of Merkel - there is a threat of a split in the coalition because of the issue of migrants. The decisions of the EU summit on migrants have been criticized by the Merkel allies (CSU party, Bavaria) as clearly insufficient. The crisis can lead to the collapse of the coalition and early elections.

GBPUSD: Buy from 1.3220

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Fractal analysis for major currency pairs as of July 2

Dear colleagues.

For the of EUR / USD pair, the price issued a pronounced structure for the top of June 28. For the GBP / USD pair, the price also forms a structure for the top of June 28. For the USD / CHF pair, we follow the downward structure of June 28. For the USD / JPY pair, we follow the upward structure of June 26. The development of this level is expected after the breakdown of 111.10. For the EUR / JPY, we follow the formation of the upward structure of June 28. For the GBP / JPY pair, the price forms an upward structure from June 28. The development of this level is expected after the breakdown of 146.70.

The forecast for July 2:

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: 1.1807, 1.1771, 1.1718, 1.1684, 1.1633, 1.1610 and 1.1578. Here, the price has issued an upward structure from June 28 for the development of a subsequent trend. The continuation of the movement towards the top is expected after the breakdown of 1.1684. In this case, the target is 1.1718. Near this level is the consolidation of the price. The breakdown at the level of 1.1718 should be accompanied by a pronounced upward movement. The target here is 1.1771. For the potential value for the top, consider the level of 1.1807. After reaching this level, we expect a rollback to the bottom.

Short-term downward movement is possible in the area of 1.1633-1.1610. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.1578. This level is the key support for the upward structure.

The main trend is the initial conditions for the top of June 28.

Trading recommendations:

Buy: 1.1684 Take profit: 1.1715

Buy 1.1722 Take profit: 1.1770

Sell: 1.1631 Take profit: 1.1611

Sell: 1.1608 Take profit: 1.1580

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For the GBP / USD pair, the key levels on the scale of H1 are 1.3306, 1.3274, 1.3225, 1.3198, 1.3165, 1.3141 and 1.3099. Here, the price forms an upward structure from June 28. Short-term traffic to the top is expected in the area of 1.3198 - 1.3225. The breakdown of the last value should be accompanied by a pronounced movement towards the level of 1.3274. For the potential value for the top, consider the level of 1.3306. Upon reaching this level, we expect a pullback to the bottom.

Short-term downward movement is possible in the area of 1.3165 - 1.3141. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3100. This level is the key support for the upward structure.

The main trend is the formation of the upward structure of June 28.

Trading recommendations:

Buy: 1.3198 Take profit: 1.3223

Buy: 1.3227 Take profit: 1.3272

Sell: 1.3165 Take profit: 1.3143

Sell: 1.3138 Take profit: 1.3105

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For the USD / CHF pair, the key levels in the scale of H1 are: 0.9954, 0.9936, 0.9923, 0.9902, 0.9888, 0.9861, 0.9842 and 0.9816. Here, we follow the formation of the downward structure from June 28. The continuation to the bottom is expected after passing by the price of the noise range at 0.9902 - 0.9888. In this case, the target is 0.9861. In the area of 0.9861 - 0.9842 is the consolidation of the price. For the potential value for the bottom, consider the level of 0.9816. Upon reaching this level, we expect a pullback to the top.

Short-term uptrend is possible in the area of 0.9923 - 0.9936. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.9954. This level is the key support for the downward structure.

The main trend is the formation of a downward structure from June 28.

Trading recommendations:

Buy: 0.9923 Take profit: 0.9934

Buy: 0.9938 Take profit: 0.9952

Sell: 0.9888 Take profit: 0.9863

Sell: 0.9858 Take profit: 0.9845

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For the USD / JPY pair, the key levels on a scale are: 112.00, 111.58, 111.39, 111.09, 110.74, 110.52 and 110.25. Here, the continuation of the upward cycle from June 26 is expected after the breakdown of 111.10. In this case, the target is 111.39. In the area of 111.39 - 111.58 is the consolidation of the price. For the potential value for the top, consider the level of 112.00, After reaching this level, we expect a pullback to the bottom.

Short-term downward movement is possible in the area of 110.74 - 110.52. The breakdown of the last value will lead to in-depth correction. Here, the target is 110.25. This level is the key support for the top.

The main trend is the upward structure of June 26.

Trading recommendations:

Buy: 111.10 Take profit: 111.36

Buy: 111.60 Take profit: 112.00

Sell: 110.73 Take profit: 110.52

Sell: 110.50 Take profit: 110.25

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For the CAD / USD pair, the key levels on the H1 scale are: 1.3286, 1.3233, 1.3193, 1.3131, 1.3071, 1.2938 and 1.2872. Here, we follow the formation of a downward structure from June 27. Short-term downward movement is expected in the range of 1.3131 - 1.3071. The breakdown of the last value will lead to the development of a pronounced movement towards the bottom. Here, the target is 1.2938. For the potential value for the bottom, consider the level of 1.2872. From this level, we expect a pullback to the top.

Short-term uptrend is possible in the area of 1.3193 - 1.3233. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.3286. This level is the key support for the bottom.

The main trend is the formation of a downward structure from June 27.

Trading recommendations:

Buy: 1.3193 Take profit: 1.3231

Buy: 1.3235 Take profit: 1.3285

Sell: 1.3130 Take profit: 1.3073

Sell: 1.3068 Take profit: 1.2940

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For the AUD / USD pair, the key levels on the scale of H1 are: 0.7569, 0.7512, 0.7440, 0.7400, 0.7322, 0.7262 and 0.7216. Here, we continue to follow the downward cycle from June 6. The continuation of the movement towards the bottom is expected after the breakdown of the level of 0.7322. Here, the target is 0.7262. In the area of 0.7262 - 0.7216 is the consolidation of the price and from here, we expect a key turn to the top.

Consolidated movement is possible in the area of 0.7400 - 0.7440. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.7512. For the initial conditions for the upward cycle, we expect to reach 0.7569.

The main trend is the downward cycle from June 6, the correction stage.

Trading recommendations:

Buy: 0.7442 Take profit: 0.7510

Buy: 0.7514 Take profit: 0.7566

Sell: 0.7320 Take profit: 0.7264

Sell: 0.7260 Take profit: 0.7218

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For the of EUR / JPY pair, the key levels on the scale of H1 are: 132.02, 131.20, 130.64, 129.90, 128.80, 128.34, 127.74 and 127.06. Here, the price has issued a pronounced structure for the upward movement of June 28. The continuation of traffic to the top is expected after the breakdown of 129.90. In this case, the target is 130.64. In the area of 130.64 - 131.20, we expect short-term upward movement, as well as the consolidation of the price. For the potential value for the top, consider the level of 132.02. Upon reaching this level, we expect a pullback to the bottom.

Short-term downward movement is possible in the area of 128.80 - 128.34. The breakdown of the last value will lead to in-depth correction. Here, the target is 127.74. This level is the key support for the upward structure of June 28.

The main trend is the upward structure of June 28.

Trading recommendations:

Buy: 129.90 Take profit: 130.60

Buy: 130.66 Take profit: 131.20

Sell: 128.80 Take profit: 128.38

Sell: 128.30 Take profit: 127.80

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For the GBP / JPY pair, the key levels on the scale of H1 are: 148.80, 148.10, 147.48, 146.67, 145.62, 145.11 and 144.52. Here, the price forms an upward structure from June 28. The continuation of the movement towards the top is expected after the breakdown of 146.67. In this case, the target is 147.48. In the area of 147.48 - 148.10 is the consolidation of the price. For the potential value for the top, consider the level of 148.89. After reaching this level, we expect a rollback to the bottom.

Short-term downward movement is possible in the area of 145.62 - 145.11. The breakdown of the last value will lead to in-depth correction. Here, the target is 144.52. This level is the key support for the upward structure of June 28.

The main trend is the formation of the upward structure of June 28.

Trading recommendations:

Buy: 146.68 Take profit: 147.45

Buy: 147.50 Take profit: 148.10

Sell: 145.60 Take profit: 145.14

Sell: 145.10 Take profit: 144.55

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

The daily review of GBP / JPY on July 2, 2018. Ichimoku indicator

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GBP / JPY

Toward the end of the week and month, players on the increase showed activity and reached important milestones. In the near future, the most significant zone of resistance is the area of 146.21-57-94 (daytime Fibo Kijun + week Tenkan + month Fibo Kijun). Reliable overcoming eliminates the day-long dead cross and provides a one-week short-term advantage to players on the increase, adding to the support of the monthly level. As for the bears, with the onset of July, the technical picture changed slightly. The main task of the players for the fall remains the same - the breakdown of the weekly cloud and the formation of the downside target. But the monthly Kijun (142.70) in July does not unite more of its efforts with the week-old Senkou Span B (144.60), which undoubtedly weakens each of these levels separately.

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The lower time intervals now confirm the achievement of a zone of important resistance. The boosting target for the breakdown of the H1 cloud was worked out, while the pair rested on the upper boundary of the H4 cloud. Overcoming resistance opens new perspectives and creates new targets. Major support today retained their location - 145.64 - 145.18 - 144.60 - 143.74 - 143.17. At the same time, the trend is currently relevant: the less deep the decline, the faster the players' plans for the increase can be developed.

Indicator parameters:

All time intervals 9 - 26 - 52

The color of indicator lines:

Tenkan (short-term trend) - red,

Kijun (medium-term trend) - green,

Fibo Kijun is a green dotted line,

Chinkou is gray,

Clouds: Senkou Span B (SSB, long-term trend) - blue,

Senkou Span A (SSA) - pink.

The color of additional lines:

Support and resistance MN - blue, W1 - green, D1 - red, H4 - pink, H1 - gray,

Horizontal levels (not Ichimoku) - brown,

Trend lines - purple.

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

The euro used growth potential

EUR / USD

Last Friday, the euro rose by 118 points against the backdrop of apparent optimism in the political sphere of Europe, where an agreement on migration policy was reached. This factor, as we noted earlier, in this case, is not some significant event in politics, only the old order of things has been preserved. On that day, the euro acted as the slave currency, growing after the British pound, which, in turn, had stronger reasons for growth - GDP growth for the first quarter was 0.2% against expectations of 0.1%. The core CPI of the euro area for June fell from 1.1% y / y to 1.0% y / y, the total CPI increased from 1.9% y / y to 2.0% y / y. In the US, personal income of consumers in May increased the expected 0.4%, expenses increased by 0.2% against the forecast of 0.4%. The index of business activity in the manufacturing sector of the Chicago region for the past month increased from 62.7 to 64.1, while waiting for a fall to 60.1. Consumer confidence declined slightly from 99.3 to 98.2. The stock market (S & P500) added 0.08%.

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Technically, the price still worked out the upper limit of the falling channel and is now preparing to decrease. While we see only the first sign of this decline - the price returned under the red balance sheet. The balance, thus, has shifted to a decline, but the price is to overcome the more important support for the blue Kruzenshtern trend line (1.1615) to continue the path to supporting the trend line with the target of 1.1510. We are also waiting for the transition of the signal line of the Marlin oscillator to the reduction zone.

Outgoing PMI Manufacturing PMI in the final estimate for June is expected without a change of 55.0 points. The unemployment rate for May is also projected without a change of 8.5%.

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

Bitcoin analysis for 02/07/2018

According to a report by the PwC consulting company and the Swiss Crypto Valley association, the initial coins offer (ICO) is thriving despite the decline in cryptocurrency prices. PwC found that the ICO volume reached a new record in the first half of 2018.

According to the report, from January to May 2018, the ICO volume is already two times higher than in 2017. PwC Switzerland writes in the attached press release: "in total, 537 ICOs with a total value of over USD 13.7 billion have been registered since the beginning of the year. For comparison, in 2017, 552 ICOs were created with a value of just over USD 7 billion. The size of ICO has nearly doubled since last year. Particularly noteworthy are the ICO Telegram and EOS, which have reached billions. The telegram collected $ 1.7 billion via ICO, while EOS collected over twice as much, or $ 4.1 billion".

According to the ICO report, the United States, Singapore and Switzerland are currently the three most important ICO centers in the world, largely due to progress in regulation. Especially Switzerland benefits from the Zug Crypto Valley, focusing on startups based on Blockchain and fintech. Smaller countries and cities, such as Hong Kong, Gibraltar, Malta and Liechtenstein, have had some success after copying the friendly models of Singapore and Switzerland.

Regarding the regulation, the authors identified three different approaches that are currently implemented worldwide:

The United States uses a centralized system in which all tokens offered by ICO are sold as securities, while in Europe predominantly different regulations, for example, FINMA classifies tokens into three sub-types: assets, payments and usability of tokens that are not a real investment, but allow the buyer has direct access to the ICO product or service, and in Asia the regulation is very heterogeneous, ranging from a strict ban to the active promotion of ICO projects.

Traditional financial institutions remain skeptical about the ICO and criticize the lack of supervision in some jurisdictions. Nasdaq CEO, Adena Friedman, has recently stated that ICOs pose a "serious risk" to retail investors due to regulatory shortcomings. Earlier this month, SEC chairman Jay Clayton repeated the agency's view that ICOs are securities and should be regulated as such.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The Double Bottom technical pattern might have been made at the level of $5,742 and now the market should be in the counter-trend corrective upward cycle. The key intraday technical resistance is seen at the level of $6,519 and the key resistance for the bears is seen at the level of $6,809. Until those two levels are clearly violated, the downtrend will continue.

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

EUR / USD. July 2. Inflation in the euro area supported the European currency.

4-hour timeframe

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Amplitude of the last 5 days (high-low): 84p - 86p - 131p - 74p - 133p.

The average amplitude for the last 5 days is 102p (90p).

Optimism swept traders on Friday, June 29. Inflation in Europe for the first time in a long time exceeded the forecasts of experts and amounted to "whole" 2.0% with a forecast of 1.9%. Traders, against the backdrop of European purchases that started at night, responded with new longs, which allowed the euro to gain a little more. At the same time, the basic consumer price index, which does not take into account, for example, the change in energy prices, showed much more modest growth dynamics, only 1.0% y / y. We believe that this indicator is of greater importance since the rise in oil prices often also causes a rise in prices for all goods in the production of which oil is used. Therefore, it is unlikely that traders will remain optimistic for a long period of time. At the same time, the personal expenses of the American population slightly disappointed traders, as its growth was only 0.2% in May, against the forecast of 0.4% and the April value of 0.6%. This means that Americans have a stronger propensity to save, which is unlikely to please the Fed. However, against the backdrop of the trade war that the US continues to unleash on all fronts, this inclination of citizens is well founded. Uncertainty, which is linked to the future of the US economy, in the light of trade duties on a number of goods, makes Americans look with caution in the near future. Moreover, all countries against which Trump introduces trade restrictions, try to respond "in tone." Most of all, of course, China, which, though dependent on the export of goods to the US, still has a lot of other markets. And not to strike back at the States would be a manifestation of weakness. Question: what methods will the PRC want to answer? There are a lot of options, from the introduction of reciprocal trade restrictions to the sales of US government bonds, which China actively bought in recent years, which could lead to a collapse in the American stock market.

Trading recommendations:

For the pair EUR / USD, it is recommended to consider long positions with a target of 1,1722 if the MACD indicator on the current bar does NOT turn down. This will mean that the initiative remains in the hands of the bulls.

Sell-positions are recommended to be opened if MACD will turn down, and bears will be able to gain a foothold below the critical line. In this case, bears can resume the formation of a downtrend with the first targets of 1.1588 and 1.1568.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Redline and histogram with white bars in the indicator window.

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

Control zones of GBP / USD as of July 2, 2018

The Friday motion allowed the pair to reach the NCP 1/2 1.3206-1.3192, the test of which will determine the further priority. If the instrument continues to bargain below this zone, the target of the fall will be a one-week fault at 1.3005-1.2977.

Today's test of NCP 1/2 1.3206-1.3192 allowed to get favorable prices for the sale of the instrument. The purpose of the fall is a weekly short-term target of 1.3005-1.2977, which allows you to determine the size of the take profit, which is 180p. This suggests that the range of stop-loss should not exceed 60 points. Then this transaction will be profitable over a long distance.

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When building a trading plan, it is necessary to take into account the fact that the movement of Friday was impulsive, as the pair overcame the average daily turn and was able to gain a foothold higher. Closure of today's US session above the level of 1.3206 will cancel the top-down priority and the sale may be closed, even if the stop loss is not working yet. This model will allow you to search for purchases the next day, which will require the restructuring of the trading plan.

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The daily short-term fault is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.

The weekly short-term fault is the weekly control zone. The zone formed by important futures market marks, which change several times a year.

The monthly short-term fault is the monthly control zone. The zone, which is a reflection of the average volatility over the past year.

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

The football character of the yen

USD / JPY

On Friday, Japan showed such optimistic economic indicators for labor and inflation that today's weakness of Manufacturing PMI and Tankan indices was overcome.

The unemployment rate in May fell from 2.5% to 2.2%, which corresponds to April 1978 (40-year minimum!). The basic CPI in metropolitan Tokyo increased from 0.5% y / y to 0.7% y / y, with the expectation of a smaller increase to 0.6% y / y. The total CPI of Tokyo increased from 0.4% y / y to 0.6% y / y. Industrial production for May lost 0.2%, but the forecast was -1.1% and the previous growth was stronger: 0.5%. On Friday, the yen added 22 points.

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Today, growth continued. On the daily chart, the price overcame the resistance of the upper boundary of the downward trend channel and now the goal is to resist the growing price channel in the 112.05 area. The intermediate goal of 111.64 is at least October 16, 2017. A forward target is the upper boundary of the channel 113.26.

We note that the price is steadily growing above the balance line (red) and Marlin in the zone of positive values.

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

GBP/USD. July 2. GDP in the UK for the first quarter completed a series of unsuccessful macroeconomic reports.

4-hour timeframe

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Amplitude of the last 5 days (high-low): 69p - 100p - 127p - 73p - 145p.

The average amplitude for the last 5 days is 103p (89p).

The British pound sterling followed the Euro-currency price on the last trading day of the week. The growth began at night, but continued at the American trading session. At the time of the release of British GDP for the first quarter, the British currency already increased in value. Although the indicator itself did not please traders, there was no recession. The GDP was 1.2% in annual terms, which fully met the market expectations. In quarterly terms, the growth was 0.2%, which is slightly higher than the forecast. However, this, to put it mildly, is not a reason for joy for buyers of the British pound. At the American trading session, the indicator of personal spending of the US population has already disappointed buyers of the dollar, which once again strengthened the pound.. However, at the moment all this upward movement of the pair looks like another, rather deep correction. In this regard, today's day is of great importance. If the selling of the English currency resume today, this will confirm our assumptions about the technical and corrective nature of the pair's move up in recent days. Otherwise, it will be possible to start talking about the rise of the uptrend, but, as we have repeatedly noted, there are practically no compelling reasons for the growth of the British currency. Those saving the pound sterling from new selling are countries that will impose severe sanctions against the States in response to trade duties, with which Trump is scattered left and right. For example, China. If the financial markets feel that there is an opposing force against Washington that can inflict an equally strong blow to the competitor's economy, then the belief in the dollar will begin to decline, which may become the beginning of the fall of the US currency in the medium term.

Trading recommendations:

The GBP/USD currency pair was fixed above the Kijun-sen line. Thus, as long as the price remains above this line, longs are used for small lots with a target of 1.3248.

It is recommended to open sell orders if the price is fixed below the Kijun-sen line, which is likely to mean a resumption of the downtrend with a target of 1.3114, which takes into account the average volatility of the instrument.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

Red line and histogram with white bars in the indicator window.

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

Trading plan for 02/07/2018

Trading on financial market is unfolding in the background of declines on the Chinese stock exchange, where investors are debating how worries about commercial wars affect the sentiment in business. The political risk from Germany weighs on the EUR, and Trump's activity on Twitter weakens oil.

Over the weekend, the global investors have received PMI indices from China, which remain in the expansion area, although indicators for the industry are weakening. PMI for services in June increased to 55 from 54.9, and for the industry, it dropped to 51.5 from 51.9. Today, the private Caixin PMI for the industry pointed to a slight decrease to 51 from 51.1. The Shanghai Composite stock market, it loses 1.7%, dictating the sentiment for other markets. Japanese Nikkei 225 is 2.2% lower.

Crude oil starts the week with a slump of 1%. after a week-long comment by President Trump on Twitter, he talked to the King of Saudi Arabia about an increase in production by 2 million bp. The White House and the Saudi press agency issued statements that the parties are discussing what to do with mining losses, but no decisions have yet been made. WTI is trying to bounce back to $73 this morning.

On Monday 2nd of July, the event calendar is light in important data releases, but the global investors should pay attention to PMI Manufacturing data releases from the whole Eurozone and later on, to the ISM Manufacturing data from the US.

EUR/USD analysis for 02/07/2018:

EUR is under pressure from events on the German political scene. CSU leader Horst Seehofer resigned from the position of the head of the Ministry of Interior and leadership in the party, which is the result of an immigration dispute in the government. According to Seehofer, the findings at last week's EU summit are unsatisfactory, as they will not reduce immigration to Germany. The risk of the coalition breaking up is rising, which is not a good news for the EUR.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. EUR/USD has been falling since the beginning of the trading week, from 1.1675 to 1.1630. The 50% Fibo at the level was too strong level for the bulls so far and the price is starting to fall again. The market conditions are slightly overbought at this time frame, so the bearish bias is being supported. The key support zone is seen at the level of 1.1509 - 1.1542.

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

Fractal analysis of GOLD on July 2

The forecast for July 2:

Analytical review on the scale of H1:analytics5b399b6566f3c.png

For Gold, the key levels on the H1 scale are: 1267.90, 1262.60, 1255.53, 1250.07, 1242.59, 1229.45 and 1222.85. Here, we follow the downward cycle from June 14. Continued movement to the bottom, we expect after the breakdown of the level of 1242.59, in this case, the target is 1229.45. The potential value for the downward movement is the level of 1222.85, upon reaching which, we expect consolidated movement in the corridor 1229.45 - 1222.85, as well as a pullback to the top.

Short-term upward movement, possibly in the corridor 1250.07 - 1255.53, breakdown of the last value will lead to an in-depth correction, here the target is 1262.60. Range 1262.60 - 1267.90 noise, before it we expect the initial conditions for the top.

The main trend is the descending structure of June 14.

Trading recommendations:

Buy: 1250.10 Take profit: 1255.30

Buy: 1255.80 Take profit: 1262.30

Sell: 1242.00 Take profit: 1230.00

Sell: 1229.20 Take profit: 1223.00

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

Breathe in front of the dive

GBP/USD

On Friday, the pound added 131 points on the release of good economic performance. UK GDP in the final assessment for the 1st quarter was 0.2% vs. 0.1% in the previous estimate and the forecast was unchanged. The balance of payments for the same period improved from -19.5 billion pounds (revised from -18.4 billion) to -17.7 billion pounds. The forecast was -18.0 billion pounds. The number of issued permits for mortgage lending increased from 63, 000 in May, and the revised ones from 62, 000 to 65, 000, while 62, 000 were expected. The net volume of new loans granted to individuals declined slightly (from 5.6 billion pounds to 5.3 billion pounds), but the forecast assumed an even greater decline to 5.2 billion pounds.

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Technically, the price is still below the carrying price. A sign of its overcoming is the increasing signal line of the Marlin oscillator since may and its transition to the zone of positive values. But the stretch of the process also warns of the trend's exhaustion. With a slight decrease in the price, this line can again return to the negative territory.

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On the four-hour chart, the price was also withheld by the balance sheet. Bala crossed the Krusenstern line , but in the current context, this output can be interpreted as false. Also, the Marlin indicator line can easily return to the drop zone.

The price index may be pushed up by today's PMI (manufacturing PMI) index - the forecast for June is 54.1 versus 54.4 in May. But the main concern of investors is the extremely exacerbated problem of Brexit. At last week's EU summit it was decided that if Britain drags out decisions on contentious issues, the country may remain without a trade deal. Today new negotiations begin.

We are waiting for the price to support the trend line in the area of 1.3076.

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

Fundamental Analysis of USD/JPY for July 2, 2018

USD/JPY has been quite slow with the bullish gains recently which lead the price to reside above the 110.50 area which is expected to push higher towards the 112.00 area in the future. Though USD has been quite strong after the recent rate hike and better economic reports, JPY has not been totally dominated in the process.

As of the recent Trade War and US President Donald Trump expecting another tax overhaul in October this year, the volatility in the USD based pairs are expected to be quite high in the coming days. Though USD has been quite strong with the recent momentum, but it failed to have impulsive effect over JPY. Today, JPY Tankan Manufacturing Index report was published with a decrease to 21 from the previous figure of 24 which was expected to be at 22, Tankan Non-Manufacturing Index showed an increase to 24 which was expected to be unchanged at 23 and Final Manufacturing PMI report showed a slight decrease to 53.0 which was expected to remain unchanged at 53.1.

On the other hand, ahead of the NFP, Average Hourly Earnings and Unemployment Rate reports to be published on Friday this week, USD is expected to maintain the bullish momentum by the end of the week. Though certain correction and weakness may occur due to dovish expectation for certain USD reports, but the market bias is currently on the USD side. Today, USD Final Manufacturing PMI report is going to be published which is expected to be unchanged at 54.6, ISM Manufacturing PMI is expected to decrease to 58.2 from the previous figure of 58.7, Construction Spending is expected to decrease to 0.5% from the previous value of 1.8% and ISM Manufacturing Prices is also expected to decrease to 74.3 from the previous figure of 79.5.

As of the current scenario, JPY is expected to gain certain momentum over USD in the short-term, but the overall market bias is still on the USD side. As it exists, USD is expected to gain further momentum over JPY, but with certain corrections following the pressure in the coming days.

Now let us look at the technical view. The price has rejected the bullish pressure it had today after the recent break above the 110.50 area which is expected to inject certain bearish bias in the market for the short or medium term. The price is residing above the dynamic levels of 20 EMA, Tenkan and Kijun line which are expected to keep the price pushing higher with target towards 112.00 in the future. As the price remains above the 108.50-109.20 area with a daily close, the bullish bias is expected to continue.

OVERALL MARKET BIAS : BULLISH

SUPPORT AREA : 108.50 to 109.20

RESISTANCE AREA : 112.00

POSSIBLE UPCOMING MOMENTUM : CERTAIN BEARISH PRESSURE BEFORE PUSHING HIGHER TOWARDS THE 112.00 AREA.

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

Fundamental Analysis of EUR/USD for July 2, 2018

EUR/USD has been quite impulsive with the bullish gains recently after bouncing off the 1.1550 area with a daily close, but currently, certain bearish pressure is trying to push it lower again. Due to the recent Trade War situation, certain volatility and correction are quite in line with expectations, but a break below 1.1550 will lead to certainty for the upcoming bearish momentum in the pair.

Today, EUR slipped back of its impulsive bullish pressure as German Chancellor Angela Merkel was dealt a fresh blow when her interior minister offered to quit in an escalating row over migration policy. Moreover, today a series of economic reports are yet to be published including Italian Manufacturing PMI report which is expected to decrease slightly to 52.6 from the previous figure of 52.7, French Final Manufacturing PMI is expected to be unchanged at 53.1, German Final Manufacturing PMI is also expected to be unchanged at 55.9 as well as EUR Final Manufacturing PMI report is expected to remain unchanged at 55.0. Additionally, EUR Unemployment Rate is expected to be unchanged at 8.5%, but PPI report is expected to increase to 0.4% from the previous value of 0.0%.

On the USD side, ahead of the NFP report this week which is expected to be quite dovish with the result, today USD Final Manufacturing PMI report is going to be published which is expected to be unchanged at 54.6, ISM Manufacturing PMI is expected to decrease to 58.2 from the previous figure of 58.7, Construction Spending is expected to decrease to 0.5% from the previous value of 1.8% and ISM Manufacturing Prices is also expected to decrease to 74.3 from the previous figure of 79.5.

As of the current scenario, both EUR and USD are quite indecisive with the upcoming economic reports which lead to further confusion in the market. Though USD is expected to have an upper hand over EUR as of the recent Rate Hike and upcoming policies promising development, whereas EUR failed to provide such assurance to the market participants. To sum up, the USD pressure is expected to continue further.

Now let us look at the technical view. The price is currently residing at the edge of dynamic level of 20 EMA below the resistance area of 1.1700-50, which is expected to push the price again towards the 1.1550 area in the coming days. Later, if the price breaks below 1.1550 with a daily close, the upcoming target would be the 1.13 support area. As the price remains below 1.1750 with a daily close, the bearish bias is expected to continue.

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

Technical analysis of USDX for July 02, 2018

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USD Index at Daily Charts seems meeting its strong Resistance level at 95.05, and this level looks like a good barrier for the USDX to continue going up, in a few days ahead there is a possibility the USDX will go down to test 94.67 as its first target and the 93.19 as its secondary target as long as the USDX does not break out and closes above 95.53.

(Disclaimer)

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

Technical analysis of CAD/JPY for July 02, 2018

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Looking at the Daily Charts, we know the CAD/JPY pair still moving in a Bearish bias, for now this pair will get a few corrections as long as they not break out and close above the 85.71 this pair will continue its down trend to test the nearest Support at 82.14 in a few days ahead.

(Disclaimer)

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

Technical analysis: Intraday Level For EUR/USD, July 02, 2018

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When the European market opens, some Economic Data will be released, such as Unemployment Rate, PPI m/m, Italian Monthly Unemployment Rate, Final Manufacturing PMI, German Final Manufacturing PMI, French Final Manufacturing PMI, Italian Manufacturing PMI, and Spanish Manufacturing PMI. The US will release the Economic Data too, such as 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: 1.1735.

Strong Resistance:1.1728.

Original Resistance: 1.1717.

Inner Sell Area: 1.1706.

Target Inner Area: 1.1678.

Inner Buy Area: 1.1650.

Original Support: 1.1639.

Strong Support: 1.1628.

Breakout SELL Level: 1.1621.

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

Technical analysis: Intraday level for USD/JPY, July 02, 2018

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In Asia, Japan will release the Final Manufacturing PMI, Tankan Non-Manufacturing Index, and Tankan Manufacturing Index, and the US will release some Economic Data, such as 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 a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Resistance. 3: 111.52.

Resistance. 2: 111.30.

Resistance. 1: 111.08.

Support. 1: 110.82.

Support. 2: 110.60.

Support. 3: 110.38.

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

USD/CHF Bounced Off Support, Prepare For Further Rise

USD/CHF has bounced off its support at 0.9900 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support) where we expect the price to rise to its resistance at 0.9985 (horizontal swing high resistance).

Stochastic (55, 5, 3) is approaching its support at 1.34% where a corresponding rise is expected.

Buy above 0.9900. Stop loss at 0.9854. Take profit at 0.9985.

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

EUR/USD Approaching Resistance, Prepare For A Reversal

EUR/USD is approaching its resistance at 1.1733 (100% & 61.8% Fibonacci extension, 61.8% & 76.4% Fibonacci retracement, horizontal overlap resistance) where we expect to see a reversal, causing the price to fall to its support at 1.1518 (horizontal swing low support).

Stochastic (55, 5, 3) has reversed off its resistance at 96% where a corresponding drop is expected.

Sell below 1.1733. Stop loss 1.1660. Take profit at 1.1518.

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.#forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom #daytrader #scalper #swingtrader #fx #currency #pips #technicalanalysis #forexmarket

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