Trading signals

USD/JPY
The yen met strong resistance at the level of JPY111.30 and moved to consolidation.

• The US corporate reporting season start creates demand for stock assets; 
• President Trump's tax reform could not significantly support the US dollar;
• The US dollar index moves to consolidation - the dollar stopped weakening and forms a consolidation pattern.

Technical analysis and recommendations: Longs amid pullback from 111.30.
The former resistance is now the nearest support at 110.55. We expect that the level of 111.30 will not be passed immediately and most likely, the market will make few attempts with some technical pullbacks.

EUR/USD
The market consolidates at the levels of 1.0831-1.0915.

• The reduced political risks in Europe will support the European currency in the short term.
• The upward impulse met strong resistance and further growth seems limited.

Technical analysis and recommendations: Accurate longs from the level of 1.0830 - the zone of the nearest demand, and the first strongest level of resistance.

Brent Oil
Weakness of the oil market continues. Market dropped below the level of 52 dollars per barrel.

• The current decline may not be justified from a fundamental point of view;
• OPEC plans to extend the agreement on production cuts for the second half of the year is in the market's focus.

Technical analysis and recommendations: Longs at current levels seem justified.
In the region of the level of 51.10-51.30 is a long-term level of support. Longs from this level may be of interest for medium-term positions. We expect a rollback to $53 next week.

Fort Financial Services
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.