Thursday, 22 June 2017

Market picture did not significantly change.

Posted by Anonymous at 16:25 Labels:

FOREX trade sideways. After FED hiked the rate, USD turned upward and gained some ground. However, as US inflation being weak and rate hiked this brought to lower inflation expectations, to lower bond yields, which may undermine USD
USD met resistance and slowed down the advance. USD may soften in the short term with better mid-and-long term performance. USD index meets some resistance zone and looks vulnerable to decline
The Dollar Index has bounced from its low at 96.10, its lowest level since last November, to gain back to 97.20. Resistance area extends from it to 97.75. So far USD index failed to break above which create hints on possible corrective decline
EURUSD
EURUSD consolidate above 1.1110 (May low). Eur may be stronger in the short term but may resume decline in the medium term
European economy show some signs of recovery and it is quite possible that US will not be able to implement expected tax reform in the short term. Draghi remains committed to supportive measure and assets purchase, which eliminate chances for top 1.15 in the short term.  However, concern on anti-EU coalition government softened but did not disappear. Europe is waiting for Italy general elections.
Technically the break of May low near 1.1110-1.1130 would open the door to a deeper decline, triggering speculators stops who had the largest net long euro position in last years.
Our recommendations look for confirmed brake of may low (1.1110) to go short
USDJPY
USDJPY met some resistance around 111.80 and declined to 110.95 where found support
US treasury yields dropped amid concern that Trump’s tax reform may be deferred as well as continuing political uncertainty around US president; this puts pressure on USD. However, we are mostly bullish regarding USDJPY. The pair is heading toward 111.95 its closest resistance level.
Our recommendation to go longs when market pullbacks with profit limits around 111.75-111.90
Gold is turning oversold and the reversal point might be close
Gold approached a strong support at 1250-1240 where found some support. Due to political events, we recommend the long opportunities rather than the short. A break above 1255 should bring a positive sentiment back to the market.
Our recommendation is to look for break above 1255 to go long
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.

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )