07.06.2016
Technical analysis
Euro
General overview
Janet Yellen’s speech became the main event of Monday. According to Janet Yellen the weak Non-Farms raised the regulator’s concerns. The release showed signs of new jobs growth slowdown.
Current situation
The euro remained at the local high that it had reached last week. The pair spent the first day of the week near the level of 1.1370. The trading was low volatile. The pair EUR/USD may bounce off soon from 1.1370 .The resistance is at 1.1370, the support is at 1.1300.
MACD is in a positive area, its signal is bullish. RSI reached the overbought level of 70. RSI shows a sell signal.
Trading recommendations
The downward bounce potential targets are 1.1370 and 1.1300.
Pound
General overview
According to Janet Yellen (the head of the Federal Reserve) if the UK leaves the EU that can cause significant economical circumstances.
Current situation
The pair tried to break the level 1.4400 but failed and remained in a short range 1.4400 – 1.4480. Traders seem to take a pause after the last week decrease. The resistance is at the level of 1.4480, the support is at 1.4400.
MACD indicator is in a negative area, its signal line is below a histogram. MACD kept growing. RSI is in a neutral zone giving no signal.
Trading recommendations
We suppose the growth will be continued now. The first target is the level 1.4480, the next one is 1.4560.
Yen
General overview
The Fed Chairman noted in her speech that the current monetary policy was moderately challenging. The regulator expects further progress on its goals. The Fed will closely monitor any changes in the labor market.
Current situation
The pair made attempts to break the level of 106.60. The dollar reversed some losses by the end of Monday. The USD/JPY broke the level 106.60 upwards and tried to get hold over it. The resistance is at the level of 107.40, the support is at 106.60.
MACD is in a negative area. MACD kept growing. RSI approached the oversold level of 30 and bounced off it.
Trading recommendations
The buyers need to break above 107.40 for a steady growth. The way to the mark 108.20 will be opened after this breakthrough.
Franc
General overview
The Janet Yellen’s speech (the Federal Reserve Chairman) became the main event of Monday. The dollar slightly recovered against major currencies in anticipation of her comments. According to Janet Yellen the prospects of the US economy is very uncertain.
Current situation
The pair was decreasing the whole day yesterday. Sellers could take the price down. The pair USD/CHF broke the level 0.9750 and touched 0.9700. The new local low is at 0.9680. The price failed to go deeper and bounced off the support 0.9700. The resistance is at the level of 0.9850, the support comes at 0.9750.
The indicator MACD is in a negative area. The signal line is in the histogram. The indicator is below 30 and is oversold. RSI shows a buy signal.
Trading recommendations
We advise to long with the first target – 0.9750. When the pair consolidates above the first target, we can open deals to the level of 0.9850.
Brent
General overview
According to Janet Yellen the price of oil keeps the inflation at low levels. Oil prices began to grow.
Current situation
The Brent still looks bearish. The quotes bounced off 49.60 and tested the mark 50.50. The black gold did not move further and remained at the reached mark. The resistance is at 50.50, the support is at 49.60.
MACD is in a positive area. MACD kept growing. RSI approached the overbought level of 70.
Trading recommendations
If the price fixates above the resistance 50.50, it may continue the upward trend in the short term. The potential target is 51.50.
Gold
General overview
On Monday, the gold futures rose to two-week high in anticipation of Janet Yellen’s speech. Traders expected to get clues regarding the next interest rates hike in the US.
Current situation
The gold remained in a flat on Monday between the levels 1248 - 1239. The technical picture is uncertain. The quotes have recently broken 1215 and 1235. However the price failed to grow further and stopped near the mark 1250. The resistance is at the level of 1260, the support is at 1235.
The indicator MACD is in a negative area, its signal line is in the histogram. The indicator is giving a buy signal. RSI reached the overbought level of 70 and shows a sell signal.
Trading recommendations
The potential decrease target is the support level of 1235.
DAX30
General overview
The news that the USA might not raise the rates this summer became an important driver of optimism on global bonds markets. The European stock markets closed in the green zone, supported by growth of shares of energy and raw material producers.
Current situation
The index DAX 30 remained in a flat. The index was traded between the levels of 10077 – 10158. The resistance is at 10175, the support come in at 10000.
The indicator MACD is in a negative area. The MACD signal line is in the histogram. The indictor kept decreasing yesterday. RSI reached the oversold level of 30 and bounced off it.
Trading recommendations
The index can grow to the resistance level of 10175. After breaking 10175 the buyers may go to 10350.
Dow Jones
General overview
If we keep hearing the Fed’s soft statements and if the regulator declares the risk of further economic decline the US dollar may get under pressure once again. The dollar decrease will cause a new wave of purchases in the Bonds market.
Current situation
The Dow Jones kept its bearish movement. The index broke and consolidated over the resistance at 17900 on Monday. The resistance is at the level of 18000, the support is at 17900.
MACD is in a positive area and is growing. RSI approached the overbought level of 70.
Trading recommendations
We believe the growth will be continued now. The first target is the level 18000.
Nasdaq
General overview
The external environment was positive for the index. Nasdaq rose by 0.26%. The major US stock indices showed a moderate growth.
Current situation
The index Nasdaq was in a flat during the European session of Monday. The index started to grow by the end of Monday. It bounced from the mark 4506 and grew to the way of 4550. The index looks bullish. The resistance is at the level of 4550, the support is at 4500.
The indicator MACD is in a positive area and keeps decreasing. RSI approached the overbought level of 70.
Trading recommendations
The index is likely to go to the support level of 4500.
*Analytical review is presented by the leading analyst of the broker Fort Financial Services, Alexander Kofman
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