InvestMacro

by JustForex

According to the minutes of the Fed’s meeting in June, which were published yesterday, Fed officials are ready to take steps to reduce asset purchases as early as 2021. But the target for the beginning of the reduction of the monthly bond purchases has not yet been reached. There is some kind of uncertainty about the timeframe of meeting the conditions for a reduction. Opinions are divided. Some representatives expected the target to be reached sooner than expected, while others preferred to wait for incoming economic data. Considering the decrease of the bond yields, the S&P 500 and Nasdaq indices closed at record highs on Wednesday. Technology, commodity, and industrial sectors were the leaders of the growth.

The European stock market closed in the green zone. Shares of mining companies and producers of sports goods were the leaders of the growth. The market was also supported by the European Commission’s forecasts of the economic growth in the euro area for the current and next year. According to a new forecast, the European economy will grow by 4.8% this year and by 4.5% next year. Also, the ECB has agreed to set a new inflation target of 2%.

Oil prices are correcting. Investors are waiting for new signs of progress in negotiations to increase production and resolve the dispute between Saudi Arabia and the UAE. But the minister of Energy of Saudi Arabia, Abdulaziz bin Salman admitted that the next meeting of the OPEC+ coalition might not take place until August. The oil market remains in a state of uncertainty for now. However, analysts of JPMorgan Chase are sure that OPEC+ countries will agree upon a monthly increase of oil production from August and count on the growth of oil prices to $80 per barrel.

The situation in the precious metals market remains unchanged. The reduction of profitability of government obligations led to the increase in gold and silver prices. The fundamental picture is now in favor of growth in prices of precious metals.

Asian stocks fell to a six-week low as the sell-off of technology companies continues amid China’s move to close a loophole for Chinese IT giants to float IPOs in the US. The Chinese government has begun drafting amendments to legislation regulating the listing of Chinese companies abroad. The amendments would allow the authorities to block Chinese companies from listing abroad even if its organization is registered outside China.

Main market quotes:

S&P 500 (F) 4,358.13 +14.59 (+0.34%)

Dow Jones 34,681.79 +104.42 (+0.30%)

DAX 15,692.71 +181.33 (+1.17%)

FTSE 100 7,151.02 +50.14 (+0.71%)

USD Index 92.71 +0.16 (+0.18%)

• – Australia RBA Governor Philip Lowe’s Speech at 05:30 (GMT+3);
• – ECB Monetary Policy Statement at 14:30 (GMT+3);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
• – US Natural Gas Storage (w/w) at 17:30 (GMT+3);
• – US Crude Oil Inventories (w/w) at 18:00 (GMT+3).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

By Lukman Otunuga Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.1826; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.1845 and then resume moving downwards to reach 1.1685. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 1.1945. In this case, the pair may continue growing towards 1.2035.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.2461; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.2425 and then resume moving upwards to reach 1.2685. Another signal in favor of a further uptrend will be a rebound from the upside border of the Triangle pattern. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1.2325. In this case, the pair may continue falling towards 1.2245.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.3802; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3815 and then resume moving downwards to reach 1.3575. Another signal in favor of a further downtrend will be a rebound from the bearish channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.3905. In this case, the pair may continue growing towards 1.3995.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By Orbex

AUDUSD retreats from major resistance

The Australian dollar surged after the RBA announced it would trim its QE by $1 billion.

The initial rally above 0.7525 has put the bears under pressure. A bullish MA cross suggests strong buying interest in reversing the correction.

Price action has retracted from the major supply area around 0.7600. The RSI’s double-dip into the overbought zone may have hindered its advance.

A bullish breakout would trigger an extended rally to 0.7700. 0.7460 is a critical floor as the Aussie seeks support.

USDJPY tests critical support

The US dollar drifts lower as traders await the Fed minutes.

The greenback has met stiff selling pressure at March 2020’s high, at 111.70. A combination of profit-taking and fresh selling has pushed the pair down to the base of the latest rally (110.40).

Price is now at a crossroad as a bearish breakout may trigger a correction towards 109.80.

However, a near-oversold RSI may attract buyers in the demand zone. A rebound will need to clear the psychological level of 111.00 first before it could retest the previous high.

EURGBP bounces off key demand zone

The euro whipsawed higher after the eurozone’s better-than-expected retail sales in May. The single currency saw strong buying interest at the key demand zone of 0.8530.

Early bulls have seen an oversold RSI as a buying opportunity. Momentum above 0.8560 indicates that sellers may have rushed to close their positions. The RSI has reemerged back to the neutral area.

0.8580 is the next target, its breach could clear the path for 0.8610, the top of the recent consolidation range.

By Orbex

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is still rebounding far from the support level, where it has formed several reversal patterns, such as Harami. At the moment, XAUUSD may reverse and start a new growth to reach the resistance area at 1830.00. At the same time, an opposite scenario implies that the price may correct towards 1770.00 before resuming the ascending tendency.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the ascending impulse continues. By now, NZDUSD has formed several reversal patterns, such as Harami and Inverted Hammer, close to the support level. The correctional target is the resistance area at 0.7000. After testing this level, the asset may rebound from it and resume moving downwards. However, an alternative scenario implies that the price may fall towards 0.6975 without reversing and correcting.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is forming another correction within the downtrend. By now, GBPUSD has formed several reversal patterns, such as Harami, not far from the support area. At the moment, the pair may reverse and start a new pullback towards the resistance level. In this case, the correctional target may be at 1.3880. After testing it, the market may rebound and resume falling to reach the support area at 1.3700. Still, there might be an alternative scenario, according to which the asset may continue falling towards the support area without reversing and correcting.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By Orbex

The current structure of the DXY suggests that we are in a correction wave IV of a cycle degree. Its formation is similar to a large triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag.

The first four parts of this zigzag have ended. Now the intermediate wave (Z) could complete the corrective move and with it the primary wave Ⓩ. This will require the completion of a sub-wave C of a minor degree to confirm the bullish move.

Thus, in the coming trading days, the impulse C is likely to develop to 94.16. At that level, wave Ⓩ will be at 123.6% of wave Ⓨ.

If we look at the alternative scenario, we can see the completed cycle correction IV in the form of a double zigzag.

The fifth cycle wave is currently under construction, which has already completed the primary sub-waves ① and ②.

Thus, if this scenario is confirmed, the market could move lower along with the primary wave ③.

The end of this wave is likely near the level of 86.27, where it will be at 161.8% of primary impulse ①.

By Orbex

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1859
• Prev Close: 1.1823
• % chg. over the last day: -0.30%

The dollar index increased sharply yesterday, triggering a decline of the major currency pairs against the dollar. Despite positive data from Europe, the EUR/USD currency pair decreased by 0.3%, falling back to the 1.1809 support level.

Trading recommendations

• Support levels: 1.1809
• Resistance levels: 1.1847, 1.1911, 1.1973, 1.2002, 1.2050, 1.2109, 1.2144, 1.2174, 1.2212

The trend is still bearish. The price returned to the 1.1809 support level, forming a double-bottom pattern. But the initiative from the buyers is very weak. The MACD indicator is in the negative zone, and there are signs of divergence on the higher timeframes. Under such market conditions, it is better to trade intraday and look for buy trades from the support levels now. There is no good entry point for short positions at the moment.

Alternative scenario: if the price breaks out through the 1.1972 resistance level and fixes above, the general uptrend is likely to be resumed.

News feed for 2021.07.07:

• – Europe Economic Forecasts (q/q) at 12:00 (GMT+3);
• – US JOLTs Job Openings (m/m) at 17:00 (GMT+3);
• – US FOMC Meeting Minutes at 21:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3835
• Prev Close: 1.3794
• % chg. over the last day: -0.30%

The United Kingdom is a supplier of Brent crude oil and is ranked 13th among oil-producing countries. Yesterday’s sharp drop in oil prices and strengthening of the dollar index caused the fall of GBP/USD quotes. Today’s FOMC minutes will be crucial in terms of understanding where the British pound will go next.

Trading recommendations

• Support levels: 1.3756
• Resistance levels: 1.3835, 1.3923, 1.4002, 1.4075, 1.4101, 1.4138, 1.4191

The GBP/USD trend is bearish on the H1 timeframe. Buying pressure has become weak now; the price drops below the moving average. The MACD indicator is in the negative zone, but there are signs of divergence. Under such market conditions, traders are better to look for both sell trades from the resistance levels and buy trades from the support levels on the intraday timeframes.

Alternative scenario: if the price breaks out through the 1.3922 resistance level and consolidates above, the bearish scenario is likely to be canceled.

News feed for 2021.07.07:

• – US FOMC Meeting Minutes at 21:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 110.93
• Prev Close: 110.61
• % chg. over the last day: -0.29%

The futures on the Japanese yen, which has an inverse correlation with the USD/JPY currency pair, sharply increased yesterday. The most interesting thing is that the rise in the dollar index did not stop the fall of USD/JPY, which means that the Japanese yen is now strengthening more than the US dollar.

Trading recommendations

• Support levels: 110.47, 109.83, 109.62, 109.31
• Resistance levels: 110.73, 111.06, 111.48, 110.73, 112.18

From the point of view of technical analysis, the trend remains bullish. But the price reached the change priority level yesterday and tried to break down through it, but the buyers managed to defend their positions. Taking into account the divergence on the MACD indicator, traders are better to look for buy deals from the support levels. For confident selling, it is better to wait for a breakdown of 110.47 support level.

Alternative scenario: if the price falls below 110.47, the general downtrend is likely to be resumed.

News feed for 2021.07.07:

• – US FOMC Meeting Minutes at 21:00 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2337
• Prev Close: 1.2456
• % chg. over the last day: +0.96%

The USD/CAD currency pair increased by 0.96% by the end of the day. The USD/CAD quotes are highly dependent on two factors now: the dollar index and oil prices. Yesterday, the dollar index sharply increased while oil prices collapsed, which provoked a rapid jump of USD/CAD quotes.

Trading recommendations

• Support levels: 1.2404, 1.2347, 1.2312, 1.2260, 1.2190
• Resistance levels: 1.2478, 1.2519

Technically, the trend remains bullish. The price is trading above the moving average, but there is a strong deviation from the midline. The MACD indicator has returned to the positive zone with no signs of divergence. Under such market conditions, it is best to trade on the lower timeframes. Buyers need to wait for a slight pullback to the nearest support levels. Traders can also look for entry points on intraday timeframes for short positions, but only with short targets because it will be trading against the trend.

Alternative scenario: if the price breaks down through the 1.2260 support level and fixes below, the downtrend is likely to be resumed.

News feed for 2021.07.07:

• – Canada Ivey PMI (m/m) at 17:00 (GMT+3);
• – US FOMC Meeting Minutes at 21:00 (GMT+3).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

by JustForex

The Dow Jones and S&P 500 stock indices declined on Tuesday, moving back from last week’s record highs, while the Nasdaq increased to a new high. The US ISM Services PMI fell from 64 to 60.1 points, indicating a slight slowdown in the economic recovery. The main problems with the business recovery are caused by inflation, logistical problems, raw materials, and personnel shortages. Investors are also closely watching the situation in the oil market. Oil is usually denominated in the US dollars, and the United States is the largest exporter of fuel. Oil had increased in price for foreign partners, which led to the increased demand for the US currency. The growth of the US currency is reflected in the growth of the dollar index, which in turn affects major stock indices.

At the same time, the US airlines Southwest Airlines Co and American Airlines Group Inc. are forced to delay or cancel flights due to technical problems and staff shortages amid recovering demand for domestic flights. Since the COVID-19 pandemic began, the US airlines have received $54 billion from the government to cover their employee costs. One of the conditions for obtaining financial aid was that the companies would not cut jobs. But the companies did the opposite and convinced tens of thousands of employees to retire earlier or take a leave. Now, the airlines are recruiting staff again.

The pharmaceutical market has its own news. The US biopharmaceutical company Alexion Pharmaceuticals is one step away from buying British company AstraZeneca. At the same time, shares of BionTech and Pfizer fell sharply yesterday due to a decline in the effectiveness of their vaccine. A study in Israel showed that the vaccine began to lose effectiveness in preventing the delta strain of COVID-19 in recent weeks.

The European stock market closed in the red zone yesterday. Statistics published the day before showed an increase in retail sales in Europe to the maximum value for the year. But the volume of orders in the industrial sector in Germany decreased by 3.7%, which was a surprise to analysts. Index of economic sentiment also unexpectedly decreased not only in Germany but throughout Europe too. In its turn, Deutsche Bank announced the launch of a new set of indices for tracking 21 currencies of the developing countries.

Oil prices decreased more than by 2.5% due to OPEC+ disagreements. OPEC+ representatives failed to agree on plans to increase production to meet the rising demand for fuel. The United Arab Emirates did not support a proposed six-month extension of limitations on production. No date for resumption of negotiations has been announced yet. This situation plays in favor of further growth in oil prices, as the supply does not keep up with the growing demand. Now, analysts are sure that the price of $100 per barrel is just a matter of time.

The US Treasury securities significantly increased yesterday, which triggered gold and silver to fall in prices, as these precious metals have an inverse correlation with the government bond yields. The fundamental picture is now in favor of precious metals prices going up, but investors are waiting for the FOMC minutes release to evaluate the Fed’s further plans. If the monetary policy remains unchanged, the yields of government bonds will start to fall again, which will lead to an increase in gold prices.

The COVID-19 delta strain outbreak is having a negative impact on Asian economies. Investors are concerned about the rapid spread of the virus. Australia is extending restrictions in major cities and asking people to stay home. Schools are switching to remote learning. This situation is negatively affecting the business climate, in particular, the transportation sector and restaurant companies are struggling the most. Investors are also concerned about China’s harsh measures against technology companies.

Main market quotes:

S&P 500 (F) 4,343.54 -8.8 (-0.20%)

Dow Jones 34,577.37 -208.98 (-0.60%)

DAX 15,511.38 -150.59 (-0.96%)

FTSE 100 7,100.88 -64.03 (-0.89%)

USD Index 92.54 +0.32 (+0.35%)

• – Europe Economic Forecasts (q/q) at 12:00 (GMT+3);
• – US JOLTs Job Opening (m/m) at 17:00 (GMT+3);
• – Canada Ivey PMI (m/m) at 17:00 (GMT+3);
• – US FOMC Meeting Minutes at 21:00 (GMT+3).

by JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

RoboMarkets, a European broker, has added CFDs on Brazilian stocks to its R Trader platform. The new trading instruments added to the R Trader terminal are CFDs on stocks of the 30 most liquid companies that are traded on Bovespa, the Sao Paulo Stock Exchange.

This list now includes such companies as Petrobras (PETR4), Itau Unibanco (ITUB4), Banco Bradesco (BBDC4), AmBev (ABEV3), Vale (VALE3).

Conditions for trading CFDs on Brazilian stocks:

• Commission – from 0.1% (but not less than 10 BRL)
• Spreads – from 0 pips
• Trading time – from 4:10 to 10:55 PM

Kiryl Kirychenka, the head of the R Trader project, says: “I’m very glad we’ve added an exclusive opportunity for our clients to trade new stocks on the market, which we didn’t cover before. Brazil is in the Top 10 countries with the highest GDP. A friendly macroeconomic environment, including high energy prices, supports a positive outlook for Brazilian stocks, which offer attractive prices and great growth potential. At the same time, developing countries imply additional risks because such economies may be rather unsteady in their growth”.

“Earlier, our platform offered the option to trade ADRs Brazilian stocks and ETFs, for example, EWZ, but access to CFDs on stocks that are traded on the local market significantly widens investment opportunities and helps our clients to diversify their portfolio. We’re constantly improving our products, adding new instruments, and doing our best to provide the best possible trading conditions”, – adds Kiryl Kirychenka.

About RoboMarkets

RoboMarkets is an investment company with the CySEC license No. 191/13. RoboMarkets offers investment services in many European countries by providing traders, who work on financial market, with access to its proprietary trading platforms. More detailed information about the Company’s products and activities can be found on the official website at www.robomarkets.com.

By Lukman Otunuga Research Analyst, ForexTime

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com