Home Forex Forex Market Analysis Forex and Indices – Daily Update – 03.07.18

Forex and Indices – Daily Update – 03.07.18

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Fundamental Overview


Asian Session with all eyes placed on the RBA decision.

Forex and Indices: In the Overnight session, markets will place their eyes on the Board of Reserve Bank of Australia (RBA) interest rate decision in which the analysts’ consensus expects that Governor Philip Lowe and the Board members decide to keep the interest rate at the record low 1.50% which is unchanged since August 2016.

Despite the unemployment rate drop in May to 5.4%, and the inflation rate kept unchanged in May at 1.9%, being near to the RBA inflation target; The cooling on housing market and  the increased volatility in global markets due mainly to the tariffs conflicts, could drive to the RBA  to decide to keep the interest rate unchanged again.

Forex and Indices - Daily Update

Source: Forex.Academy Collection – Forex and Indices


Technical Analysis


EURUSD

The pair still is moving in a bearish wedge pattern which, if it breaks below 1.15649, could drive the price to a new lower low ending the bearish cycle near to the 1.1450 zone coinciding with the lower trendline of the bearish wedge. In the opposite case, if EURUSD breaks above 1.16801, the common currency could drive to test the invalidation level placed at 1.1852.


 

GBPUSD

GBPUSD is still running in a bearish wedge and has a new lower low pending before the cable starts a new bullish cycle. This lower low could be developed as a Bullish 2B pattern (Bear Trap) as a reversal pattern. As long as the price does not make a reversal pattern, the price will continue its bearish bias. Invalidation level of the bearish cycle is at 1.34725.



USDCHF

USDCHF is developing a triangulation structure. The RSI oscillator shows that the price has a bearish bias. However, as the price doesn’t have a definite trend in the short-term, we will expect a false breakout before we define our bias for this pair. In the long-term, the Swiss currency is consolidating a rally which started on February 15th, 2018.



EURAUD

The EURAUD cross maintains a bullish bias, due to the price moving inside an ascending wedge. Additionally, RSI is running in an ascending trend and is above the 60 level. We can expect a false breakout to the 1.59 zone before it completes the bullish cycle. If the price falls below 1.5702, we could evaluate short positions.



 

GBPAUD

The GBPAUD 2-hour chart shows a sideways move, as long as the price moves above 1.78747. The cross will have a last bullish target pending, placed at 1.8085 with an invalidation level below 1.78080, from where we will consider short positions with a profit target in the 1.74 zone.




FTSE 100

The FTSE 100 is moving sideways as a complex corrective structure consolidating the March to May rally. In the middle of global volatility in the stocks markets, we prefer to consider long positions rather than the short positions. The short-term support to control is 7,500 pts.




DAX 30

The DAX 30 2-hour chart shows that the German index has found support at 12,100 pts. From this area, we could start to propose potential zones for entry in the long side.



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