Forex and Indices – Daily Update – 12.06.18


Fundamental Overview

The exposure of the historic meeting and agreement reached between the U.S. President Donald Trump and the North Korean leader Kim Jong Un for the “denuclearisation” of the Korean peninsula have already been discounted. However, currently, the uncertainty is being headed by the statements of IMF’s Director Christine Lagarde, who has said that the escalation in trade tensions are affecting the global economy, commenting that clouds over global economy are ‘getting darker by the day’ after the G7 summit.

World Trade Organization General Director, Roberto Azevedo, also echoed the comments made by Lagarde adding that the increase in commercial tensions that we are witnessing involves a high economic impact, which can undermine the strength of economic growth since the last financial crisis.”



Forex Technical Analysis Signals


EURUSD is consolidating, developing a pennant pattern bounded by the levels 1.173 and 1.184. A breakout of this pattern could lead the price to the 1.196 level. Invalidation level keeps in 1.1616.


GBPUSD moves in a corrective structure as a flag pattern testing the blue box area as a support level. The breakout of the 1.342 level should lead to the pound to 1.359 resistance. The invalidation level of this scenario is 1.3254.


The structure of the Swiss currency looks like an Irregular Flat Elliott Wave. If this scenario is valid, and for inverse correlation with EURUSD, the USDCHF pair could reach 0.99 level before it drops again. Invalidation level is 0.9983.


EURCAD moves inside a pennant pattern; we expect a breakout of this structure to lead the price to new higher highs at least to 1.5533 level where we foresee the start of a new downward move for to build a new bearish leg.


In the same way as EURCAD and EURUSD, the EURAUD cross is consolidating, but in this case, the price is moving inside a pennant pattern. In the short-term, if EURAUD breaks above 1.5621, we expect fresh highs that should reach the 1.5761 level. Invalidation level for this scenario is 1.5282.

DAX 30

DAX 30 continues driving sideways, in the current session it has touched the blue box reaching the 12,948 pts level, rejecting to the downside. We maintain our scenario on which a price decline below 12,652 pts should activate a bearish second leg, with a target of 12,000 pts. Invalidation level is 13,102 pts.

FTSE 100

A lateral channel of 112 pts bounds the FTSE 100; our vision is that the British index should make a false bullish breakout before continuing its previous downward movement to complete the corrective structure. The potential target is 7,390 with an extension at the 7,073 level. The invalidation level of the bearish scenario is 7,903.5.