Forex and indices trading signals for the end of the trading session of June 07th, 2018 and short-term forecast for the coming sessions. In this issue, we make a follow-up of the price cycles of: EURUSD, GBPUSD, USDCHF, EURAUD, EURJPY, FTSE100 and DAX 30.
- Pairs against the Greenback in key levels
- Euro crosses close to make a second leg
- European indices trading signals remain with bearish bias but are not activated.
Pairs Against The Greenback In Key Levels
EURUSD reached the 100% of equal waves in the 1.1831 level; this suggests is that the common currency should make a corrective move, probably to the area between 1.172 to 1.166 levels. The bullish target long-term is the area between 1.1889 to 1.194 levels. Invalidation zone is below 1.1616 level.
USDCHF reached the blue box zone from where we anticipate that the Swiss currency should start a bounce. For this pair, our position has changed from bearish to neutral.
GBPUSD, as expected in the previous daily update, is making a corrective move as a bearish connector, where we expect more rises to the pound. Short-term bullish target is between 1.3485 and 1.36 levels. Invalidation level is below 1.3254.
Euro Crosses Close To Make a Second Leg
EURJPY has reached our target area for the first cycle. By the Alternation Principle from the Elliott Wave Theory, we foresee a complex correction, probably a sideways structure. In principle, the correction could end near 128.6 level. From this zone, the price should pay its bearish divergence. As our readers could see in the chart, the corrective sequence is not tradeable (dashed line.) Invalidation level is 126.330.
For EURAUD we have two scenarios. The first scenario consists of the completion of the internal bullish cycle with the price reaching the 1.5547 level, where it could begin a corrective move. The second scenario is for the price to make a corrective sequence in three waves to the 1.5382 area, where the cross could start a rally to the 1.5547 level. If it soars above the Control Level at 1.5621, it is likely that the price would complete its internal bullish cycle in the zone between 1.57025 to 1.57612 level. Invalidation level is at 1.5282.
European Indices Remain With Bearish Bias But Are Not Activated
The FTSE closed the session in the blue box, the potential bearish move with the target in the area between 7,468 to 7,390.5 is active. If the British index breaks down and closes under the 7680, the bearish targets will be activated. The invalidation level remains above 7,803 pts.
In the same way, the DAX remains with a bearish bias short term, selling positions will activate only if the price breaks down and closes below 12,700 pts, with a profit target at 12,500 pts, and the potential extensions to deeper falls to 12,300 and 11,900 pts. Invalidation level remains above 13,102 pts.