Home Forex Forex Market Analysis Forex and Indices – Daily Update – May 31st, 2018

Forex and Indices – Daily Update – May 31st, 2018

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Update On Forex Market Hot Topics:


  • The U.S. Commerce Department announces tariffs to EU.
  • Euro currency shows bullish signals against crosses.
  • European Indices Continue the Selloff.

The U.S. Commerce Department announces tariffs to EU.

The U.S. Commerce Secretary Wilbur Ross announced that it would impose tariffs on European Union steel and aluminium imports as shortly as Thursday. The European Commision President Jean-Claude Junker considered this measure to be “totally unacceptable” and will introduce a settlement dispute with the WTO, and will announce counterbalancing measures in the coming hours, he said.

In this session, EURUSD is correcting the bullish move showed in the last trading session where it climbed above the Invalidation level placed at 1.16317. We foresee that the price could make a corrective structure as a flag pattern, as a continuation of the previous move. The invalidation level is at 1.15205, the next targets levels are 1.1811 and 1.1975.

Update On Forex Market


GBPUSD is consolidating the bearish trend, short-term. In the last trading session, the cable has corrected the strike to the invalidation level of the bearish cycle located at the 1.33231 level. Our vision is that the Pound still has space for more declines, likely to be the area between 1.31095 and 1.29365.


 

USDCHF is moving close to the bullish long-term trend-line, where the first target area is placed between 0.9815 and 0.9783. If the price continues its movement down, the next support levels are 0.9725 and 0.9641. Invalidation level remains at 0.99831.


 


Euro currency shows bullish signals against crosses.

EURJPY has made a bear trap (or 2B Pattern) testing the 124.621 level, from where the price made a bullish impulsive move advancing above the 127 level. Now we anticipate that the price could make a consolidation pattern as a flag and then from its breakout, the price could see new highs in the 131 zone. Invalidation level is below 124.998.

Update On Forex Market


 

EURGBP is moving inside a consolidation structure where the last internal cycle shows an impulsive bullish bias. Oscillators confirm the bullish bias of the cross. The breakout of the upper line of the channel could boost the price to the 0.89 area. Invalidation level is 0.8997.


 


European Indices Continue the Selloff.

The FTSE 100 closed the session slightly bearish. The British index could make a new high as an A-B-C pattern to 7,800 pts, from where the price could create a new lower low with 7,573 pts as a target. Invalidation level of the bearish cycle is 7,803.5.

Update On Forex Market


DAX dipped more than 1%, dragged like other Euro-zone indices; EURO STOXX 50 felt 1.00%, IBEX 35 drop 1.05% in a session driven by the U.S. tariffs to the EU. The DAX could find support at 12,528 pts, but if it breaks down the 12,386 level, the plunge could be more deep finding support at the 12,000 pts. Invalidation level of the bearish cycle is 13,040 pts.


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