Forex Market Analysis

U.S. Inflation Grows Firmly In June – Forex and Daily Update – 12.07.18

Fundamental Overview

U.S. inflation grows firmly in June.

Forex Trading Signals: The Consumer Price Index (YoY) in the United States in June reached the highest level in 6 years, climbing to 2.9% from the 2.8% reported in May. According to what was stated by the U.S. Bureau of Labor Statistics, the CPI in June increased driven by the food index, which advanced 0.2 per cent; and the gasoline index, which grew by 0.5 per cent. Despite this increase, the energy index decreased 0.3 per cent, mainly due to the Energy Services index, which fell 1.5 per cent in June.

Source: Forex Trading Signals – Forex.Academy Collection

Technical Overview


The EURUSD 2-hour chart is showing bullish signals due to the price making higher highs and higher lows. Currently, the common currency is making a retrace to the green box, from where we expect new upsides to the 1.19067 area, completing a major degree connector. Invalidation level is 1.15080.



The GBPUSD 2-hour chart is making a new bearish leg after the upward sequence in 5 moves started on June 28th. We expect a continuation of the previous bullish cycle from the zone between 1.3181 to 1.3099 with a target placed on 1.3475 area from where the pound should decide the next moves. Invalidation level of the bullish cycle is at 1.30494.



The USDCHF 2-hour chart is making a breakout of the consolidation range which is developing from the first half of June. The RSI oscillator shows that price has a bullish bias. In the short-term, we expect a limited retrace to incorporate to the bullish long-term trend. The invalidation area is 0.98579.



The EURCHF cross in the 2-hour chart is moving bullish after the breakout above 1.1565 level. We expect more upsides which could drive the cross to the targets at 1.1768 in the short-term, and 1.19475 in the long-term. Invalidation level is 1.14799.



The GBPCHF cross has broken up the psychological 1.32 resistance. We expect a retrace to the area between 1.319 until 1.31057, from where the price should continue rising to 1.3312 level in the short-term and the 1.3442 level in the mid-term. Invalidation level is 1.3023.


FTSE 100

FTSE 100 in the 2-hour chart continues moving sideways in a complex corrective structure, but the main trend is bullish. We expect a limited upside to 7,792 level, from where we should wait for a new connector completion. Invalidation level is 7,508.


DAX 30

The DAX 30 is bouncing from the Potential Buy Zone (green box), from where we expect an upward movement to the area between 12,695 to 12,742. If DAX climbs above 12,807 pts, the German index could reach and test the 13,020 level resistance. Invalidation level is 12,104.


Leave a Reply

Your email address will not be published. Required fields are marked *

Exit mobile version