On the H4 chart, a downtrend is forming and an upward correction is observed. The instrument is trading near the lower line of Bollinger Bands; the indicator cloud is expanded, the resumption of decline in the short term is possible, at the end of the correction. MACD histogram is in the negative zone and gradually building up volumes. The signal line is crossing the body of the histogram from above forming a signal to open sells. Stochastic is in the neutral zone on the border with the overbought area; the lines of the oscillator are directed upwards. The signal to open long positions remains.
Forex forecasts and market outlooks
High-quality Forex forecasts and financial market reviews from professional analysts are added daily!
Clients of the Tifia broker get exclusive access to high-quality materials from independent analytical agency Claws&Horns in their Client Cabinet: technical and fundamental market analysis, Forex economic event calendar, currency, stock, index forecasts, trading indicators signals and much more.
EUR has shown steady growth against USD during today's Asian session, recovering from a decline last Thursday from new local highs since June 11. The recovery of the "bullish" trend of the instrument is due to optimistic investor sentiment regarding the prospects for the European economy. In addition, alarming statistics on the incidence of coronavirus in the United States puts significant pressure on USD. Analysts believe that the growth rate of the US economy will be significantly lower than previously calculated values, which will reduce the economic gap between the US and the eurozone. Today's trading is likely to be fairly calm, given the semi-empty macroeconomic calendar. Attention should be paid only to the speech of the FOMC member John Williams, as well as the publication of the US Federal Budget Balance for June.
Today, during the Asian session, the USD/CAD pair is falling slightly, testing the level of 1.3555 for a breakdown. CAD is supported by the Canadian labor market report for June published last Friday.
Today, during the Asian session, the NZD/USD pair shows flat trading dynamics, testing the level of 0.6580 for a breakout. Statistics from New Zealand insignificantly supports the instrument. Thus, the June food price index increased by 0.5% MoM after a decline of 0.8% MoM in the previous month.
AUD is showing insignificant growth against USD during today's Asian session, recovering from a "bearish" end of trading last week. Investors are buying AUD amid taking a short profit on the instrument, while fundamentally the picture is changing little.
The price may grow.
On the 4-hour chart, an upward correction of the higher level develops as the wave (B), within which the fifth wave v of C of (B) forms. Now, the fifth wave of the lower level (v) of v is developing, within which the wave v of (v) is forming. If the assumption is correct, the price will grow to the levels of 1830.00–1845.00. In this scenario, critical stop loss level is 1772.70.
The pair is in a correction, a fall is possible.
On the 4-hour chart, a downward correction of the higher level developed as the wave (2), and the formation of the wave (3) started, within which the first wave of the lower level 1 of (3) develops. Now, a local correction is forming as the fourth wave iv of 1, within which the wave (c) of iv is forming. If the assumption is correct, the pair will fall to the levels of 1.1155–1.1075. In this scenario, critical stop loss level is 1.1371.
The data on Japan’s Tertiary Industry Index for May are due at 06:30 (GMT+2). The index is released by the Ministry of Economy, Trade and Industry and indicates the domestic service sector in Japan such as information and communication, electricity, gas, heat, and water services, transport, wholesale and retail trade, finance and insurance, and welfare. It is a leading indicator for the Tankan Services PMI. Since February, the indicator has been gradually decreasing and in April it reached –6.0%. If this trend persists, it may put pressure on JPY.