Global macro overview for 04/07/2017

By | July 4, 2017

International macro summary for 04/07/2017: The US ISM Manufacturing Index for June rises

to the greatest level since August 2014. The index increased from 54.9 points to 57.8 points in June and it was well above the marketplace agreement of 55.0 points. The sub-indices likewise offered a good lot of positive information. The Orders Index increased from 59.5 points to 63.5 points while production rose from 57.1 points to 63.2 points. Additionally, there was a substantial boost in order stockpiles which must provide support for production over the next few months.The Work Index registered 57.2 points, an increase of 3.7 points from the May reading of 53.5 points. The Prices Index registered 55 points in June, a decrease of 5.5 points from the May reading of 60.5 points showing greater raw materials’ rates for the 16th consecutive month. Overall, from 18 production industries, 15 reported development in June.The total ISM data for the last month does not recommend that manufacturing is a substantial barrier to more normalization by the Federal Reserve and there is flicky evidence that the US economy has actually recuperated from a soft spot during the 2nd quarter.To verify this situation more data will be needed and Fed policymakers may choose the wait-and-see method to the end of the year in order to justify the next interest rate hike in December 2017. As long as the domestic economy is carrying out relatively well, the employment is high and the unemployment rate is low, the next interest rate is still on the table. Let’s now take a look at the EUR/USD technical picture at the H4 timeframe. The marketplace is rejecting from the overbought trading conditions

, but the momentum sign is still above the fifty level. The next technical support is seen at the level of 1.1295-1.1283 and only a continual breakout below this level would put the bears in control over this market.< img width =" 450" src ="http://qkfx.com/wp-content/uploads/2017/07/global-macro-overview-for-04072017.jpg"alt=" analytics595b4e3743531.jpg "/ >

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Jonathon Alexander

Ichimoku indicator analysis of USDX for July 4, 2017 888011000 110888 The Dollar index is bouncing as expected. The price is now making the minimum bounce requirements towards short-term resistance and previous support at 96.50. Total I expect a larger Dollar index bounce to 98. Red line-resistance Blue lines-bearish channel The Dollar Index is testing short-term resistance at 96.50 where we also find the 4-hour tenkan-and kijun-sen indicators. Oscillators bounce off oversold levels. I expect this bounce to continue higher. Blue lines-bearish channel On a weekly basis, although the pattern is bearish and the price is below the weekly Kumo(cloud), I expect a short-term bounce for a week or two towards 98-98.50. The RSI is diverging and oversold. I expect a minimum of a relocation to the lower Kumo boundary.The product has actually been offered by InstaForex Business -www.instaforex.com

By | July 4, 2017

The Dollar index is bouncing as expected. The price is now making the minimum bounce requirements towards short-term resistance and previous support at 96.50. Overall I expect a bigger Dollar index bounce towards 98.

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Red line – resistance

Blue lines – bearish channel

The Dollar Index is testing short-term resistance at 96.50 where we also find the 4-hour tenkan- and kijun-sen indicators. Oscillators bounce off oversold levels. I expect this bounce to continue higher.

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Blue lines – bearish channel

On a weekly basis, although the trend is bearish and the price is below the weekly Kumo (cloud), I expect a short-term bounce for a week or two towards 98-98.50. The RSI is diverging and oversold. I expect at least a move towards the lower Kumo boundary.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

Ichimoku indication analysis of gold for July 4, 2017 888011000 110888 Gold cost remains in a bearish trend making new lows below $1,235 area to $1,220. The precious metal is getting even more oversold and I think we will soon have an opportunity to see an essential low and reversal. Blue lines- bearish channel Gold price is below both the tenkan -and kijun-sen. Price is likewise bouncing off the bearish blue channel and we might at least see a bounce towards the 4 hour Kumo(cloud)and the upper channel limit near$1,240-45. Black line -long-lasting resistance Blue line- long-term assistance The gold weekly candle light is testing the weekly Kumo. This is crucial assistance.If cost breaks below the cloud we could see a relocation even lower to the blue long-term assistance pattern line near$1,170. The product has actually been offered by InstaForex Company-www.instaforex.com

By | July 4, 2017

Gold price remains in a bearish trend making new lows below $1,235 area towards $1,220. The precious metal is getting even more oversold and I believe we will soon have an opportunity to see a very important low and reversal.

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Blue lines – bearish channel

Gold price is below both the tenkan- and kijun-sen. Price is also bouncing off the bearish blue channel and we could at least see a bounce towards the 4 hour Kumo (cloud) and the upper channel boundary near $1,240-45.

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Black line – long-term resistance

Blue line – long-term support

The gold weekly candle is testing the weekly Kumo. This is very important support. If price breaks below the cloud we could see a move even lower towards the blue long-term support trend line near $1,170.

The material has been provided by InstaForex Company – www.instaforex.com

Jonathon Alexander

European Economics Preview: UK Construction PMI Data Due

By | July 4, 2017

Building and construction Acquiring Managers’ study from the UK and producer costs from euro area are due on Tuesday, headlining a light day for the European economic news.

At 3.30 am ET, Sweden’s reserve bank is arranged to announce its interest rate decision. The bank is expected to keep its repo rate unchanged at -0.50 percent.

At 4.30 am ET, the UK CIPS/Markit building and construction PMI information is due. The index is forecast to be up to 55.0 in June from 56.0 in May.

In the meantime, the Bank of England releases the record of the Financial Policy Committee meeting held on June 21.

At 5.00 am ET, Eurostat is slated to launch euro area producer rates for May. Producer price inflation is anticipated to ease to 3.5 percent in May from 4.3 percent in April.

The material has actually been supplied by InstaForex Business – www.instaforex.com

Jonathon Alexander

PERU: Yearly Inflation Rate Decreases To Lowest Level In Practically 3 Years

By | July 3, 2017

The yearly consumer rate inflation in Peru decreased in June to the lowest level in almost 3 years and is nearing the center of the present target range of 1% to 3% set by the regional reserve bank. Inning accordance with the national statistics workplace, the yearly inflation in Peru decreased from 3.04% in May to 2.73% in June – the lowest reading considering that August 2014, when it was at 2.69%. On a monthly basis, costs in Peru decreased by 0.16% in June, after falling 0.42% in May, recording the 3rd straight month of deflation in the nation. The decline was primarily caused by lower food prices. In previous months, a few of the nation’s crops were negatively impacted by heavy rains brought on by the El Nino weather phenomenon. Leaving out food and energy prices, Peru’s annual inflation was at 2.38% – the lowest level this year -, while the month-to-month rate was at 0.06%.

The material has actually been supplied by InstaForex Business – www.instaforex.com

Jonathon Alexander

COLOMBIA: Central Bank Cuts Rate of interest

By | July 3, 2017

Colombia’s central bank cut its benchmark rate of interest by 50 basis points, to 5.75% per year. The decline, revealed on Friday, was larger than the 25 bp cut expected by market experts. According to the financial authority, experts’ inflation expectations for December 2017 and 2018 are at 4.37% and 3.54%, respectively, somewhat above the reserve bank’s 3% target. The reserve bank likewise reported that in the last month oil rates fell and remain below the forecast by its technical team for 2017. External demand remains financial and weak development for this year is anticipated to be slightly higher than a year before. In this situation, Colombia’s danger premiums have actually increased, and the peso has diminished compared to the dollar. There was unanimity in the Board to cut the benchmark interest rate, but divergence concerning the degree of the monetary policy loosening. 4 from 7 Board members elected the 50 bp cut. The remaining 3 chose a 25 bp cut.

The product has actually been supplied by InstaForex Business – www.instaforex.com

Jonathon Alexander

USD/CAD is ideal on major support, time to purchase

By | July 3, 2017

Price is now checking major assistance at 1.2966(several Fibonacci extensions, horizontal swing low support, Elliott wave theory)and we anticipate a bounce above this level to a minimum of 1.3164 resistance(Fibonacci retracement, horizontal pullback resistance ). Stochastic(34,5,3)is seeing major assistance above 1%where we anticipate a bounce from.Traders Dynamic Index is crossing well above our signal line (red) and our channel(blue)signalling that a bounce is impending.Buy above 1.2966. Set stop loss at 1.2893 and take earnings at 1.3164. The material has actually been offered by InstaForex Company-www.instaforex.com

Jonathon Alexander

GBP/USD profit target reached, prepare to offer once again

By | July 3, 2017

The GBP/USD set shot down towards our earnings target before bouncing up. We now prepare to sell as cost is approaching major resistance at 1.3044(Fibonacci extension, horizontal swing high resistance) and we expect a major reaction from this level for a drop to a minimum of 1.2935(Fibonacci retracement, Elliott wave theory )which needs to be broken to validate a significant drop.Stochastic (34,5,3) is checking 96 % resistance and the price is certainly in strongly overbought territory.Sell below 1.3044. Set stop loss at 1.3081 and take earnings at 1.2935.

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InstaForex Business -www.instaforex.com

Jonathon Alexander

NZD/USD screening significant resistance, prepare for a drop

By | July 3, 2017

Rate is now evaluating significant resistance at 0.7344(Fibonacci extension, horizontal swing high resistance)and we anticipate a drop from here to at least 0.7301 support (Fibonacci retracement, horizontal pullback support). Stochastic(34,5,3)is seeing significant resistance at 95% and we anticipate a strong response below that level.Correlation analysis: AUDUSD and NZDUSD are both highly positively associated as seen in the pie chart.

Both are expecting drops for today too, and it is constantly better when they are moving in tandem.Sell listed below 0.7344.

Set stop loss at 0.7356 and take profit at 0.7301. The material has actually been offered by InstaForex Business -www.instaforex.com

Jonathon Alexander