Trading plan for 16/06/2017: Bank of Japan left the monetary policy specifications unchanged while inflation expectations stay weak despite enhancing financial conditions. As an outcome, JPY is the weakest currency from the G10 basket and is the only one losing to the dollar. The greatest are risky currencies – AUD (+0.15%), GBP, and NZD (+ 0.1%). The United States dollar is picking up speed throughout the board again.On Friday
16th of June, the occasion calendar is hectic with essential financial news. Eurozone will reveal the Customer Cost Index, Russia will provide Key Bank Rate decision, and Canada will post Foreign Securities Purchases. The US will release Structure Permits, Real estate Begins, and Michigan Customer Sentiment Index.EUR/ USD analysis for 16/06/2017:
The Consumer Rate Index information are scheduled for release at 09:00 am GMT and market individuals anticipate no change here, so the 1.4% annual infaltion boost must stay in place. In April, the increase was much greater at 1.9%, which some commentators incorrectly interpreted to imply that the European Reserve bank is close to its inflation target of 2%. Low inflation readings, in addition to the moderate and decreasing inflation outlook, will basically keep the ECB from too-hawkish statements in the future. Regardless of an absence of changes in ECB financial policy, the inflation is not rising quickly enough in the Eurozone and recent dovish remarks from ECB President Mario Draghi still support the view of wait-and-see technique implemented by ECB. Additionally, the FED hawkish remarks today may suggest the EUR/USD pair will face more selling pressure in the near future as United States policymakers have actually accepted deliver a minimum of one more hike this year.Let’s now take a look at the EUR/USD technical photo on the H4 amount of time. The marketplace is too weak to rally above the golden trend line resistnace, so a failure is expected around the level of 1.1200 once again, even if today’s information will be better than expected. The market conditions are starting to look oversold and the momentum indicator is still hovering listed below the fifty level, so the price action at the end of the week need to stay sideways. The closest technical support is seen at the level of 1.1130 – 1.1108 and the next technical resistance is seen at the level of 1.1236.
Market Picture: Crude Oil trades below
78% Fibo level The prices of Crude Oil degraded below the 78%Fibo and now are trading just above the last Might’s low at the level of $43.74. All of the attempts to rally higher resulted only in a phony breakout above the navy pattern line and after that the price made new lows. The marketplace conditions remain oversold, however the momentum indicator is still hovering below the fifty level, so no bullish pressure is present at the moment. The next technical resistance is seen at the level of $45.21.
Market Picture: AUD/USD under an increasing selling pressure
On the daily time frame chart of AUD/USD, selling pressure (gray rectangle) around the 61%Fibo level can be seen, however the pair is still attempting to break out above the technical resistance at the level of 0.7636. The market conditions look overbought, so a restorative relocate to the downside can occur anytime now. The next technical support is seen at the level of 0.7568
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