Market Analysis on June 26-30

EUR/USD Forex Weekly Overview (June 26 - 30)

The EUR/USD has taken a strong stance on the bullish case after rallying more than 200 pips since the beginning of the week. We broke above key resistance level 1.1295 which was the high made after the Fed hiked rates for the second time in 2017. The catalyst behind the strong EUR/USD rally was the signals from the ECB President Mario Draghi that the ECB may reduce the bond buying stimulus program.

The EUR/USD exchange rate jumped to a 1-year high and levels not seen since June 2016. Going forward, on the upside, we have a major resistance level at 1.1615, 2016 high, but it’s very unlikely the current rally will continue without first a retracement. We have an extreme overbought RSI reading, which suggests a retest of the 1.1280 broken resistance.


GBP/USD Forex Weekly Overview (June 26-30)

The GBP/USD has wiped out previous losses and is trading a 3-week high. The intraday resistance level 1.2800 has been broken, but we lack the needed momentum to see follow through. More, we have an overbought RSI reading that suggests the most probable scenario is for GBP/USD to return back inside the previous week’s range. The first level of interest on the downside is at 1.2700 intraday support and middle of the range.


USD/CHF Forex Weekly Overview (June 23 - 26)

The USD/CHF technical pattern remains strongly bearish, but nothing goes in a straight line. We have successfully managed to break below 0.9613 key swing low, but we lack momentum as the RSI is showing an oversold reading. The broad-based dollar weakness looks stretched and sooner rather than later we should expect a retracement. The first level of resistance is at 0.9667 from where we can expect a reaction lower; however, a break and a daily close above it can suggest a deeper retracement.


USD/CAD Forex Weekly Overview (June 26 - 30)

The USD/CAD has managed to break to new lows reaching levels not seen since the beginning of the year. As long as we stay below the broken support level 1.3166 we should be targeting the big psychological number 1.3000. However, a close back inside the previous trading range will signal more consolidation.


Gold Weekly Overview (June 26 - 30)

Gold price action remains in a trading range between $1241 support level and $1258 resistance level. The violent sell-off during the beginning of the week was attributed to a fat finger, but we already erased most of the sell off and we’re almost flat. Since we’re trading inside the middle of the range only a break in either direction of the current range can signal either a resumption of the current bearish trend started from the beginning of June or either a reversal which will put the focus back on the big round number 1300.

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