The EUR/USD continues the rally and is approaching the resistance at 1.1850. The weakest currency is NZD (-0.48%) after surprising data release from the New Zealand labor market. The JPY (-0.35%) and CAD (-0.25%) are also under the line.The API report pointed to 1.8 million barrels of crude oil inventories, resulting in 0.8% slide in the price of crude oil. Asian indexes continue to have a positive sentiment between other equity markets.
On Tuesday 2nd of August, the event calendar is light in important economic releases, but the global investors will pay attention to Unemployment Change data from Spain, Construction PMI data from the UK and ADP Non-Farm Employment Change data from the US. Later during the US session, there are two FOMC members speaking: Loretta Mester and John Williams.
EUR/USD analysis for 02/08/2017:
The ADP Non-Farm Employment Change data are scheduled for release at 12:15 pm GMT and the market participants expect quite strong increase in the number of newly employed people in the USA (excluding workers in the farming industry), The number expected is at the level of 189k people, while the last month’s number was at the level of 157k people. Yesterday’s weaker Personal Income and Personal Spending data did not satisfy the global investors, so today’s data are highly anticipated. If the forecast is right, today’s data will provide some reassurance on the economic outlook. No one will confuse today’s estimate as strong, but the market participants projection still points to moderate growth for the macro trend in the near future.
Let’s now take a look at the EUR/USD technical picture at the H4 timeframe. The market is still trending to the upside, so any worse than expected data might result in another spike up toward the next technical resistance at the level of 1.1846 and even above it, at the level of 1.1900. The momentum indicator is still pointing upward and holds above the fifty level, but on the bigger time frames, the market conditions are severely overbought. This is why any better than expected data might trigger a round of a sell-off towards the level of 1.1775 and 1.1711.
Market Snapshot: Crude Oil reverses
The price of Crude Oil had broken above the 78%Fibo at the level of $49.86 but then reversed back towards the last technical support at the level of $48.39. The trading conditions are reversing from the overbought trading zones as well and if the sell-off accelerate, then the next technical support is seen at the levels of $48.19, $47.53 and $47.30.
Market Snapshot: EUR/GBP trades in a narrow range
The price of EUR/GBP is trading inside of a narrow price zone, between the levels of 0.8898 – 0.8994, close to the recent swing highs. Any breakout below the level of 0.8898 might result in a sell-off towards the level of 0.8814, as the range will be broken. On the other hand, a breakout above the level of 0.8994 opens the road towards the next technical resistance at the level of 0.9024.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
Trading plan for 02/08/2017:
The EUR/USD continues the rally and is approaching the resistance at 1.1850. The weakest currency is NZD (-0.48%) after surprising data release from the New Zealand labor market. The JPY (-0.35%) and CAD (-0.25%) are also under the line.The API report pointed to 1.8 million barrels of crude oil inventories, resulting in 0.8% slide in the price of crude oil. Asian indexes continue to have a positive sentiment between other equity markets.
On Tuesday 2nd of August, the event calendar is light in important economic releases, but the global investors will pay attention to Unemployment Change data from Spain, Construction PMI data from the UK and ADP Non-Farm Employment Change data from the US. Later during the US session, there are two FOMC members speaking: Loretta Mester and John Williams.
EUR/USD analysis for 02/08/2017:
The ADP Non-Farm Employment Change data are scheduled for release at 12:15 pm GMT and the market participants expect quite strong increase in the number of newly employed people in the USA (excluding workers in the farming industry), The number expected is at the level of 189k people, while the last month’s number was at the level of 157k people. Yesterday’s weaker Personal Income and Personal Spending data did not satisfy the global investors, so today’s data are highly anticipated. If the forecast is right, today’s data will provide some reassurance on the economic outlook. No one will confuse today’s estimate as strong, but the market participants projection still points to moderate growth for the macro trend in the near future.
Let’s now take a look at the EUR/USD technical picture at the H4 timeframe. The market is still trending to the upside, so any worse than expected data might result in another spike up toward the next technical resistance at the level of 1.1846 and even above it, at the level of 1.1900. The momentum indicator is still pointing upward and holds above the fifty level, but on the bigger time frames, the market conditions are severely overbought. This is why any better than expected data might trigger a round of a sell-off towards the level of 1.1775 and 1.1711.
Market Snapshot: Crude Oil reverses
The price of Crude Oil had broken above the 78%Fibo at the level of $49.86 but then reversed back towards the last technical support at the level of $48.39. The trading conditions are reversing from the overbought trading zones as well and if the sell-off accelerate, then the next technical support is seen at the levels of $48.19, $47.53 and $47.30.
Market Snapshot: EUR/GBP trades in a narrow range
The price of EUR/GBP is trading inside of a narrow price zone, between the levels of 0.8898 – 0.8994, close to the recent swing highs. Any breakout below the level of 0.8898 might result in a sell-off towards the level of 0.8814, as the range will be broken. On the other hand, a breakout above the level of 0.8994 opens the road towards the next technical resistance at the level of 0.9024.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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