Trading plan for 26/06/2017:
The start of the week on the markets is quiet, which favors a day off from work in some Asian financial centers. The FX market is stable, EUR/USD is close to 1.1200, USD/JPY is trading around 110.30. Moderately bullish buyers are dominating the Asian stock markets. The market moving event is the rise of the oil price to the level of the mid-last week.
On Monday 26th of June, the event calendar is light in important economic releaes. Nevertheless, market participants will keep an eye on Ifo Sentiment data from Germany and during the US session, on Durable Goods Orders data.
EUR/USD analysis for 26/06/2017:
The Ifo Business Climate, Current Assesment, and Expectations data are scheduled for release at 08:00 am GMT. Market participants expect the sentiment to remain at the elevated levels. Germany's Ifo sentiment data are again on track to reaffirm the upbeat economic outlook. The Ifo Business Climate index is expected at the level of 114.7 points, a notch higher than the last month release of 114.6. The Ifo Current Assessment is expected at the level of 123.2, just as a month ago. On the other hand, Ifo Expectations index is expected to decline a notch, from 106.5 points to 106.4 points. In conclusion, the upturn in the German economy that began in 2013 is growing broader and gaining momentum, so today's update of survey data looks set to show that businesses are on board with that forecast.
Let's now take a look at the EUR/USD technical picture on the H4 time frame. The price stays under the golden trend line resistance and the technical resistance at the level of 1.1211. The overall move so far looks sideways, but the momentum indicator is above the fifty level. The technical supports at the levels of 1.1130, 1.1108, and 1.1075 are the most important for bulls as any violation of this levels will open the road towards the support at the level of 1.1022 and gap between the levels of 1.0820 and 1.0730. The volatility at the beginning of the week is low, so continuation of the sideways move is expeced unless a way worse or better than expected data will trigger sudden moves in either direction.
Market Snapshot: Crude Oil under important resistnace
The price of the Crude Oil has bounced from the technical support at the level of $42.01 and now is trading just below the important technical resistnace at the level of $43.74. The momenum indicator is slowly moving above the fifty level and stochastic is also bouncing from the oversold zone. Despite this positive signals, the move up does not look like an impressive rally, but more like a low volume test of the previous support, so sideways price action is expected here.
Market Snapshot: German DAX index covers both gaps
The German DAX index has covered two gaps on its way down the level of 12,675 points and now is bouncing from the oversold market conditions on the hourly time frame. The key zone to the upsdie is the gray area between the level of 12,806 - 12,822 and any breakout higher would indicate an immediate test of the recent high at the level of 12,953.
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