Daily Forex market review 13 July 2016
EUR/USD (Euro/dollar pair)
- In credit markets, yield of the 10-years' German government bonds is declining as compared to US and UK bonds. It makes investment in European assets more attractive.
- ADX on the daily and hourly charts shows the flat.
- RSI on the daily and hourly charts shows the flat, too.
- Recommendation: trade inside the flat 1,1010 -1,1110 (one ten ten – one eleven ten) (the bottom Bollinger band on the hourly chart).
GBP/USD (Pound/dollar)
- On credit markets, yield of the 10-years' UK government bonds is declining as compared to US and German bonds. It makes investment in British assets less attractive. It is impossible to ignore the press releases of many UK banks stating that on Thursday the Bank of England will make a step ahead and lower rate by 0.5% (zero dot five per cent).
- ADX on the daily and hourly charts shows the flat.
- RSI on the 4-hours and hourly charts is overbought and has formed a divergence, it is the downtrend.
- Recommendation:We should open Sell positions from 1.3315 (one thirty three fifteen) and 1.3355 (one thirty three fifty five) (area of the upper Bollinger band on the hourly chart) and take profit at 1,3235 (one thirty two thirty five) (area of the bottom Bollinger band on the hourly chart).
USD/JPY (Dollar/Japanese Yen)
- Stock markets are optimistic: US S&P500 index is storming new Highs, which contributes to growth of the currency pair. However, there is one factor which casts doubt on future growth of the stock markets - it is though moderate, but growing fear index VIX S&P500. This index is growing for the second day in a row, that signalsabout the downward correction.
- ADX on the daily and hourly charts shows the flat.
- RSI on the daily and hourly charts shows the flat, too.
- Recommendation: trade inside the flat 103,50 (one hundred and three dot fifty) -105,00 (one hundred and five sharply) (the range of Bollinger bands on the hourly chart).
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