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Daily Forex market review 3 August 2016
EUR/USD (Euro/dollar pair)
- Today the United States will publish the reports on employment from ADP and business activity in the field of services from ISM. Taking into account the fast economic growth, both indicators may be better than the consensus forecast, which is positive for US dollar.
- ADX indicator on the daily and 4-hours charts shapes the uptrend; whereas on the hourly chart it shows the downtrend.
- RSI indicator on the 4-hours chart is in the overboughtness area and has formed a divergence there, which means the downtrend.
- Recommendation: trade inside the flat 1.1150 -1.1210 (one dot eleven fifty - one twelve ten) .
The next pair - GBP/USD (Pound/dollar)
- In the afternoon, we will probably see the negative release on crude oil reserves from the US Department of Energy. It will put the oil under pressure and in this regard, we can see the demand in the US currency, as the cost of commodity is denominated in US dollars.
- ADX indicator on the daily and 4-hours charts shows the flat; whereas on the hourly chart it shows the downtrend.
- RSI indicator on the daily, 4-hours and hourly charts shows the flat
- Recommendation: Open Sell trades at 1,3365 (one thirty three sixty five) and take profit at 1,3265 (one thirty two sixty five).
And finally, USD/JPY (Dollar/Japanese Yen)
- An outflow of capital from risky assets supported the Japanese yen as a funding currency. The day before, on US stock market, the index of "fear" VIX S&P500 grew by 7.4% (seven dot four per cent), which means the downtrend.
- ADX Indicator on the monthly and weekly charts shows the downtrend; on the daily, 4-hours and hourly charts it shows the flat
- RSI indicator on the daily and hourly charts shows the flat.
- Recommendation: Open Sell trades at 101.30 (one hundred and one dot thirty) and take profit at 100.60 (one hundred sharply dot sixty)