GBP/USD turned to downside

Last week the GBP/USD was seen uptrending and marked a monthly high at 1.3030. But start of the new week shifted the mood and the pair dropped to 1.2930. The Pound is hardly influenced by the bad macro figures as the Markit manufacturing PMI for June showed less than expected data. Beside this the expectations for BOE’s upcoming rate hike are decreasing, but it will become more clear this Tuesday when inflation report is due along with the construction PMI for June.

Technically speaking the four-hour time frame is showing some bearishness. The price has crossed to below the 20-day SMA, while the 200-day SMA is staying flat and is acting as dynamic support.RSI has sharply turned to south and stochastic is located within extreme oversold territory and is displaying strong bearish momentum.

Having in mind that last week the bulls coundn’t again conquer the psychological 1.30 mark, the short-term the sentiment remains bearish.

AUD/NZD meets resistance at 23.6% Fibo

The hawkish RBNZ stance strengthened the New Zealand dollar along with the good economic figures and on this basis the AUD/NZD is seen in downtrend since the middle of March. 

Last week the pair fell to 1.0385, a level that has not been visited since early February.

On the four-hour time frame the 200-day SMA is showing strong bearishness, while the 20-day SMA has turned to north. RSI is located around its mid-line, but has lost directional strength. Stochastic is displaying bearish signs but however now is navigating slightly below its mid-lines.

Strong resistance is seen at 23.6% Fibonacci retracement of latest March to June slope to downwards, currently located at 1.0525. In case of breaking it to above, the pair might visit higher levels.

Looking to downwards, key support is the 1.0375 area (last week’s lows). In case bears are tempted to test it, the pair most like will drop to parity.

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Volatile week for Chinese indices

Asian indices closed the week mixed, having  Chinese stocks higher and Japanese almost unchanged. Meanwhile oil is staying below $43 per barrel, even though it stopped depreciating.

US indices ended in a minimal negative territory after trading on Friday with plus and fell in the last minutes.

Investors are beginning to worry about the state of the US economy  as the situation is not so good as described by Janet Yelton, and that inflation targets may not be as fast as the Fed expects.

Or in other words, we may nit witness a third increase of interest rates by the end of the year.

The Chinese indices had a volatile week, supported by MSCI's decision to include local stocks in the indices. But afterwards they marked a decline as a result of the news that the government has strengthened the control and regulation of the largest companies with international business. Chinese regulators ordered Weibo Corp and another two Internet media companies to stop broadcasting video and audio, accusing them of operating without a license and disseminating opinions that are potentially harmful to the country's social stability.

EUR/USD closed higher

After a relatively bad week, the EUR/USD pair closed higher, close to 1.12 handle. On Friday session the pair gained around 50 pips and erased the losses. 

Technically speaking the four hour time frame is showing some vital signs for the bulls. RSI has moved above its mid-lines, but has lost directional strength. Stochastic is located within extreme overbought territory and is displaying strong upward strength.

Short term outlook has switched to bullish with first bull’s target seen at 1.1210 (200-day SMA).

EUR/USD Slightly up today

Recently EUR/USD is seen in consolidation within a relatively wide range between June’s high and  low, respectively at 1.13 and 1.1118.
Today the pair is slightly up, having marked around 0.10% higher with current market price 1.1143. In term of marco news, this week is not offering much except US home sales figures for May, that will be released later on today. In case of positive numbers, the pair could take interesting move, but more interesting now is DXY’s and yields’s performance which are much more now supporting the greenback.

Despite the intraday uplifted mood, technically speaking the bears are ruling the game.

On the four-hour time frame the price is developing around the 200-day SMA but below the 20-day and 100-day SMAs. RSI has retreated from oversold area and is nearing its mid-line. Stochastic is uptrending, but remains below its mid-line. 

Immediate support is seen at the critical 1.1110 level and in case of breaking it, additional declines are expected. 

Cable slumped due to political turmoils

Cable is trading today at lowest levels, even lower since the snap election notice from 18th if April. Ahead of Wall Street opening the GBP/USD recovered some of the losses and is currently trading at 1.2621. 

BOE's Governor Mark Carney speech set under huge selling pressure the Pound, keeping dovish mood on interest rate amid the Brexit drama. 

Meanwhile the negotiations between the Northern Irish DUP  and Prime Minister May's Conservatives are not developing in an the expected way.  

On the other hand, the US dollar is seen stronger having DXY up 0.29% today, which additionally makes the Pound suffer.

Technically speaking, the four-four time frame is showing strong bearish signs. The price has crossed to below the 20-day SMA, which has turned to bearish side. RSI has retreated from its mid-line and has declined to negative territory. Stochastic is located within extreme oversold area and is displaying lack of momentum. 

It seems that the Cable is gathering bearish momentum before starting correction.