Currency pair EUR / USD continued to recover. The dollar has fallen moderately compared to most counter currency before this meeting of the Federal Reserve. The two-day meeting will start today and will finish tomorrow. There will be new growth projections and a press conference after the meeting. Following decision was taken, will only be released a statement in which the decision will be explained. During this day there are no significant economic reports in the euro zone. EUR/USD after a big decline the last week continued to move at 1.10 area. H4 charts show the weekly bearish trend line. The price has consolidated at area 1.09455 support level. It is confirmation double bottom. The price has stabilized and has formed strong support level. It can be expected a trend correction on a daily basis.
H1 charts confirmed rising trend line after the price has rejected from 23.6 Fibonacci levels at 1.09730. It can see the double bottom in this area. The price moved from this level to 61.8 Fibonacci level and test a new resistance level at 1.10230. The price also rejected from upper Bollinger bands, oscillates between middle and upper Bollinger Bands. Very soon price will be broken a new resistance level at 1.10650. It will be tested the previous high peak on 21st July. It can see in the picture that the price has stabilized trend channel and range trading level 1.09450-1.10230 in the last two trading days. It can see that the RSI is in above 75 and shows upside momentum, while MACD is in oversold zone. The price has rejected again from this level and continued to rise. By my opinion, this is a buying signal at 1.10150 with TP order 1.10650 and SL order 1.09750. It is expected to find support below 1.0950 and resistance above 1.1075.
The pound rose against other major currencies after data released which showed that the number of approved mortgages in the UK fell in June, more than expected. Forex pair GBP / USD is up to the moment of writing the text recorded on top of 1.3151 but subsequently consolidated at 1.3122. The number of mortgages approved by the Association of British bankers fell in June to 40,100 from 41800 in the previous month, while economists predicted a fall to 40200. It can see in the image below 20MA crosses over 50MA signal for selling positions, 1.31500 with targets , 1.31 the first support level and 1.30650 in extension. The pair could find the first resistance level at 1.32. The technical indicators are bearish. It can be expected that the price could break 1.30500. M30 charts show that the price has tested this area today.
The price of crude oil again dropped below $45 per barrel under the influence of excessive supply the global market. The price of crude oil last week continued to fall as a result of concerns about excessive supply global market price of crude oil, continued to decline and fell during the night below 43 dollars for the first time since May this year. It can see the downside prevails and selling positions below 43 with targets 42.35 and 41.70 in extension. The price of crude oil is capped by the negative trend line. It can see that the price rejected from the middle Bollinger Bands and has broken lower Bollinger Bands. It has confirmed a decline in prices. It was tested the first support level today and it could drop further below $42 per barrel.
The gold price has continued to decline and remained near a three-week minimum under the influence of the strengthening dollar, which rose to the highest level in the last four months as a result of refurbished expectations that the Federal Reserve until the end of the year to increase interest rates. Demand for this precious metal continues to support the expansive monetary policy of cheap money that apply the biggest central banks. It can see in the image below that support base at 1312 has formed and has allowed temporary stabilization. The price will be tested the next resistance level at 1326 Fibonacci 61.8. It is expected that the price of gold could touch the first support level at 1317 an ounce and the first resistance level is at 1331 an ounce. Very soon can be tested 1326 an ounce.
Asian stocks were mixed. Japanese Nikkei 225 index fell 1.40%, Hang Seng index in Hong Kong rose 1.12%, while Australia’s S & P / ASX 200 climbed 0.07 %.European stocks were generally weak. Euro Stoxx 50 fell 0.42%, France’s CAC 40 rose 0.68%, German’s DAX 30 was lower by 0.37%, while London’s FTSE 100 rose 0.10%.Stock prices on Wall Street have fallen during the cautious trading ahead of the upcoming meetings of the central banks to be held the next day and could affect the markets. Dow Jones dropped 0.42%, the S & P 500 was down 0.30%, while the NASDAQ was lower by 0.05%. Investors are hoping for the leading central banks soon to implement new stimulus measures, due to the slowdown in the world’s largest economies and the possible consequences of the decision of Great Britain to leave the European Union. In the markets there’s caution because during this week the presidents of several major US companies, including Apple, Facebook, and Alphabet, publish quarterly results. US stocks futures prices continued to rise during the morning after the previous correction. The fall in crude oil prices adversely affected the share prices of energy companies which resulted in the decline in US indices. The excellent economic results published in the United States have had a positive impact on sentiment in the market which has resulted in the growth of S & P 500 index, which during the European trading and early US trading achieved a total increase of 0.85%. It can see a reverse trend S&P 500. H1 charts show buying signal when 20MA crosses over 50MA. My recommendation would be buying positions at 2161 with targets 2172 as a target as a weekly resistance area. It can see that MACD is neutral while the RSI shows buying signal.