Free Forex Trading Signal July 2016 (EURUSD, Gold)
- ■ Market: Forex, Metals
- ■ Assets: EURUSD, Gold
- ■ Forecast: Gold Uptrend Continuation (↑), EURUSD to Range
General Outlook
The global financial markets can still feel the vibrations of the Brexit earthquake. The panic of the first few days is gone but there is still high uncertainty regarding what happens next in Europe. The political turmoil is expected to last for quite some time as Poland and other Eurozone members have started to doubt the France/Germany leadership, and as Scotland will probably demand a new referendum regarding its independence. In the current environment, any forecast is particularly risky. Nevertheless, going long on gold seems a good idea whatever happens.
Our Previous Trading Signal
In our previous Trading Signal (late April 2016), we forecasted EURUSD to range without clear direction and commodity currencies to move lower in May 2016. We said “May 2016 is expected to be a corrective month for commodity currencies. If you want to go long on commodity currencies it seems wise to wait for a correction in May”. Actually, a correction in the price of commodity currencies did happen in May, and it was quite intense (6-9%). At this moment, we are optimistic regarding the performance of commodity currencies.
EURUSD Technical Analysis
Everyone is seeking stability nowadays and EURUSD is a good tool for stabilizing financial markets, at least to some extent. EURUSD is expected to continue ranging during summer 2016.
■ Resistance (↑) 1.126-1.127 | 1.137 | 1.142 | 1.149-1.150 | 1.160-1.162
■ Support (↓) 1.0828 | 1.070-1.074 | 1.050-1.051 | 1.042
Chart: EURSUD Broader Range (D1, RSI, MACD)