Activity in manufacturing and services sector in the Euro zone slowed in May
According to data released today, the manufacturing and services sector in the Euro zone fell in May to 52.9 points compared to April with 53 points.
Analysts had expected a rise to the level of 53.2 points.
Any reading of more than 50 points indicates expansion in economic activity.
USD/CHF
The main trend of the pair is an uptrend, after it crossed above a descending line, of the previous downtrend, as we can see on a daily chart:
What next?
We are waiting that the pair to make a technical correction down, to re-test the area that was broken on the way up.
This area should be around the levels of 0.9800 – 0.9750.
From there we will be looking for a bullish pattern with a bullish divergence, this will be the signal for us to enter with another wave on the way up.
For Forex traders:
Buy between the levels of : 0.9800 – 0.9750
Stop loss point : 1.0000
Take profit point : 0.9700
For Binary options traders:
A call option between the levels of : 0.9800 – 0.9750.
Expiry time : The end of May.
Greece approved new austerity measures
The Greek parliament agreed on a series of new austerity measures, designed to ensure the receiving continuation of billions of Euros as part of its international aid package for the country.
These measures include a raise of 1% of the vat, raising taxes on coffee, alcohol, gasoline and other products, as well as new rules relating to bank loans.
A sharp decline in exports from Japan
According to Japanese Finance Ministry data, the Japanese exports fell in April for a seventh month, following a slowdown in global growth and the strengthening of the yen.
The exports fell by 10.1% compared with the same month last year.
US Unemployment claims
The US Labor Department said that the number of US initial jobless claims fell last week to 278 thousand compared with to 294 thousand in the previous week.
Economists had forecast a sharp fall of more than 270 thousand claims.
Silver
The main trend of the Silver is an uptrend as we can see on a daily chart.
During the last 3 weeks, there is a decline, part of a technical correction, and the price is moving towards a support area of 16.00.
On 4 hours chart there is a diagonal support line who can meet with the price around the 16.00 level, if the technical correction will make its way to test this level.
What are we waiting for?
First we are waiting for the price of the silver to continue the technical correction, until it will stops around the level of 16.00.
Then we will be waiting for a bullish pattern to appear, from a daily chart and up to an hour chart.
After a strong bullish pattern will appear, we will be able to enter with a trade which will continue with the upward trend.
For Forex traders:
Buy between the levels of : 16.00 – 16.10.
Stop loss point : 15.80.
Take profit point : 18.00.
For Binary options traders:
A call option between the levels of : 16.00 – 16.10.
Expiry time : The end of June.
The rating agency Moody’s lowered its US growth forecast
Moody’s economists lowered the growth forecast for the US economy in 2016 from 2.3% to 2%.
Moody’s languished her decision due to a decreased in demands to business investments.
Moody’s also lowered her growth forecast for the developed economies in 2016 to 1.7%, 0.2% below the previous forecast.
The UK retail sales beat the early forecasts
The quantity of goods sold in stores and on the Internet rose in April by 1.3%, compared to March and against Bloomberg survey which predicted an increase of 0.6%.
The increase came after two months of declines in retail sales.
EUR/JPY
The main trend of the pair is a downtrend but on 4 hours chart we can try an enter to an intra-day trade, a part of a technical correction up.
As seen on the chart, there is a diagonal support line which supporting the pair 4 times in the last 10 days.
The last 4 hours candle was a bullish one which crossed up the moving average 13, with that, the average of the RSI is above his 50 line.
For Forex traders:
Buy between the levels of : 123.50 – 123.70
Stop loss point : 123.00
Take profit point : 125.50.
For Binary options traders:
A call option between the levels of : 123.50 – 123.70
Expiry time : The end of May 19.
The US dollar at the height of seven weeks
The dollar index climbed to a record seven weeks after the protocol of the meeting of the Federal Reserve which released yesterday showed that the central bank is about to raise the interest rates as early as June.
In May the US dollar rose compared to all 16 major currencies around the world.
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