US June CPI inflation report was slightly softer than expected. Negative news about trade war is back again. US President Trump said on Thursday that UK PM May's plans for a soft Brexit would likely end hopes of a trade deal with the US. Oil had a bad week and started a correction phase. BoC raised its rate by 25 bp as widely expected.
Still we are trading within a symmetrical triangle, however, risk is skewed to the downside. If market closed below 1.1520/1.1500 the price could target 1.1320 and 1.1250.
Same as EURUSD, more downside risk is on the cards. Major support at 1.3050, a close below this mark would open the door for 1.30 and it could even target 1.2950/1.2880.
Investors have been busy in taking the profit off the table. Oil, WIT, failed to maintain the price above 72s levels. It is likley that the bearish sentiment would continue and the price would target 67.20/66.50.
Despite trade war risks, Dow jones still trades within the rising channel. As long as the market stays above the 245,00 pivotal levels, a re-test for 25,200 resistance level is highly expected.
Moderately bullish but risks remain skewed to the downside. However, the bullish momentum is accumulating. A weekly close above 15,500 would open the door for the DAX to touch the 15.800 mark.