Source: PaxForex Premium Analytics Portal, Fundamental Insight
US Personal Income for June is predicted to increase by 0.4% monthly and Personal Spending by 0.3% monthly. Forex traders can compare this to Personal Income for May, which rose by 0.5% monthly, and Personal Spending by 0.2% monthly. The PCE Deflator for June is predicted to expand by 0.1% monthly and 2.5% annualized. Forex traders can compare this to the PCE Deflator for May, which was flat at 0.0% monthly and rose by 2.6% annualized. The PCE Core Deflator for June is predicted to expand by 0.2% monthly and 2.5% annualized. Forex traders can compare this to the PCE Core Deflator for May, which increased by 0.1% monthly and 2.6% annualized.
The final US Michigan Consumer Sentiment for July is predicted at 66.0. Forex traders can compare this to US Michigan Consumer Confidence for June, reported at 68.2. Final Current Conditions for July are expected at 64.1, and Final Expectations are predicted at 67.2. Forex traders can compare this to Current Conditions for June, reported at 65.9, and Expectations, reported at 69.6. Final US Michigan Inflation Expectations for July are predicted at 2.9%, and Final US Michigan 5-year Inflation Expectations at 2.9%. Forex traders can compare this to Final US Michigan Inflation Expectations for June, reported at 3.0%, and Final US Michigan 5-Year Inflation Expectations at 3.0%.
The forecast for the Dow Jones 30 remains cautiously bearish after this equity index retreated from all-time highs during the start of earnings season. The Dow Jones 30 now trades below its flat Tenkan-sen and below its upward-drifting Kijun-sen. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud move higher in a narrow band and are vulnerable to a bearish crossover with rising selling pressure. Traders should also monitor the CCI following a double breakdown from extreme overbought territory and below zero. This technical indicator has plenty of downside potential to lead price action lower. Can bears maintain control over the Dow Jones 30 and pressure this equity index into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the Dow Jones 30 Index remain inside the or breakdown below the 40,000 to 40,245 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 40.135
- Take Profit Zone: 38.645 – 39.020
- Stop Loss Level: 40.635
Should price action for the Dow Jones 30 Index break out above 40,245, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 40.635
- Take Profit Zone: 41.050 – 41.290
- Stop Loss Level: 40.245
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