Shanghai Composite loses 0.8% and Hang Seng falls by 1.0%. In Tokyo, Nikkei225 exchange drops by 0.9%. Trade wars remain at the center of the investors' attention, the closer we are to the end of the week, when the US is going to officially announce the start of duties on Chinese goods.
Among the major currencies, the worst is AUD, which dropped to USD 0.7370. However, USD/JPY jumped to 110.60 in the last hour. Also in EUR/USD, before the European session, the demand roused and revised the rate just under 1.17.
On Thursday, 5th of July, the event calendar is busy in important data releases. During the London session, Germany will post Factory Orders data, Switzerland will issue CPI data and Eurozone will present Retail PMI data. Later on, during the US session, the traders will get familiar with ADP Non-Farm Employment Change data, Unemployment Claims and Continuing Claims data, ISM Non-Manufacturing data, and at the end of the trading day with FOMC Meeting Minutes. Seems like very active US session is ahead.
The EUR/USD analysis for 05/07/2018:
EUR may find some support in the recent financial media reports. Based on sources from the ECB, some decision-makers in the bank express dissatisfaction that investors do not discount the chances of interest rate hikes earlier than in December 2019. In their opinion, the move is also possible in September or October.
Let's now take a look at the EUR/USD technical picture on the H4 time frame. The bulls are again trying to break out above the level of 1.1690 and head towards the 61% Fibo at the level of 1.1720. The technical resistance zone between the levels of 1.1720 - 1.1740 will be tough to break, but in a case of a breakout higher, the next target for bulls is seen at the level of 1.1850. The immediate support is seen at the level of 1.1638, 1.1630, and the last one at 1.1590. The momentum remains positive and strong, so the chances for a move upward are still high.