As early as on Tuesday it was already easy to predict the trend of this asset – it was obvious, that the price for Gold will drop. One of the decisive factor, which caused gold to fall on 24 dollars (2,400 points), to the level of 1273.50, was a positive report from the eurozone by ECB, that indicated a positive dynamic in terms of inflation, GDP growth, lending. Right now, we see bullish pattern “Double top”, so we can expect regaining of the upward movement.
Please note, this asset reached the local maximum at 2.636, and now, there is high probability of a reverse to local minimal.
Last week this asset showed staggering results, namely a sharp jump from the level of 120 to 142 dollars per share, more than that, it will continue its rapid growth after a possible short retracement.
This growth is associated with favorable forecasts of billionaire Jack Ma sales.
Sales growth is expected around 49% in 2017.
WorldWide Developers Conference was held from 05/06/2017 until June 9, 2016, and there Apple gave new information on the Iphone 8, and also presented the HomePod - acoustic smart system aimed at centralizing of smart devices control in the apartment weather, road traffic, etc. and the most important - quality acoustics.
Anyway, in long-term prospect, we can expect stock of this company to grow.
The most important event of this week was the parliamentary elections in Great Britain.
The victory of the Conservative Party was expected, but everything went not according to the scenario: Labour Party, headed by Jeremy Corbyn gained its votes.
Prior to the election, Theresa May 's party had 330 seats. At the end of the election, this number dropped to 319 seats.
At the same time, J. Corbin’s party received additional mandates, thus expanding to 261 seats. This brought confusion and chaos to the Parliament, as no one got majority of 326 seats. Current situation is called "Hung Parliament", that is, "a suspended parliament", which means the absence of the ruling party.
Due to that, GBP lost its position. Thus, GBP\USD lost 343 pips and dropped from the level of 1.2979 to the level of 1.2636.
The most probable scenario – continuation of the movement down to the level 1.2560 and further to the levels 1.24 and even 1.2150.
Previous week was eventful sand that influenced currency market. Let’s have a look at European currency and make a forecast of it’s further movement.
On Wednesday, ECB made a statement that they plan to cut inflation forecast for the current year and it means the continuation of the QE program, due to that euro dropped and continued to fall on Thursday, breaking through 1.12 level.
Friday’s data was disappointing as well – German trade balance was lower than expected and high unemployment rate in Italy – pushed European currency even lower. Pair EUR/USD touched lowest point within June and reached 1.1170 level.
At that, we foresee short retracement and after that – continuation of downward movement to the level 1.11 or even 1.10.