Published on Friday data on the US was weak. US Capacity Utilization in May was 77.6% vs. forecast for 77.9%. US Industrial Predication was flat vs. forecast for a 0.3% rise. The correlation to the stock market which we observe is gradually becoming direct relation, the movements become codirectional. i.e. weak data on US growth reduces the risk appetites.
Today on the eurozone and the US the news is expected to be positive. The leaders of the Group of Eight (G8) are to begin a summit in Northern Ireland. The meeting will be held on Monday and Tuesday. The topics pertaining to stock markets will not be discussed.
Technically, the price managed to consolidate above the trend line of the price channel on the daily chart. On the 4H the upward trend has consolidated; the price above the indicator lines and the Marlin oscillator are in positive zone (however, expected divergence may be formed). The first bullish target is Fibonacci level on the H4 61.8% 1.5762. Downward movement is complicated by the accumulation of market orders in the range 1.5676/97. Thus, development of the bearish movement is possible after 1.5646, the low of June 13 is broken, in this case 1.5585, the level of Fibonacci 50%, is the target.