2018-05-02
Recently, the EUR/USD pair has been trading downwards. The price tested the level of 1.1981. According to the M30 time – frame, I found a potential end of the bullish corrective phase in the backgorund (bearish flag), which is a sign that buying looks risky. My advice is to watch for a potential breakout of a bearish flag to confirm further downward continuation. The downward target is set at the price of 1.1930. The short- and mid-term trend is bearish. Watch for selling opportunities.
Resistance levels:
R1: 1.2057
R2: 1.2123
R3: 1.2160
Support levels:
S1: 1.1955
S2: 1.1915
S3: 1.1850
Trading recommendations for today: watch for potential selling opportunities.
Fundamental Analysis of USD/JPY for May 2, 2018
2018-05-02
USD/JPY has been quite impulsive with bullish gains recently which led the price to proceed higher above 109.20 without a retracement along the way. Ahead of the upcoming high impact economic reports from the US this week, including NFP and Unemployment Rate reports, certain gains on the USD side indicate further momentum in the coming days. Today, US ADP Non-Farm Employment Change report is going to be published which is expected to decrease to 200k from the previous figure of 241k and Crude Oil Inventories report is also expected to decrease to 1.0M from the previous figure of 2.2M.
On the other hand, JPY Monetary Base report was published today with a decrease to 7.8% from the previous value of 9.1% which is expected to increase to 9.2% and Consumer Confidence report was also published with a decrease to 43.6 from the previous figure of 44.3 which was expected to increase to 44.6.
As for the current scenario, JPY has failed to provide positive economic reports results today to gain some momentum over the USD impulsive pressure. US economic reports are also expected to have negative readings. If the US presents better economic report today, USD is likely to extend its gains in the coming days, whereas JPY may still struggle to stop the impulsive bullish pressure along the way.
Now let us look at the technical view. The price has been quite impulsive with the gains yesterday having a retest off the 109.20 support level. The price has been trying to push hard lower today but currently the bears are being rejected along the way whereas bulls are trying to maintain their momentum. As for the current structure, the price is expected to push towards 110.00 in the coming days whereas breaking above 110.00 with a daily close will lead to further impulsive bullish pressure with a target towards 112.00 resistance area in the future. As the price remains above 108.50 area, the bullish bias is expected to continue further.
Fundamental Analysis of USD/CAD for May 2, 2018
2018-05-02
USD/CAD has been stuck inside the corrective range between 1.28 to 1.2950 area from where no definite trend pressure is being observed. USD and CAD, both currencies have been struggling with the economic reports recently which lead certain indecision and volatility in the market persists currently. Recently CAD GDP report was published with an increase to 0.4% from the previous negative value of -0.1% which was expected to be at 0.3%. The positive GDP report did help CAD to regain its momentum against USD but was not sufficient to establish a definite trend in the market.
Ahead of the high impact economic reports to be published on the USD side this Friday, certain correction and volatility are quite expected but the mixed forecast of the economic reports are expected to confuse market sentiment along the way. Today there is no economic report or event on the CAD side to impact the market momentum but tomorrow CAD Trade Balance report is going to be published which is expected to increase to -2.3B from the previous negative figure of -2.7B.
On the other hand, today USD ADP Non-Farm Employment Change report is going to be published which is expected to decrease to 200k from the previous figure of 241k and Crude Oil Inventories report is also expected to decrease to 1.0M from the previous figure of 2.2M.
To sum up, USD economic reports to be published today are expected to have a certain impact on the upcoming price action and trend momentum in this pair whereas the definite trend is expected to be set after NFP, Average Hourly Earnings and Unemployment Rate report of USD is published before the weekly close this week. As of the current scenario, a break from this indecision and corrective structure is needed before the market sets a definite trend in the future whereas USD is expected to have an upper hand.
Now let us look at the technical view. The price is currently residing at the edge of the corrective structure support of 1.28 from where no definite trend pressure is being observed. There is no divergence being formed in the market for which we need to wait for the price to break above or below this range between 1.28 to 1.2950 area. As the price remains above 1.28 with a daily close, further bullish momentum is expected in this pair.
Analysis of Gold for May 02, 2018
2018-05-02
Recently, Gold has been trading upawards. The price tested the level of $1,311.50. Anyway, according to the M30 time – frame, I found a potential bearish flag in progress, which is a sign that buying looks risky. I also found a rejection of the resistance at the price of $1,310.00, which is another sign of weakness. My advice is to watch for a potential breakout of the bearish flag to confirm a further downward continuation. The downward target is set at the price of $1,301.50. If there is no breakout of the bearish flag, Gold can still go higher and potentially test the level of $1,313.20.
Resistance levels:
R1: $1,312.95
R2: $1,321.95
R3: $1,327.50
Support levels:
S1: $1,298.40
S2: $1,292.82
S3: $1,283.83
Trading recommendations for today: watch for potential selling opportunities.
Technical analysis of USD/CHF for May 02, 2018
2018-05-02
The USD/CHF pair continues to move upwards from the level of 0.9886. Yesterday, the pair rose from the level of 0.9886 to a top around 0.9969. Today, the first resistance level is seen at 1.0011 followed by 1.0043, while daily support 1 is seen at 0.9886 (78.6% Fibonacci retracement). According to the previous events, the USD/CHF pair is still moving between the levels of 0.9923 and 1.0043; so we expect a range of 120 pips. Furthermore, if the trend is able to break out through the first resistance level at 1.0011, we should see the pair climbing towards the next target of 0.9923. Therefore, buy above the level of 0.9923 with the first target at 1.0011 in order to test the daily resistance 1 and further to 1.0043. Also, it might be noted that the level of 1.0043 is a good place to take profit because it will form a new double top on the H1 chart. On the other hand, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9886, a further decline to 0.9774 can occur which would indicate a bearish market.Technical analysis of NZD/USD for May 02, 2018
2018-05-02
Overview:Pivot: 0.7049.
The NZD/USD pair faced resistance at the level of 0.7089, while minor resistance is seen at 0.7049. Support is found at the levels of 0.6955 and 0.6906. Pivot point has already been set at the level of 0.7049. Equally important, the NZD/USD pair is still moving around the key level at 0.7049, which represents a daily pivot in the H1 time frame at the moment. Yesterday, the NZD/USD pair continued moving downwards from the level of 0.7049. The pair fell to the bottom around 0.7010 from the level of 0.7049. In consequence, the NZD/USD pair broke support, which turned into resistance at the level of 0.7010. The level of 0.7089 is expected to act as the major support today. We expect the NZD/USD pair to continue moving in the bullish trend towards the target levels of 0.6955 and 0.6906. On the uptrend: If the pair fails to pass through the level of 0.7010, the market will indicate a bullish opportunity above the level of 0.7010. So, the market will rise further to 0.7049 and 0.7089 to return to the daily resistance. Moreover, a breakout of that target will move the pair further upwards to 0.7089 in order to form the double top.
Daily analysis of USD/CHF for May 2, 2018
2018-05-02
Daily analysis of USD/CHF for May 2, 2018
USD/CHF
This pair has gone upwards this week, and this seems to be the beginning of a great bullish momentum in the market (given the stamina in USD). Following the current pause in the bullish movement, a bullish journey will resume. The next targets are the resistance level at 1.0000, which is a major resistance level (a psychological level).
There is a Bullish Confirmation Pattern in the chart, which portends further bullish movement in favor of buyers. Short trades are not currently recommended. The EMA 11 is above the EMA 56.Daily analysis of USD/JPY for May 2, 2018
2018-05-02
USD/JPY
There is a Bullish Confirmation Pattern in the USD/JPY 4-hour chart. The market is now above the demand level at 109.50 and it could reach the supply level at 110.00. Further northwards movement is anticipated before the reversal in the market, which may also be visible on other JPY pairs.
Owing to the current bullish effort in the market, the price could go further upwards, but that would be a temporary thing owing to the expected reversal in the market. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50.
Daily analysis of EUR/JPY for May 2, 2018
2018-05-02
EUR/JPY
There is now a bearish bias on the EUR/JPY cross, especially in the short-term. The current "sell" signal is ongoing and the price could drop further to test the demand zones at 131.50 and 131.00. One factor partly responsible for this downwards move is the weakness in EUR, which is ongoing.
There is a Bearish Confirmation Pattern in the market. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. Further bearish movement is a possibility which may enable the price to reach the demand zones at 131.50 and 131.00.
Technical analysis of NZD/USD for May 02, 2018
2018-05-02
All our downside targets which we predicted in the previous analysis have been hit. NZD/USD is still under pressure. The pair accelerated on the downside following the recent bearish breakout of its key horizontal level at 0.7030, which now acts as a resistance role. The falling 50-period moving average should also push the prices lower towards 0.6960. In addition, the relative strength index is bearish, calling for a further decline. To sum up, as long as 0.7035 is not surpassed, likely decline to 0.6990 and 0.6960 in extension.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point, which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 0.7050, 0.7075, and 0.7120
Support levels: 0.6990, 0.6960, and 0.6920.
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