5 May, 2015
Guest post by John Benjamin at Orbex
EURUSD Daily Pivots
EURUSD has been gradually drifting lower since yesterday after failing to make any further gains after hitting a peak at 1.1268. Price action was hovering near 1.117 levels and looks to hold as resistance for the moment, which could see EURUSD decline towards 1.1 support level. The upper trend line of the price channel could act as a short term support for prices, which if fails could see a decline. To the upside, a break above 1.117 and a test of support at this level is needed to make way for further gains.
USDJPY Daily Pivots
USDJPY has hit the resistance at 120.26 as noted in yesterday's analysis. We see multiple rejections at this level through 120.036. A break lower will see price retest 119.65 which could then see another attempt to the upside. A close above 120.26 and a test of support is needed in order to aim for 120.78 level. To the downside, if price fails to hold at 119.65, USDJPY could yet again turn bearish and test the previous lows near 119.
GBPUSD Daily Pivots
GBPUSD broke out from the rising price channel but looks to be consolidating near 1.511 levels. We could expect to see a bounce back to the break out at 1.528 as a retest. Only a close above the previous high will make way for further gains but resistance comes at 1.553 levels. To the downside, support comes at 1.50 followed by 1.496.
The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...
The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...
Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...
The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...
A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...
A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...
The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...
Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...
Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...