Short-term pullbacks on the horizon

25 April, 2016

Following Friday's strong price action, the markets opened on a weaker note this morning with price gaps across the board. A potential pullback is likely to be taking place ahead of further continuation of the short-term trends. The daily economic calendar is light for the most part today with only the US new home sales data likely to see some reaction in the markets.

EURUSD Daily Analysis

EURUSD (1.12): EURUSD gapped lower at today's open and the price action shows a potential for a pull back. Resistance at 1.13 and support at 1.12 is likely to keep EURUSD ranging between these levels in the near term. On the 4-hour chart, prices broke out to the downside following the consolidation within the triangle pattern. A retest could see EURUSD move back to 1.130 region ahead of a decline to 1.120 support and 1.113 - 1.1105 lower support levels.

USDJPY Daily Analysis

USDJPY (111.2): USDJPY is looking to retrace Friday's strong gains after prices closed near the 111.4 levels. A pullback could see USDJPY retest the 109 - 108.5 levels which mark the breakout of the daily chart. On the 4-hour timeframe, price action is seen posting a strong reversal near the 111.7 - 111.5 level of support confirming a pull back in USDJPY in the near term.

GBPUSD Daily Analysis

GBPUSD (1.44): GBPUSD gapped higher in today's session following Friday's bullish close. The declines are likely to be limited in the near term, but if prices close below the 1.443 - 1.4425 resistance, GBPUSD could potentially fall towards 1.4263 - 1.424 lower support. The bias remains to the upside so long as GBPUSD does not break below the immediate support level. In the near term, GBPUSD could potentially range sideways within 1.443 - 1.4425 resistance and 1.4263 - 1.4247 support levels.

Gold Daily Analysis

XAUUSD (1234): Gold prices closed on a bearish note following a pin bar on Thursday. Prices are, however, supported near the 1230 - 1225 level indicating a modest pull back. On the 4-hour chart, we can see the consolidation taking place within a broadening wedge pattern. A Pullback could see Gold rally and retest the 1243 - 1250 level to establish resistance ahead of further declines. A break below current support at 1230 - 1225 could see Gold fall towards 1214 - 1210 lower support.


Source link  
Inflation in Mexico set to rise on higher fuel prices

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...

Regional manufacturing indexes point to a stronger ISM manufacturing PMI

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...

USDJPY Trims Gains. Support Seen At 104 - 103

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...


Dollar Supported, Heading Into FOMC

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...

EURUSD Remains Supported Above 1.110

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...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

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...


GBPUSD could test 1.32 on the descending wedge

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...

EURUSD eyes 1.07 on a breakout below 1.10

Risk aversion resumed after the US returned from holiday with investor sentiment turning sour after a third real estate fund suspended trading after an increase in investor redemptions. Sterling slumped as expected, fueled by BoE lowering capital buffer requirements...

Gold hits 1350 as expected

Gold prices rallied early today testing the 1350 resistance as noted over the past few days. Further upside is likely to continue if price clears the 1350 handle which could keep gold testing 1371.90...

  


Share: