Gold eyes 1290, EURUSD looks to 1.149 as NFP looms

6 May, 2016

April jobs report will be the market mover today and could potentially dictate the short-term direction in prices. While gold, EURUSD and USDJPY have all recovered from their recent strong moves, a short-term pullback is likely on the cards as gold continues to remain bullish and could eye 1290 while EURUSD sitting at the 1.14 key support could see a rally back to 1.1490.

EURUSD Daily Analysis

EURUSD (1.14): The continuation following the reversal near 1.16 has sent the EURUSD to 1.1405 lows right near the support level of 1.14 - 1.1380. Resistance is seen near 1.15195 - 1.15975, which could see a bit of a retest if the declines manage to hold at the current support level. On the 1-hour chart, we see a bullish divergence, which when combined with the price at support, signals a move to the upside. However, this could potentially form a median line failure, which will eventually see EURUSD fall back lower. A break below 1.140 - 1.1380 could see EURUSD push lower to 1.1217 - 1.1143.

USDJPY Daily Analysis

USDJPY (107.1): USDJPY has managed to push higher and is now closer to the resistance at 108 - 107.85. If price action doesn't rally higher to test this resistance, we could potentially expect to see near-term declines on the card, as seen by the hidden divergence on the 4-hour chart. USDJPY could fall back within 106.58 and 105.70 levels ahead of further upside. A potential break above 108 resistance could pave the way for USDJPY to test 110.67 - 111.31 resistance.

GBPUSD Daily Analysis

GBPUSD (1.44): GBPUSD closed with a doji pattern yesterday and today's price action could be decisive. A bullish close could see GBPUSD move towards the previous April 28th highs above 1.4635 or a bearish close below the doji low could see the support at 1.4425 being broken for a test to 1.420. On the 4-hour chart, with the brief test to 1.474 resistance, GBPUSD eventually broke down below 1.4635 - 1.45845 minor support/resistance and could potentially move higher to test this broken support for resistance ahead of a decline to 1.4312 - 1.430. A bearish close on GBPUSD today below the doji's low could signal further continuation to the downside towards 1.420 and eventually to 1.415 - 1.41265.

Gold Daily Analysis

XAUUSD (1278): Gold prices have eased back on their momentum with the past three candlesticks closing in a small bodied pattern, This could potentially indicate a risky move in the near term. The 4-hour chart shows a possible bullish pennant continuation pattern which could spell further upside in Gold, but subject to price action clearing above 1291.41 - 1290 level which is likely to be tested for resistance. A bullish breakout here could see gold position itself for a stronger breakout potentially breaking above the 1300 handle. Alternately, failure to clear the resistance at 1290 - 1291 could see a failed pattern, that could open up the downside risks for a dip to 1262.65 - 1258.25.


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: