20 May, 2016
Despite falling by over one-percent, gold prices managed to recover in the near term, but the upside bias is increasingly weakening while 1250 support level is back into focus. The dollar is looking a tad weaker after the recent gains, and the markets could be in for a modest pullback. EURUSD will be looking to bounce off the 1.120 handle for a move back to 1.13 in the near term while GBPUSD looks weaker at 1.4635
EURUSD Daily Analysis
EURUSD (1.120): EURUSD's declines were again limited yesterday, but price action fell to the lower end of the support range at 1.120. The small range formed yesterday near the support could result in a possible near term pullback off this support level with EURUSD moving back close to 1.130. On the 4-hour chart, price action's declines confirmed with that of the bearish flag pattern. With prices trading close to the outer median line, a break above 1.12170 could see a move back to 1.130 followed by 1.1380.
USDJPY Daily Analysis
USDJPY (110.14): USDJPY has been capped by the 50 day EMA at 110 region and a pullback is likely towards 108 levels in the near term. To the upside, prices can potentially move towards 110.67 level of resistance. Support has been established at 109.733 - 109.356 and only a break below this support will see a move towards 108. The momentum in USDJPY is showing signs of easing and a near term correction to 108 - 107.5 is very likely as a result.
GBPUSD Daily Analysis
GBPUSD (1.459): GBPUSD closed with a spinning top yesterday after rallying to 1.4635. The price action marks the retest of this resistance level that was previously tested in early May. A decline off the 1.4635 - 1.4743 could see GBPUSD fall back to the lower support at 1.44250 with the next main support at 1.431 - 1.430. Only a confirmed break with a bullish candlestick above 1.4635 will clear the way for more upside in GBPUSD.
Gold Daily Analysis
XAUUSD (1254): Gold prices fell sharply yesterday but managed to recover near the lows of 1243, which was also supported by the 50 day EMA. 1264 is now the level to watch for as any upside gains could be limited here, but at the same time, a break above 1264 could again keep gold biased to the upside. In the near term, the H4 chart shows gold will likely fall back to 1250 handle for support. As long as this support holds, gold prices could remain range bound.
The common currency which had fallen sharply over the past few weeks and was eventually seen hovering above the support level of 1.1540 level was seen...
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...