27 May, 2016
The markets are likely to remain flat in the run up to the US GDP second revision followed by Janet Yellen's speech a couple of hours later. With the hawkish rhetoric gaining momentum, Yellen's speech could be important as investors await for further clues on the rate hike which could be as early as June or July.
EURUSD Daily Analysis
EURUSD (1.118): EURUSD closed bullish yesterday but failure to close above 1.1219 high from two days ago is likely to keep price action biased to either direction. On the 4-hour chart, the price has broken out from the falling price channel, but failure to rise above 1.1217 could see EURUSD range within the price zone of 1.1217 - 1.1143. Only a bullish close above 1.1217 will see further upside in EURUSD towards 1.138 while to the downside, a close below 1.1143 could see prices fall towards 1.110 round number barrier.
USDJPY Daily Analysis
USDJPY (109.9): USDJPY closed bearish yesterday with price action trading flat for nearly 7 consecutive days. Resistance is capped by the 50 day EMA, which could see price rally towards 110.67 if the level breaks. Support at 109.73 - 109.35 has held the declines strongly so far limiting the downside. Only a break down below 109.35 will validate a decline to 108 - 107.36 while to the upside 110.67 - 111.31 remains a likely price zone that could be targeted.
GBPUSD Daily Analysis
GBPUSD (1.467): GBPUSD remains trading within the range of 1.4743 - 1.4635. The upside is limited unless there is a strong bullish close above 1.4743 which will then clear the way for a move to 1.48. To the downside, price action could see a possible decline to 1.4425 if the current support at 1.4635 fails. On the 4-hour chart, the support at 1.4635 is likely to be tested ahead of what could be a further rally, but on a close above 1.4712.
Gold Daily Analysis
XAUUSD (1218): Gold prices resumed their bearish momentum yesterday with prices briefly testing 1231.50 before giving up the intraday gains and closing bearish after 1225 support failed. Price action is currently testing the lows at 1214. A break below this level could see a move towards 1210 and 1200 eventually, but the Stochastics shows a bullish divergence taking shape. A retracement above 1230 could see a potential move to 1250 in the near term.
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...