Dollar on track to close May with strong gains

30 May, 2016

With just one more trading day to go, the US dollar is posed to close on a bullish note in the month of May following a strong and steady decline since January this year. Further upside is likely to continue and will keep the momentum going to the upside. Gold prices have weakened significantly with prices now trading near the $1200 an ounce psychological level which could keep prices supported to the upside in the near term but overall, the bullish rally is clearly fading.

EURUSD Daily Analysis

EURUSD (1.110): EURUSD has posted a steady decline for the past four weekly sessions, closing Friday at 1.1112. On the 4-hour chart, EURUSD is likely to post a retracement with the current lows in price not confirmed by the Stochastics oscillator. Price action needs to close above 1.1143, in order to validate a retracement which could see a correction to 1.138, which is pending for a retest of resistance confirmation. To the downside, continued momentum could see EURUSD fall further towards 1.110 support.

USDJPY Daily Analysis

USDJPY (110.9): USDJPY was bullish on Friday closing at 110.34, but price action closed a few pips above the 50 period EMA. The ranging price action is likely to continue with a risk of a brief test to 111.0 resistance. The 4-hour chart shows USDJPY caught within the range of 110.31 - 110.672 resistance and 109.35 support. Further upside is likely only on a break above 111.31 resistance high, while to the downside, 108 support will be tested if the current support at 109.35 breaks.

GBPUSD Daily Analysis

GBPUSD (1.462): GBPUSD closed bearish on Friday following a brief test to 1.4743. Support at 1.4425 remains a likely level for GBPUSD to test but the downside is limited from the current levels. The 4-hour chart shows price trading below 1.4668 - 1.4647. Any rallies are likely to be capped near this resistance, which could see an eventual decline towards lower support at 1.4461 - 1.44450.

Gold Daily Analysis

XAUUSD (1203): Gold prices cleared the 1230 support on Friday and closed the 4-hour session in a hammer pattern. Prices slipped down to 1203 in early trading today with the psychological barrier seen at 1200, likely to hold the declines. Resistance at 1230 - 1225 will be the initial level that could cap the rallies, but a break above this level could see a move back to 1250 and eventually to 1262 - 1258 main support level that was broken and which could now be tested for resistance.


Source link  
Market Reaction As Higher Tariffs Kick In

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...

USD Strengthens On ADP Payrolls

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...

BoC Holds Rates Steady

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...


Markets Open To A Quiet Trading Day

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...

Dollar Muted As Equities Rally Ease Off

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....

Market Risk Appetite Wanes

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared...


USD retreats as factory orders weaken

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive...

Unemployment Steady, USD Firms

The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period...

Jobless Claims Fall To Record Lows

The US dollar was seen recovering from the losses from the day before. The weekly jobless claims report dropped by 10,000, falling to 202,000. This was the...

  


Share it on:   or