Matt Simpson, CFTe, MSTA
CityIndex
UP NEXT:
GBP: Despite most attention being on Scottish Referendum today's CPI could bring further pressure to increase interest rates, regardless of the outcome. Taking into account that UK is only 2 of G7 nations to not have their growth forecast cut by OECD then we may see buying pressure if CPI comes in strongly above expectations.
EUR: German ZEW is a 'nice to know' indicator but I doubt it will make EURUSD move too much going into FED/FOMC meetings tomorrow.
CAD: The text to Poloz speech is released 15 mins before the listed time. BoE is in a neutral stance (as it has been for over 1 year) but any hawkish comments may see USDCAD edge lower from the highs. A more neutral or Dovish speech should help USDCAD up towards bullish targets mentioned below.
TECHNICAL ANALYSIS:
USDCAD: Potential Swing low has formed
Whilst USDCAD hovers near the recent highs it does still allow for another leg higher. H4 is close to completing a Bullish Engulfing candle on higher volume to suggest a swing low has established above the weekly pivot / 1.103 support zone.
Initial target is the 1.11 high then 1.1159.
We may see an initial run up to MR2 but if we see weakness around these levels it highlights potential for a lower high to form (and an eventual double/triple top).
A break below Weekly pivot confirms change in trend and targets 1.095.
USDJPY: Favours buy-the-dip strategy
Similar to USDCAD, there is a potential swing low near the recent highs. Due to the multi-timeframe momentum being bullish we have to assume another high until bearish divergences appear on multiple timeframes.
- As long as we remain above 106.95 the target remains 107.80
- A break below 106.95 targets 106.1
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.