Dzhafer Medzhakhed
Chifbaw LLC
Recommendations:
Risky: Sell the EURUSD at 1.3075, SL 1.3125, targets 1.3015, 1.2900, 1.2790, 1.23(!).
Very risky: buy the AUDUSD at 0.9485, SL 0.9445, targets 0.9550, 0.9600, 0.97.
Analysis:
After reaching very high levels around 169x, the SP500 started correcting back towards 1600-1650. The market is psychologically ready for a healthy 5%-10% correction that should lead us to below the area in between 1550-1600 where we would book some profits. In the meantime, the Australian dollar rebounded on the 0.96 level that we suggested, before getting down again.
We would consider another risky long entry in case the Australian dollar falls during the first days of the coming week below 0.95. Regarding the yen, it is now very difficult to find entry points.
We continue to be bearish on EURUSD. The major head and shoulder pattern has not yet been triggered and we still might revisit the area of 1.30-1.31 next week. We would consider a short entry close to the trend line resistance from the last tops at 1.37x and 1.32x, which would be in between 1.3050 and 1.31. A possible area of entry could be the 150-DMA at 1.3075 as well as the 61.8% Fibonacci retrace from the last top at 1.32x to the last bottom at 1.279x. A bearish golden cross is also now in place.
SP500 Weekly chart
EURUSD Daily chart 1
EURUSD Daily Chart 2
Recommended Content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.