Mthokozisi Mpofu
Knars Capital
The chart below shows EUR/USD which has been in a downtrend since the 06th of January 2021 which we have labeled WXY which ended around 1.1700. Since the lows on the 31st of March 2021, we have pushed higher in an impulsive manner to current highs at 1.21500.
The impulsive move higher ended with an ending diagonal pattern. A swift move lower marked the end of the current lower degree uptrend and the start of a corrective move.
We believe there is still more room to the upside once we correct lower down to the yellow zone as our ideal target level. Once we are in the yellow zone we will be looking for confirming price action that the correction is over and we can take long positions. If we break 1.17000 that would invalidate our bullish count and our alternative long-term bearish count would then come into effect.
Key News events to look out for this week: Wednesday 5th of May EU Economic Forecasts, Friday 7th of May ECB President Lagarde Speaks.
Res: 1.21500; 1.22415; 1.24000
Supp: 1.19276; 1.18768; 1.17000
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
Recommended Content
Editors’ Picks
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. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
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.
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.
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.