US data came out mixed as treasury yields came out low while GDP revision came better then expected beating -0.8 % forecast with -0.7 % actual result. Housing investments showed 5.0 % vs prior 1.3 % while US corp profits came out with -8.7 % vs -1.6 % previous reading.
Fundamentally GDP is the strongest release and it came better as we can see but technically the pair is trapped inside a bullish consolidation triangle. Standing close to resistance we can spot 2 important levels. 124.10 being a resistance and 123.60 being a support. Breakout of 124.10 and close above is needed for further up towards 124.45 and 124.90. If the pair manages to sustain bullish momentum we will see it.
If the pair doesn’t break 124.10 we could see a drop towards 123.60 where the breakout of 123.60 targets 123.40- trend line confluence and 122.95.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.