Daily Forecast - 23 May 2017
AUDUSD Spot
AUDUSD holding resistance at 7470/80 as expected to target 7465 then first support at 7452/48 but the best support for today is at 7430/25 & could mark a low for the day. However the daily trend is negative so eventually we could resume that trend. If you try longs use stops below 7410 but be aware that a break lower is a sell signal targeting 7390 & 7365 before the 7330/26 low.
A break above 7500 however is a short term buy signal despite overbought conditions & sees 7490/85 act as support targeting 7535/45 & perhaps as far as 7580/90.
EURUSD Spot
EURUSD severely overbought so the question is can we close 2 days above 1.1210. I think risks are to the downside & failure to hold above 1.1200 should be seen as short term negative. First support at 1.1165/60 but a break below 1.1150 signals a move towards strong support at 1.1110/00. Try longs for a potential quick bounce, with stops below 1.1070.
Holding above 1.1210 risks a retest of 1.1260/63 highs. A sustained break above 1.1265 however targets 1.1299/10...the high last seen on the day of the US election in November.
USDJPY Spot
USDJPY bears appear to remain in control as we fail to test 111.80/90 & dip back below 111.20/10, targeting 110.75/70 & support at 110.55/50. A break below 110.20 then targets 109.90 & important 200 day moving average & 6 month trend line support at 109.80/70. This is the best chance of a low for the week as we head in to oversold conditions. We also have a gap to fill at 109.48 so longs need stops below 109.40.
Above first resistance at 111.20/30 targets only minor resistance at 111.80/90 then 4.5 month trend line resistance at 112.10/20. There is a good chance this area will mark a high for the day but shorts need stops above 112.60.
GBPUSD Spot
GBPUSD bulls managed a weekly above the psychological 1.3000 level on Friday but obviously need to beat the 1.3045/47 high last week to build on the gains targeting 1.3055/60 & 1.3085/90 before 11 month trend line resistance at 1.3110/20 & the main challenge for bulls this week.
Minor support at 1.2990/80 before the best support for today at 1.2940/30. Try longs with stops below 1.2890. A break lower however risks a slide to good support at 1.2830/20. Try longs with stops below 1.2790.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.