EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, after making several attempts to test the support level not far from the low at 1.0727, EURUSD has started a new rising impulse with the closest target at 76.0% fibo (1.1045). the key upside target is the high at 1.1147. If the price breaks the high, it may continue the mid-term rising tendency towards 38.2% at 1.1370.

In the H1 chart, the pair tested the low several times, thus forming a local support at 1.0766. The first two rising impulses reached 38.2% and 50.0% fibo respectively; while the current one – 61.8% fibo. Later, the price may continue growing to reach 76.0% fibo at 1.0958. However, a more significant local target will be the high at 1.1019.

USDJPY, “US Dollar vs. Japanese Yen”

In the H4 chart, after the convergence, the pair tested the resistance at 107.68 and then formed one more ascending structure to reach 23.6% fibo, which was followed by a new short-term pullback. By now, the pullback might have been over. In the future, the price is expected to test the resistance and break it. Later, the market may continue moving towards 38.2%, 50.0%, 61.8%, and 76.0% fibo at 108.16, 108.84, 109.51, and 110.33 respectively. The support is the low at 105.97.

As we can see in the H1 chart, USDJPY has finished the local pullback at 50.0% fibo; right now, it is forming a new rising structure. The closest upside target is the high at 107.77. After breaking it, the market may continue growing to reach 38.2% fibo at 108.16.

On Tuesday afternoon, GBPUSD is trying to keep the positive momentum that started yesterday.

The British Pound is growing against the USD on Tuesday. The current quote for the instrument is 1.2242.

In the morning, the United Kingdom published a series of reports on the labor market, which turned out to be pretty interesting. For a start, the Unemployment Rate in the country was only 3.9% in March, which is better than the February reading of 4.0% and much better than market expectations of 4.4%.

The Average Earnings Index added only 2.4% 3m/y after expanding by 2.8% 3m/y over the previous period and against the expected reading of +2.7% 3m/y. It’s quite logical that the labor market might have predicted economic woes during the quarantine period and, as a result, decided to hurl all effort into keeping as many jobs as possible instead of increasing salaries. It’s not only logical but also very farsightedly.

And then comes the worst part. The April Claimant Count Change report showed a skyrocketing number of 856.5K after being 5.4K in March (revised) and against the expected reading of 675K. Before April, the labor market seemed to be more stable than could be seen and would manage to stand against the global negative situation. Of course, it’s not millions of people, like in the USA, but for the United Kingdom, it’s still a very significant number of unemployed. The government will have to employ them, which may be quite difficult during the Brexit transition period.

No matter what, it can be clearly seen that the British economy handles the crisis much better than one could have imagined. This and positive external background support the Pound in its attempt to rise.

The major currency pair is regaining positions; investors are switching towards risks.

On Tuesday, EURUSD is feeling positive and trading upwards. The current quote for the instrument is 1.0942.

The American economy is supported from all angles. Last week, the Democratic Party piloted a bill in the House of Representatives to dole out an additional three trillion dollars for supporting the country’s economy and eliminate the consequences of the Covid-19 pandemic. It happened despite stubborn opposition of the Republicans. The bill includes 1 trillion USD for improving the situation in state and local authorities, while another 1.2 trillion will be intended for individuals, unemployed, and lessees.

As the House of Representatives commented on this initiative, “Not to act now is not only irresponsible in a humanitarian way, it is irresponsible because it’s only going to cost more”.

Market players are quite positive about this idea despite some doubts that the bill might not pass in the Senate and get it signed by Donald Trump. The key reason for this is that the Senate is controlled by Republicans and it will surely be a hell of a verbal fight.

At the same time, it’s pretty obvious that the country’s economy really needs additional support. According to Jerome Powell’s speech for the Senate, the American regulator intends to use all possible tools to support the system at the time of crisis.

Later today, Powell and the United States Secretary of the Treasury will hold an online conference in the Senate, during which they are planning to report on how the stimulus package of 2 trillion USD was spent.

EURUSD, “Euro vs US Dollar”

After completing the descending impulse at 1.0803 along with the correction towards 1.0825, EURUSD is expected to form a new descending impulse to break 1.0802. After that, the instrument may continue falling to reach 1.0777. And that’s just a half of another descending wave. The key downside target is at 1.0700.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has broken 1.2133 and is expected to continue falling inside the downtrend with the target at 1.2033. Possibly, today the pair may correct towards 1.2133. After that, the instrument may rebound from this level and then resume trading to reach the above-mentioned target.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB continues falling towards 72.50. Today, the pair may reach it and then start another correction towards 74.00. Later, the market may resume trading inside the downtrend with the target at 71.30.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is still consolidating around 107.03. Possibly, today the pair may resume falling to break 106.82 and then continue trading downwards with the target at 106.60.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the ascending impulse at 0.9735 along with the correction towards 0.9710, USDCHF is expected to grow to break 0.9735. Later, the market may continue trading upwards with the target at 0.9760.

AUDUSD, “Australian Dollar vs US Dollar”

After completing another descending impulse at 0.6404, AUDUSD has corrected towards 0.6444 to test it from below. According to the main scenario, the price may resume trading downwards with the short-term target at 0.6363.

BRENT

After breaking 32.15, Brent is still moving upwards to reach 34.74. After that, the instrument may form a new descending structure towards 32.15 and then start another growth with the short-term target at 36.80.

XAUUSD, “Gold vs US Dollar”

Gold is still trading upwards; it has already broken 1751.50 and may continue growing to reach 1773.17. Later, the market may start a new correction with the short-term target at 1751.50.

BTCUSD, “Bitcoin vs US Dollar”

BTCUSD continue growing. Possibly, today the pair may reach 10040.00 and then start another correction to reach 9600.00. After that, the instrument may resume trading upwards with the target at 10150.00.

S&P 500

The Index is trading to break 2879.2 to the upside. The main scenario implies that the price may continue trading upwards with the short-term target at 2935.0. Later, the market may correct towards 2879.2 and then form one more ascending structure to reach 2983.3.

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, EURUSD is moving below 3/8. In this case, the pair is expected to continue falling towards the support 0/8. However, this scenario may no longer be valid if the price breaks the resistance at 2/8 to the upside. After that, the instrument may continue growing to reach 3/8.

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD is trading at 3/8. The main scenario implies that the pair may rebound from this level and then correct towards the resistance at 4/8. However, this scenario may no longer be valid if the price breaks the support at 3/8 to the downside. After that, the instrument may continue falling to reach 2/8.

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue moving upwards to reach 4/8 from the H4 chart.

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1759.00; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1730.00 and then resume moving upwards to reach 1785.00. Another signal in favor of further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1685.00. In this case, the pair may continue falling towards 1645.00.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.2097; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.2165 and then resume moving downwards to reach 1.1945. Another signal in favor of further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.2275. In this case, the pair may continue growing towards 1.2365.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.5950; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 0.5975 and then resume moving downwards to reach 0.5485. Another signal in favor of further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 0.6020. In this case, the pair may continue growing towards 0.6105.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after rebounding from the support level, XAUUSD has reached its first target at 1750.00; right now, it is still moving upwards. At the moment, the pair may start a new correction to return to 1750.00 and then resume the ascending tendency. In this case, the upside target may be at 1777.00.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, NZDUSD is testing another support level; it has already formed a Harami reversal pattern. At the moment, the pair is reversing. The current situation implies that the price may form a slight correction and then resume falling. In this case, the downside target may be at 0.5900.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after forming a Hammer reversal pattern, GBPUSD is falling towards the next support area. At the moment, the pair is expected to reverse and form a slight correction, which may later be followed by a new descending impulse. In this case, the downside target may be at 1.2010. However, there is another scenario, which implies that the instrument may return to 1.2178.

XAUUSD, “Gold vs US Dollar”

As we can see in the daily chart, after a long test of 76.0% fibo and a breakout of the previous high, XAUUSD is forming a new ascending impulse towards its all-time high at 1920.66. However, attempting to reach and test the target, the instrument is expected to rebound and correct downwards.

In the H4 chart, after breaking the long-term consolidation range and finishing the descending correction towards 23.6% fibo at 1677.77, the pair has broken the high at 1747.77. The next upside targets may be inside the post-correctional extension area between 138.2% and 161.8% fibo at 1798.90 and 1858.60 respectively. The support is at 1677.77.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the daily chart, USDCHF continues the long-running correction between 38.2% and 61.8% fibo. Since the MACD lines are directed upwards, the price is expected to break the current correction to the upside. The first target will be 76.0% fibo at 0.9982 and then the fractal high at 1.0236.

In the H4 chart, the correctional channel is squeezing between the support and resistance levels at 0.9622 and 0.9764 respectively. If the price breaks the support, it may expand the correctional channel down to 61.8% fibo at 0.9453. Otherwise, the pair may start a new growth to reach the high at 0.9901.

Early in another trading week, USDJPY is barely moving; investors need some new ideas.

The Japanese Yen is rather inactive against the USD on Monday morning. The current quote for the instrument is 107.15.

It seems like investors lack new trading ideas at the beginning of another week of May. Obviously, they prefer to save strengths and wait for new catalysts.

The statistics published in the morning showed that the Japanese GDP managed to stand against external factors and lost only 0.9% q/q against the expected reading of -1.1% q/q. On YoY, the indicator plummeted by 3.4%.

The components of the report show that private consumption lost 0.7% against the expected reading of -1.6%. The private consumption amounts to 605 of the Japanese GDP. It’s quite apparent why people do not spend money: they don’t know what might happen in the future and aren’t sure whether the country’s economy is able to resist another sharp economic slowdown.

The Japanese Export and Import lost 6.0% q/q and 4.9% q/q respectively.

In general, these numbers might have been a good piece of news for the Japanese currency, because expectations were much worse. However, it seems like market players aren’t ready to make any movements right now.