Month: May 2021

BRENT

In the H4 chart, Brent is consolidating between 3/8 and 5/8; right now, it is rebounding from 3/8. In this case, the pair is expected to resume growing towards the resistance at 5/8. However, this scenario may no longer be valid if the price breaks 3/8 to the downside. After that, the instrument may reverse downwards and reach the support at 2/8.

As we can see in the M15 chart, the downside line of the VoltyChannel indicator is pretty far away from the price, that’s why the pair may resume the ascending tendency only after rebounding from 3/8 from the H4 chart.

S&P 500

In the H4 chart, the S&P Index is trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to break 7/8 and continue growing towards the resistance at 8/8. However, this scenario may no longer be valid if the price breaks 6/8 to the downside. After that, the instrument may move downwards to reach the support at 5/8.

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue the ascending tendency.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after forming several reversal patterns during the pullback, including Harami, USDCAD may reverse and start a new decline towards 1.1990. After testing this level, the price may break it and continue its descending tendency. However, an alternative scenario implies that the asset may correct to reach the resistance level at 1.2180 before further decline.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD has formed several reversal patterns, such as Hammer, not far from the support level. At the moment, the asset is reversing in favor of the ascending tendency. In this case, the upside target may be the resistance area at 0.7840. At the same time, an opposite scenario implies that the price may fall towards the support level at 0.7725, rebound from it, and then resume trading upwards.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, the asset is testing the support area once again, where it has formed a Doji reversal pattern. At the moment, USDCHF may reverse and start a new pullback. In this case, the correctional target may be the resistance level at 0.9010. Still, there might be an alternative scenario, according to which the asset may fall to reach 0.8930 without reversing and correcting.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 108.69; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 108.90 and then resume moving downwards to reach 107.80. Another signal in favor of a further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 109.35. In this case, the pair may continue growing towards 110.85. To confirm further decline, the asset must break the support level and fix below 108.05, thus completing a Double Top reversal pattern.

CADCHF, “Canadian Dollar vs Swiss Franc”

CADCHF is trading at 0.7422; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.7445 and then resume moving downwards to reach 0.7345. Another signal in favor of a further downtrend will be a rebound from the neckline of a Head & Shoulders reversal pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.7485. In this case, the pair may continue growing towards 0.7575.

GBPJPY, “Great Britain Pound vs Japanese Yen”

GBPJPY is trading at 154.31; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 153.95 and then resume moving upwards to reach 156.55. Another signal in favor of a further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 152.05. In this case, the pair may continue falling towards 151.15.

USDJPY confirms its descending tendency; the Yen remains strong.

The Japanese Yen continues strengthening against the USD despite the deflation threat. The current quote for the instrument is 108.75.

The statistics published today showed that the Core CPI in Japan was -0.1% y/y in April, the same as the month before, although it was expected to be -0.2% y/y.

However, another report is much worse – the CPI showed -0.4% y/y in April after being -0.2% y/y in March. On MoM, the situation is also rather sad: -0.4% against 0.2% over the same period of time.

The components of the report show that the key contributors to the decline were food prices, which are dragging the entire indicator down.

The preliminary report on the Manufacturing PMI showed 52.5 points in April after being 53.6 points the month before against the expected reading of 53.0 points. It’s no surprise, the indicator just confirms deflation – consumers are inactive and prevent businesses from ramping up production and spending extra. Everyone is “on standby” and it doesn’t help prices to grow.

The Yen is barely responding to the statistics and its current strengthening is mostly caused by the weak American currency.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, a divergence on MACD made AUDUSD start a new descending correction that reached 50.0% fibo but was later followed by another growth. At the moment, the pair is moving within a narrow consolidation range. Possibly, the asset may break this range to the downside and continue the mid-term correctional downtrend towards 61.8% and 76.0% fibo at 0.7669 and 0.7618 respectively. If the pair breaks the low at 0.7532, the next target will be 50.0% fibo at 0.7500. the resistance is the high at 0.7891.

The H1 chart of UADUSD shows a more detailed structure of the current consolidation. The pair has already reached 61.8% fibo and may later continue growing towards 76.0% fibo at 0.7842, a breakout of which, in its turn, may lead to a further uptrend to reach the high. The most probable scenario for the nearest future implies a decline towards the low and 61.8% fibo at 0.7688 and 0.7669 respectively.

USDCAD, “US Dollar vs Canadian Dollar”

In the H4 chart, the pair is trading close to the fractal at 1.2061. At the same time, there is a convergence on MACD, which made the price start a new correctional uptrend to reach 23.6%, 38.2%, 50.0%, and 61.8% fibo at 1.2165, 1.2258, 1.2334, and 1.2410 respectively. The support is the low at 1.2013.

As we can see in the H1 chart, after completing the rising wave, USDCAD is moving downwards. So far, the price is stuck between the low and 23.6% fibo at 1.2013 and 1.2165 respectively.

EURUSD, “Euro vs US Dollar”

After completing the ascending wave at 1.2242 and forming a new consolidation range around 1.2191, EURUSD has broken it to the downside. Possibly, the pair may start another decline with the short-term target at 1.2143 and then correct to return to 1.2191. After that, the instrument may resume falling to reach 1.2137.

GBPUSD, “Great Britain Pound vs US Dollar”

After reaching the predicted downside target at 1.4155 and then forming a new consolidation range there, GBPUSD has broken it to the downside to reach this short-term downside target at 1.4100. Possibly, the pair may start a new growth to test 1.4155 from below and then resume falling with the target at 1.4088.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is still consolidating around 73.83 without any particular direction; it has already expanded the range down to 73.58. Today, the pair may test 73.85 from below and then resume trading within the downtrend with the short-term target at 73.30.

USDJPY, “US Dollar vs Japanese Yen”

After completing the descending wave at 108.55 along with the ascending impulse towards 109.29, USDJPY is correcting to reach 108.91. Later, the market may form one more ascending structure with the short-term target at 109.60.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the ascending wave at 0.9014 and forming a new consolidation range there, USDCHF has broken it to the upside; right now, it is still moving upwards to reach 0.9060. After that, the instrument may correct to return to 0.9014 and then resume growing with the target at 0.9070.

AUDUSD, “Australian Dollar vs US Dollar”

After completing the descending wave at 0.7744 and forming a new consolidation range there, AUDUSD has broken it to the downside and may later continue falling to break 0.7690. Later, the market may continue falling with the target at 0.7581.

BRENT

After finishing the descending wave at 65.50, Brent is correcting towards 67.44 and may later form one more descending structure to finish the correction at 64.81. After that, the instrument may resume trading upwards with the target at 71.00.

XAUUSD, “Gold vs US Dollar”

Gold has completed the ascending wave at 1889.00. Possibly, today the metal may correct towards 1854.30 and then form one more ascending structure to reach 1900.50. Later, the market may start another correction with the target at 1790.00.

S&P 500

The S&P index has finished the descending wave at 4077.8. Today, the asset may consolidate around this level. If later the price breaks this range to the downside, the market may resume falling with the short-term target at 3980.0 and then start another correction to return to 4077.7. After that, the instrument may resume trading downwards with the key target at 3920.0.

USDCHF, “US Dollar vs Swiss Franc”

In the H4 chart, after breaking 0/8, USDCH is trading above it. In this case, the price is expected to continue growing to reach the closest resistance at 1/8. Still, this scenario may no longer be valid if the price break 0/8 to the downside. After that, the instrument may fall towards the support at -1/8.

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue the ascending tendency.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, XAUUSD has reached the “overbought area”. In this case, the price is expected to rebound from 8/8 and resume falling to reach the support at 7/8. However, this scenario may no longer be valid if the price breaks 8/8 to the upside. After that, the instrument may reverse and grow towards the resistance at +1/8.

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

Brent

The daily chart shows a rebound from the high at 71.07 and 76.0% fibo. Possibly, the asset is currently forming a new descending correction towards 23.6%, 38.2%, 50.0%, and 61.8% fibo at 58.00, 49.94, 43.46, and 36.93 respectively. However, a breakout of the high may lead to a further uptrend to reach the fractal high at 87.09.

As we can see in the H4 chart, a local divergence on MACD made the asset start a new correctional decline, which has already reached 50.0% fibo and may later continue towards 61.8% and 76.0% fibo at 64.09 and 62.75 respectively. the key downside target is the local low and the support at 60.46, a breakout of which may lead to a further mid-term downtrend.

Dow Jones

As we can see in the H4 chart, Dow Jones is trading inside the post-correctional extension area between 138.2% and 161.8% fibo at 33941.0 and 36620.0 respectively. However, the asset is currently correcting downwards after a divergence on MACD. The key resistance is the high at 35102.0. The current situation may hint at a possible downtrend towards 23.6%, 38.2%, and 50.0% fibo at 32970.0, 31651.0, and 30587.0 respectively.

In the H1 chart, a local divergence on MACD made the asset complete the rising wave and start a new correctional decline, which has already reached 76.0% fibo. After a short-term pullback, the index may continue falling towards the local support at 33295.0, a breakout of which will lead to a further downtrend to reach the post-correctional extension area between 138.2% and 161.8% fibo at 32840.0 and 32552.0 respectively. The local resistance is at 34497.0.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the instrument continues growing. After forming several reversal patterns, such as Harami, close to the resistance level, XAUUSD has reversed but may later resume trading upwards. In this case, the upside target may be the resistance area at 1890.00. At the same time, an opposite scenario implies that the price may continue the pullback to reach 1855.50 before resuming its growth.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the asset is about to complete another correction. By now, NZDUSD has formed several reversal patterns, such as Hammer, close to the support level. The pattern materialization target may be the resistance area at 0.7250. Later, the price may test the area, break it, and continue moving upwards. However, an alternative scenario implies that the price may return to 0.7140 before resuming its ascending tendency.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is completing the correction within the ascending tendency. By now, GBPUSD has formed several reversal patterns, such as Harami, not far from the support area. At the moment, the pair may reverse in favor of further growth. In this case, the next upside target after the pullback may be at 1.4250. Later, the instrument may break the resistance level and boost its ascending tendency. Still, there might be an alternative scenario, according to which the asset may correct towards 1.4055 before resuming the ascending tendency.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.7185; 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 0.7205 and then resume moving downwards to reach 0.7005. Another signal in favor of a further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 0.7250. In this case, the pair may continue growing towards 0.7345. To confirm further decline, the asset must break the support level and fix below 0.7120 to complete a Head & Shoulders reversal pattern.

XAUUSD, “Gold vs US Dollar”

XAUUSD is trading at 1873.00; 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 1850.00 and then resume moving upwards to reach 1935.00. Another signal in favor of a 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 1800.00. In this case, the pair may continue falling towards 1765.00.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.2106; 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 1.2135 and then resume moving downwards to reach 1.1885. Another signal in favor of a 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 1.2215. In this case, the pair may continue growing towards 1.2305.