Month: May 2021

AUDUSD, “Australian Dollar vs US Dollar”

In the H4 chart, AUDUSD is heading towards the “overbought area”. In this case, the price is expected to test 8/8, rebound from it, and then resume moving downwards to reach the support at 6/8. However, this scenario may be canceled if the price breaks 8/8 to the upside. After that, the instrument may continue growing towards the resistance at +1/8.

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 descending tendency only after rebounding from 8/8 from the H4 chart.

NZDUSD, “New Zealand Dollar vs US Dollar”

In the H4 chart, NZDUSD is trading above the 200-day Moving Average to indicate an ascending tendency. In this case, the price is expected to test 7/8, break it, and then continue growing to reach the resistance at 8/8. However, this scenario may no longer be valid if the price breaks 6/8 to the downside. In this case, the instrument may fall towards 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 its growth.

GBPUSD continues rallying and updating its local highs.

The British Pound is feeling pretty fine against the USD on Tuesday morning as the instrument continues rising. The current quote for the instrument is 1.4175.

Apart from domestic news, the Pound is supported by the weakness of the American currency.

The statistics published today showed that the Unemployment Rate in the country dropped to 4.8% in March after being 4.9% the month before, although it wasn’t expected to change. It’s a good signal for the country’s economy and currency.

The Claimant Count Change showed -15.1K in April after being 10.1K in the previous month. It might be caused by the fact that businesses are slowly getting back to their normal work due to the removal of social restrictions in the United Kingdom. The vaccination campaign is bringing results and the lockdown is smoothing.

According to one of the BoE representatives, a quick recovery of the British economy should be confused with booms that sometimes take place in the economic system. It happens mostly due to low interest rates, which provide steady growth in case there are conditions for that, and expectations that consumers will soon return to their pre-covid lifestyle.

Temporarily high inflation, which may be caused by a rebound in the GDP, won’t be a problem for the British regulator – it will do its best to revise the monetary policy to make inflation return to its target level, which is 2%.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7802; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7810 and then resume moving downwards to reach 0.7585. Another signal in favor of a further downtrend will be a rebound from the resistance level. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.7855. In this case, the pair may continue growing towards 0.7945. To confirm further decline, the asset must break the support level and fix below 0.7655, thus completing a Head & Shoulders reversal pattern.

GBPJPY, “Great Britain Pound vs Japanese Yen”

GBPJPY is trading at 154.71; 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 153.65 and then resume moving upwards to reach 157.05. 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 151.45. In this case, the pair may continue falling towards 150.65.

NZDCHF, “New Zealand Dollar vs Swiss Franc”

NZDCHF is trading at 0.6518; 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 0.6535 and then resume moving downwards to reach 0.6425. 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 0.6565. In this case, the pair may continue growing towards 0.6645.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after forming several reversal patterns, including Hammer, not far from the support level, USDCAD may reverse and start a new correction towards 1.2180. After testing this level, the price may rebound and resume its descending tendency. However, an alternative scenario implies that the asset may fall to reach the next support level at 1.1990 without reversing and correcting.

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 0.7755, 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. At the moment, after forming several reversal patterns, such as Harami, not far from the resistance area, USDCHF has reversed to resume trading downwards. In this case, the downside target may be the support level at 0.8950. Still, there might be an alternative scenario, according to which the asset may correct to reach 0.9035 before a further decline.

EURUSD rose pretty much and is currently consolidating in anticipation of the news.

The major currency pair was actively growing earlier and is currently consolidating not far from its reached targets. The current quote for the instrument is 1.2129.

So, the statistics on the American retail sales weren’t in favor of the “greenback” and helped other traded currencies to strengthen. In April, the indicator showed no changes if compared with the March reading. At the same time, the revised March data says that the indicator added 10.7% m/m. The expected reading for April was 1.0% m/m and could indicate some kind of a balance but the reality turned out to be worse.

It’s quite clear that the March reading was caused by consumer stimulus checks from the government to support the country’s economy. Still, the April decline turned out to be much worse than expected but May and June may show another surge in consumer interest after the opening of borders and many sectors of the country’s economy. As soon as the economic system starts actively getting back to its pre-covid state, consumers will start spending more.

The Industrial Production in the USA added 0.7% m/m in April after skyrocketing by 2.4% m/m the month before. Another report, the Capacity Utilization Rate, showed 74.9% after being 74.4% in the previous month.

However, there was one more unpleasant surprise for the USD on Friday. A preliminary report on the Consumer Sentiment from the University of Michigan showed 82.8 points in May after being 88.3 points in April and against the expected reading of 90.2 points. It means that the population is really worried about increases in prices for goods and services because inflation expectations significantly boosted. This bothers Americans despite deferred demand and quite high levels of personal savings.

EURUSD, “Euro vs US Dollar”

After completing the correctional wave at 1.2148, EURUSD is consolidating below this level. Possibly, the pair may break this range to the downside, the market may form a new descending structure to break 1.2080 and then continue trading within the downtrend with the short-term target at 1.2007.

GBPUSD, “Great Britain Pound vs US Dollar”

After finishing the correction at 1.4109, GBPUSD is expected to start a new decline to reach or even break 1.3996. Later, the market may continue falling with the short-term target at 1.3882.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is consolidating around 73.83. Today, the pair may break the range to the downside and continue trading within the downtrend with the short-term target at 73.00.

USDJPY, “US Dollar vs Japanese Yen”

After completing the correction at 10.32, USDJPY is expected to form a new consolidation range above this level. Later, the market may resume trading upwards with the short-term target at 110.29.

USDCHF, “US Dollar vs Swiss Franc”

After finishing the correction at 0.9012, USDCHF is consolidating above this level. Possibly, the pair may break the range to the upside and reach 0.9005. After that, the instrument may break this level as well and continue growing with the short-term target at 0.9173.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has completed the correction at 0.7788; right now, it is forming a new descending structure to break 0.7696. Later, the market may continue falling with the short-term at 0.7611.

BRENT

After finishing the ascending wave at 68.00 and then forming a new consolidation range around this level, Brent has broken it to the upside and may later continue trading within the uptrend towards 69.45. After that, the instrument may correct to return to 68.00 and then form one more ascending structure with the target at 70.44.

XAUUSD, “Gold vs US Dollar”

After breaking 1839.28 to the upside, Gold is still growing with the short-term target at 1869.40. Later, the market may correct to return to 1839/28 and then resume trading upwards to reach 1900.00.

S&P 500

The S&P index is correcting towards 4233.2 and may later form a new descending structure to break 4050.0. After that, the instrument may continue trading downwards with the short-term target at 3930.0.

EURUSD, “Euro vs US Dollar”

In the H4 chart, EURUSD 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 then continue growing to reach the resistance at 8/8. Still, this scenario may no longer be valid if the price breaks 6/8 to the downside. After that, the instrument may correct towards 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 its growth to reach 8/8 from the H4 chart.

GBPUSD, “Great Britain Pound vs US Dollar”

In the H4 chart, GBPUSD is also trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the asset is expected to break 7/8 and then continue growing towards the resistance at +1/8. However, this scenario may no longer be valid if the price breaks 6/8 to the downside. After that, the instrument may continue the correction 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.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the instrument continues growing. After forming several reversal patterns, such as Engulfing, close to the support level, XAUUSD is reversing. In this case, the upside target may be the resistance area at 1875.00. At the same time, an opposite scenario implies that the price may continue the pullback to reach 1830.00 before resuming its growth.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the correction continues. 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 0.7300. Later, the price may test the area, break from it, and continue moving upwards. However, an alternative scenario implies that the price may return to 0.7190 before resuming its ascending tendency.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is trading sideways within the ascending tendency. By now, GBPUSD has formed several reversal patterns, such as Harami, not far from the resistance area. At the moment, the pair may reverse in favor of further decline. In this case, the downside target may be at 1.4020. Later, the instrument may complete the pullback and resume growing to break 1.4215. After that, the market may boost its ascending tendency.

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2134; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.2080 and then resume moving upwards to reach 1.2320. Another signal in favor of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may be canceled if the price breaks the cloud’s downside border and fixes below 1.2055. In this case, the pair may continue falling towards 1.1965.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.2112; 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 1.2125 and then resume moving downwards to reach 1.1905. 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 1.2225. In this case, the pair may continue growing towards 1.2315.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is trading at 0.9018; 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 0.9040 and then resume moving downwards to reach 0.8895. 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 0.9105. In this case, the pair may continue growing towards 0.9195.