FOREX SIGNALS

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, USDCH is trading below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is expected to break 3/8 and then continue falling to reach the support at 2/8. Still, this scenario may no longer be valid if the price breaks 4/8 to the upside. After that, the instrument may grow towards the resistance at 5/8.

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

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, XAUUSD is trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to break 5/8 and continue growing to reach the resistance at 6/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. After that, the instrument may reverse and correct towards 3/8.

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue moving upwards.

EURUSD, “Euro vs US Dollar”

After finishing the descending wave at 1.2163 along with the correction towards 1.2215, EURUSD is expected to start another decline to break 1.2150. Later, the market may continue trading downwards with the short-term target at 1.2084.

GBPUSD, “Great Britain Pound vs US Dollar”

After completing the descending wave at 1.4100 along with the correction towards 1.4180, GBPUSD is expected to form a new descending structure with the short-term target at 1.4035. Later, the market may correct to return to 1.4100.

USDRUB, “US Dollar vs Russian Ruble”

After completing the correction at 73.73 and rebounding from this level, USDRUB is falling towards 72.54. After that, the instrument may start another correction to reach 73.28 and then resume trading downwards with the target at 72.00.

USDJPY, “US Dollar vs Japanese Yen”

After finishing the ascending wave at 109.87, USDJPY has completed the correction towards 109.51; right now, it is growing to break 110.08. After that, the instrument may form one more ascending structure with the short-term target at 110.35.

USDCHF, “US Dollar vs Swiss Franc”

After completing the ascending wave at 0.9023, USDCHF has finished the correction towards 0.8980; right now, it is growing to break 0.9037. Later, the market may continue trading upwards with the short-term target at 0.9127.

AUDUSD, “Australian Dollar vs US Dollar”

After finishing the descending wave at 0.7714 along with the correction towards 0.7750, AUDUSD is expected to fall and break 0.7687. After that, the instrument may continue trading downwards with the target at 0.7603.

BRENT

After rebounding from 69.84, Brent is growing towards 73.00. Later, the market may correct to reach 71.50 and then form one more ascending structure with the short-term target at 75.00.

XAUUSD, “Gold vs US Dollar”

Gold has completed the correction at 1910.00; right now, it is still falling and may later break 1890.50. After that, the instrument may continue trading downwards with the short-term target at 1872.00.

S&P 500

The S&P index is still consolidating around 4168.3 without any particular direction. Possibly, the asset may expand the range towards the short-term target at 4272.1. Later, the market may fall to return to 4168.3 and then resume trading upwards with the target at 4297.3.

EURUSD managed to reach stability and is currently waiting for the news on US employment.

The major currency pair reached stability on Thursday morning. The current quote for the instrument is 1.2200.

The USD was supported when investors switched their attention to further expectations of the US labor market reports to be published later this week. For example, today there will be a weekly report on the Unemployment Claims, while tomorrow will offer us the Non-Farm Employment Change, the Unemployment Rate, and the Average Hourly Earnings. In addition to that, the USA is going to publish the ADP Non-Farm Employment Changeб which is expected to show 645K in May after being 742K in April.

As for the weekly report on the Unemployment Claims, it is expected to show 400K after being 406K the week before.

Apart from that, the USA will report on the Services PMI, both from Markit and ISM, for May.

FOMC members will continue delivering their speeches, which may also influence EURUSD.

Considering all the macroeconomic data to be published in the nearest future, one may expect the major currency pair to become more volatile later in the evening.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7725; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7750 and then resume moving downwards to reach 0.7625. 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 0.7785. In this case, the pair may continue growing towards 0.7875.

BRENT

Brent is trading at 71.61; 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 71.05 and then resume moving upwards to reach 73.25. Another signal in favor of a further uptrend will be a rebound from the descending channel’s upside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 69.45. In this case, the pair may continue falling towards 66.75.

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.4149; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.4165 and then resume moving downwards to reach 1.4010. 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 1.4205. In this case, the pair may continue growing towards 1.4305.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, the asset continues testing the support level where it has formed several reversal patterns, including Doji. At the moment, USDCAD may reverse and start a new growth towards 1.2155. 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 area at 1.2000 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 Harami, 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 0.7790. At the same time, an opposite scenario implies that the price may fall towards the support level at 0.7705, 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 rebounding from the support area, where it has formed a Hammer reversal pattern. At the moment, USDCHF may reverse and start new growth. In this case, the upside target may be the resistance level at 0.9055. Still, there might be an alternative scenario, according to which the asset may fall to reach 0.8945 before resuming its growth.

Brent

In the H4 chart, after completing the correctional downtrend at 50.0% fibo, Brent is steadily growing and has already broken both highs, local and long-term, at 69.97 and 71.07 respectively. Later, the market may continue growing to reach the post-correctional extension area between 138.2% and 161.8% fibo at 72.05 and 73.33 respectively. The support is the local low at 64.50.

The H1 chart shows a more detailed structure of the current uptrend. At the same time, there is a divergence on MACD, which may hint at a possible pullback after the pair tests the upside border of the post-correctional extension area between 138.2% and 161.8% fibo at 72.05 and 73.33 respectively. The correctional targets may be 23.6%, 38.2%, 50.0%, and 61.8% fibo at 71.25, 69.95, 68.91, and 67.88 respectively.

Dow Jones

As we can see in the H4 chart, Dow Jones is slowing down a bit on its way towards the high at 35102.0. After completing the correction to the downside, the asset is moving upwards and has already reached 76.0% fibo. This rising wave is heading to break the high and then enter the post-correctional extension area between 138.2% and 161.8% fibo at 35786.0 and 36210.0 respectively. However, an alternative scenario implies a rebound from the high and a new mid-term correctional downtrend to break the low at 33295.0 and then mid-term 23.6% and 38.2% fibo at 32970.0 and 31651.0 respectively.

The H1 chart shows potential downside targets after a local divergence on MACD. The resistance is at 34856.2, At the moment, the index is falling and approaching 23.6% fibo at 34488.0. The next downside targets may be 38.2%, 50.0%, 61.8%, and 76.0% fibo at 34260.0, 34076.0, 33893.0, and 33670.0 respectively. Still, the key downside target is the local support at 33295.0.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to test 5/8, break it, and then continue growing to reach the resistance at 7/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. After that, the instrument may fall towards the support at 3/8.

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue the ascending tendency.

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, USDCAD is trading below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is expected to test 3/8, rebound from it, and then resume falling towards the closest support at 2/8. Still, this scenario may no longer be valid if the price breaks 3/8 to the upside. After that, the instrument may continue growing to reach the resistance at 4/8.

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

EURUSD, “Euro vs US Dollar”

EURUSD is still consolidating around 1.2230. If later the price breaks this range to the upside, the market may expand it up to 1.2286; if to the downside – start a new decline to break 1.2150 and then continue the correction with the target at 1.2100.

GBPUSD, “Great Britain Pound vs US Dollar”

After completing the descending impulse at 1.4144, GBPUSD is expected to form a new consolidation range above this level. Possibly, the pair may correct towards 1.4194. Later, the market may form a new descending structure with the target at 1.4090 or even reach 1.4035.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is still consolidating above 73.13 without any particular direction. Possibly, today the pair may correct towards 73.86 and then resume falling to reach 72.54. After that, the instrument may start another correction to test 73.13 from below and then resume trading downwards with the target at 72.00.

USDJPY, “US Dollar vs Japanese Yen”

After forming another consolidation range, this time above 109.32, USDJPY is trading to break it to the upside. Today, the pair may form one more ascending structure with the short-term target at 110.35.

USDCHF, “US Dollar vs Swiss Franc”

After completing the correctional wave at 0.8950, USDCHF is growing to break 0.8993. Later, the market may continue trading upwards with the target at 0.90387 or even reach 0.9125.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is still consolidating below 0.7767. Possibly, the pair may break the range to the downside and resume trading downwards with the short-term target at 0.7603.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the correction continues. After forming several reversal patterns, such as Doji, close to the resistance level, XAUUSD is reversing and may form a new pullback to reach the support area at 1875.00. At the same time, an opposite scenario implies that the price may continue growing towards 1925.00 without testing the support area.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, the correctional impulse continues. By now, NZDUSD has formed several reversal patterns, such as Shooting Star, close to the resistance level. The pattern materialization target may be the channel’s downside border at 0.7215. Later, the price may test this level, rebound from it, and resume moving upwards. However, an alternative scenario implies that the price may continue growing towards 0.7315 without testing the support level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the asset is still correcting within the uptrend. By now, GBPUSD has formed several reversal patterns, such as Shooting Star, not far from the resistance area. At the moment, the pair may reverse and start a new pullback. In this case, the correctional target may be at 1.4090. However, the next upside target after the pullback may be at 1.4240. After breaking the resistance level, the instrument may boost its ascending tendency.

EURUSD was falling and rising again but the “greenback” remains fundamentally weak.

The major currency pair is consolidating on Wednesday morning after slight fluctuations last night. The current quote for the instrument is 1.2220.

The statistics from the Euro area were mostly positive. The German Final Manufacturing PMI showed 64.4 points in May after being 64.0 points before. The same indicator for the Euro Area improved up to 63.1 points against 62.8% points earlier.

The CPI Flash Estimate in the Euro Area showed 2.0% y/y in May, the highest over the last two years, after being 1.6% y/y in the previous month and against the expected reading of 1.9% y/y. The Core CPI Flash Estimate was 0.9% y/y after being 0.7% y/y the month before.

Inflation in the Euro Area boosted thanks to partial removal of social restrictions, which lead to a demand recovery. A decline in the number of new coronavirus cases allows countries to re-open shops, cafes, and restaurants, thus increasing consumer activismю Another thing is travelling. Of course, there are still some issues, such as delivery interruptions, which limit production and slows down the demand.

Also, the labor market parameters in the region went up a bit – the Unemployment Rate dropped to 8.0% in April after being 8.1% in March.

As for the statistics from the USA, the Markit Manufacturing PMI showed 62.1 points in May after being 61.5 points earlier. The ISM Manufacturing PMI also improved, up to 61.2 points against 60.7 points over the same period of time. The components of the report demonstrate significant improvement of the industrial sector thanks to an increasing number of new orders.