After three straight days of sharp movement, the pound has settled down on Tuesday and is slightly lower, trading at 1.2496.
Is the UK labour market showing signs of strain? Today's employment numbers are pointing in that direction. The unemployment rate rose to 3.9%, up from 3.8% which was also the estimate. Unemployment claims rose by 46,700, up from 26,500 and...
FRA40 - 24h expiry
Trend line support is located at 7400.
Previous resistance located at 7450.
Price continues to trade within the triangle formation.
We expect a reversal in this move.
Risk/Reward would be poor to call a buy from current levels.
We look to Buy at 7400 (stop at 7370)
Our profit targets will be 7470 and 7500
Resistance: 7450 / 7470 /...
CHN50 - 24h expiry
Buying pressure from 12916 resulted in prices rejecting the dip.
The current move higher is expected to continue.
The bias is still for lower levels and we look for any gains to be limited.
We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Further downside is expected although we prefer to...
GDP/USD has started the week in positive territory, after a two-day slide that saw the pound lose 1.5%. In the North American session, GBP/USD is trading at 1.2514, up 0.54%.
On the economic calendar, it's a fairly quiet start to the week. There are no releases out of the UK. In the US, the Empire State Manufacturing Index slid to -31.8, versus 10.8 prior and an...
AUDJPY - 24h expiry
The downward trending resistance line at 91.30 should provide the ideal target and fade level as medium term bears build positions into the current strength.
Previous support level of 90.50 broken.
The trend of higher intraday lows has also been broken.
Further downside is expected.
Risk/Reward would be poor to call a sell from current...
Palladium - 24h expiry
There is no indication that the selloff is coming to an end.
We look for losses to be extended today.
Short-term oscillators have turned negative.
Expect trading to remain mixed and volatile.
The primary trend remains bearish.
We look to Sell a break of 1501.8 (stop at 1525.8)
Our profit targets will be 1441.8 and 1431.8...
AUDJPY - 24h expiry
Previous support located at 90.00.
Previous resistance located at 90.50.
The trend of higher intraday lows has also been broken.
Further downside is expected.
Risk/Reward would be poor to call a sell from current levels.
We look to Sell at 90.50 (stop at 90.90)
Our profit targets will be 89.50 and 89.30
Resistance: 90.25 / 90.50 /...
GBP/USD is trading at 1.2517 in Europe, almost unchanged.
In the UK, GDP declined by 0.3% in March m/m, below the 0.1% estimate and the February reading of 0.0%. Still, the economy managed to gain 0.1% in the first quarter, unchanged from Q4 2022 and matching the estimate.
There was no surprise as the Bank of England raised rates by 25 basis points, bringing the...
FRA40 - 24h expiry
Previous support located at 7350.
Previous resistance located at 7425.
Price action looks to be forming a bottom.
Risk/Reward would be poor to call a buy from current levels.
Short term RSI has turned positive.
We look to Buy at 7325 (stop at 7275)
Our profit targets will be 7445 and 7450
Resistance: 7425 / 7450 / 7500
Support: 7350...
NZDUSD - 24h expiry
Previous support located at 0.6300.
Previous resistance located at 0.6325
There is no indication that the selloff is coming to an end.
Further downside is expected.
Risk/Reward would be poor to call a sell from current levels.
We look to Sell at 0.6325 (stop at 0.6355)
Our profit targets will be 0.6255 and 0.6250
Resistance: 0.6325 /...
The Swiss franc has fallen considerably on Thursday. In the North American session, USD/CHF is trading at 0.8950, up 0.59% on the day.
Swiss National Bank President Jordan reiterated a hawkish message on Wednesday that he sent out a week ago. Jordan said that he could not rule out further rate hikes, noting that current monetary policy was not restrictive enough....
GBPUSD - 24h expiry
Although the bulls are in control, the stalling positive momentum indicates a turnaround is possible.
This is positive for sentiment and the uptrend has potential to return.
The hourly chart technicals suggests further downside before the uptrend returns.
We therefore, prefer to fade into the dip with a tight stop in anticipation of a move...
NIK225 - 24h expiry
Selling pressure from 29249 resulted in all the initial daily gains being overturned.
The current move lower is expected to continue.
The bias is still for higher levels and we look for any dips to be limited.
The trend of higher lows is located at 28562.
Preferred trade is to buy on dips.
We look to Buy at 28805 (stop at 28665)
Our...
EURJPY - 24h expiry
Buying pressure from 147.88 resulted in prices rejecting the dip.
The current move higher is expected to continue.
This is positive for sentiment and the uptrend has potential to return.
Previous resistance located at 149.27.
Further upside is expected, however, due to the strong resistance above we prefer to buy a break of 149.27, which...
USD/JPY continues to have a quiet week and is almost unchanged, trading at 135.20.
The markets will be keeping a close eye on the Bank of Japan's Summary of Opinions, which will be released later today. The summaries rarely move the dial on the yen, but this summary could be different, as it covers the April meeting which was the first chaired by Governor Kazuo...
EURUSD - 24h expiry
Continued downward momentum from 1.1053 resulted in the pair posting net daily losses yesterday.
There is no sign that this bearish momentum is faltering but the pair has stalled close to a previous swing low of 1.1008. Intraday, and we are between bespoke support and resistance 1.0860-1.0988.
There is scope for mild buying at the open but...
NZDJPY - 24h expiry
Previous support located at 85.00.
Previous resistance located at 85.50.
Price action looks to be forming a top.
Short term momentum is bearish.
A move through 85.00 will confirm the bearish momentum.
We look to Sell a break of 85.28 (stop at 85.78)
Our profit targets will be 84.08 and 83.78
Resistance: 85.50 / 85.80 / 86.00
Support:...
AUDUSD - 24h expiry
There is no sign that this bullish momentum is faltering but the pair has stalled close to a previous swing high of 0.6806.
We are trading at overbought extremes. A lower correction is expected.
Short term bias is bullish.
We therefore, prefer to fade into the dip with a tight stop in anticipation of a move back higher.
We look to Buy at...
