Get started

Dayprofits

USD/CHF: Bullish Channel Holds Strong as EUR/USD DeclinesThe USD/CHF currency pair exhibits a robust negative correlation with the EUR/USD. Currently, the USD/CHF remains within a bullish channel, despite experiencing a significant retracement in the previous trading session. In today's session, the price has shown a strong upward movement around the 0.9000 level, indicating a potential bullish impulse. Based on our analysis, we have set a new target for the USD/CHF around the 0.91200 area. The ongoing growth in the USD/CHF suggests a corresponding decline in the EUR/USD. The negative correlation between these two currency pairs means that as the USD/CHF strengthens, the EUR/USD tends to weaken. This inverse relationship between the two pairs provides valuable insights for traders who closely monitor these markets. It is important to note that market conditions can change rapidly, and it is essential to conduct thorough analysis and monitor key support and resistance levels. We will continue to observe the USD/CHF and EUR/USD closely and provide updates on any significant developments that could impact our bullish outlook for the USD/CHF and bearish outlook for the EUR/USD.
Long
by DAY_PROFITS
2
EUR/USD: Bearish Setup Emerges with Bearish Shark PatternIn our previous analysis of the EUR/USD, we highlighted that the currency pair has been trading within a range, oscillating between support and resistance levels. Upon further examination, we have identified a bearish shark pattern with an entry point near the resistance zone. Additionally, today, we observed a divergence on the Relative Strength Index (RSI) in the H1 timeframe. Considering these factors, we are currently anticipating a potential bearish setup for the EUR/USD. The bearish shark pattern and the divergence on the RSI suggest a possible reversal in the near future. Traders may want to closely monitor the price action and key support levels for confirmation of this bearish scenario. As always, it is important to exercise caution and conduct thorough analysis before entering any trades. Market conditions can be unpredictable, and it is crucial to use appropriate risk management strategies. We will continue to monitor the EUR/USD and provide updates on any significant developments that could impact our bearish outlook.
Short
by DAY_PROFITS
2
EUR/USD Faces Key Resistance, Traders Eye Short OpportunitiesThe EUR/USD is approaching a significant resistance area, marked by the 61.8% Fibonacci retracement level from the previous swing high. We are currently seeking a short setup based on this technical analysis. Meanwhile, from a fundamental perspective, the EUR/USD has experienced a slight decline after its climb towards 1.0800 on Thursday. Investors are exercising caution and staying on the sidelines as they await the release of the highly-anticipated May jobs report from the US. The outcome of this report could have a significant impact on the market's expectations regarding the Federal Reserve's next rate decision. Dovish expectations regarding the Federal Reserve's stance continued to dominate the financial markets on Thursday, leading to considerable downward pressure on US Treasury bond yields and the US Dollar (USD). The US Bureau of Labor Statistics revised the increase in Unit Labor Costs for the first quarter down to 4.2% from the previously estimated 6.3%. Furthermore, Philadelphia Federal Reserve Bank President Patrick Harker reiterated his belief that it is time for the central bank to take a pause and "hit the stop button" for at least one meeting.
Short
by DAY_PROFITS
13
EUR/USD Continues Downward Trend as USD Buying StrengthensThe EUR/USD currency pair exhibits a decline in value driven by increased demand for the US dollar. This marks the sixth consecutive session of losses for EUR/USD, as it breaches the crucial support level of 1.0700 for the first time since late March. The decline can be attributed to the continued strengthening of the US dollar and a corrective movement in risk-associated assets. In the meantime, market participants are expected to closely monitor the political developments in the United States, particularly the discussions among lawmakers regarding the recently announced bipartisan agreement on the US debt ceiling. Based on our analysis, we propose a potential pullback around the 61.8% Fibonacci retracement level from the previous swing, which could sustain the bearish momentum of the EUR/USD pair.
Short
by DAY_PROFITS
7
USD/CAD:Anticipating Pullback and Bullish Impulse Towards 1.3670The USD/CAD currency pair is experiencing a resurgence in buying interest, leading to a renewed intraday high around 1.3605 during the early hours of Tuesday's European trading session. This positive movement marks the first upward trend in three consecutive days. This notable upward shift is reflected in the Loonie pair's reversal from an upward-sloping support line that has been in place since May 8th. Based on our analysis, we anticipate a potential retracement towards the previous support region, followed by a bullish surge towards the 1.36700 level.
by DAY_PROFITS
1
EUR/USD Faces Resistance as USD Remains ResilientThe EUR/USD pair has retraced back into the regression channel after dropping below 1.0720. It now faces potential support at the psychological level of 1.0700 and a static level. A sustained four-hour close below this level could attract further selling pressure, potentially pushing the pair towards 1.0660. The release of PCE figures and remarks made by Mester have increased the likelihood of another 25 basis points Fed rate hike in June, which has risen above 60% compared to just 25% a week ago. This has contributed to the resilience of the US Dollar (USD) against other currencies, including the Euro (EUR), and is currently limiting the upside potential of EUR/USD. Please note that these factors are currently influencing the short-term dynamics of the pair.
Short
by DAY_PROFITS
4
EUR/USD Shows Signs of Recovery as Focus Turns to PCE Price INDXEUR/USD has started to recover on Friday, bouncing back from a four-day decline that pushed the pair to its lowest level in over two months near 1.0700. However, the near-term technical outlook still lacks a clear bullish signal in the short term, and the next move will likely be influenced by the upcoming release of the US Personal Consumption Expenditures (PCE) Price Index data. Positive macroeconomic data releases from the US reignited expectations of another interest rate hike by the Federal Reserve (Fed) in June, providing a boost to the US Dollar (USD) on Thursday. The US Bureau of Economic Analysis revised the annualized Gross Domestic Product (GDP) growth for the first quarter to 1.3% from the initial estimate of 1.15%, and the weekly Initial Jobless Claims came in at 229,000, beating the market expectation of 245,000. The annual Core PCE Price Index, which is the Fed's preferred inflation gauge, is projected to rise by 4.6% in April, matching the reading for March. On a monthly basis, core PCE inflation is expected to remain steady at 0.3%. If the monthly figure meets or exceeds 0.5%, it could reinforce expectations of a Fed rate hike in June and bolster the US Dollar's strength heading into the weekend. Conversely, a softer-than-expected reading would likely limit the USD's gains and potentially allow EUR/USD to extend its rebound. According to the CME Group FedWatch Tool, the probability of the Fed keeping its policy rate unchanged in June has fallen below 60% from nearly 80% earlier this week. Market positioning indicates that EUR/USD faces a two-way risk depending on the outcome of the PCE inflation data. Our idea revolves around a potential pullback around the 38.2% and 50% Fibonacci area, supported by divergence on the RSI indicator and confluence with the upper side of the dynamic channel, which could serve as additional resistance.
Short
by DAY_PROFITS
11
GBP/USD Continues Bearish Trend Despite Temporary RecoveryThe GBP/USD pair is trimming its monthly losses, the first decline in three months, and hovering around 1.2360 during early Monday trading as markets in the UK and the US observe the Memorial Day holiday. Despite the Biden-McCarthy deal on the extension of the debt ceiling, the US Dollar is retreating from its multi-day high, supporting the recovery of the Cable pair from early April levels. Our forecast remains bearish, anticipating a continuation of the downtrend, particularly as the price has rebounded once again from the 61.8% Fibonacci level. Please note that trading volumes may be lighter due to the holiday, which could influence market dynamics.
Short
by DAY_PROFITS
2
GBP/USD Shows Upside Momentum but Faces Technical Hurdles PCEGBP/USD has displayed upward momentum in early Friday trading, surpassing the 1.2350 level. However, the technical outlook for the pair has yet to indicate a clear reversal. As the weekend approaches, market participants will closely monitor the release of the US Personal Consumption Expenditures (PCE) Price Index data. Despite a return of risk appetite on Thursday, the US Dollar (USD) maintained its strength due to robust economic data, supporting the hawkish stance of the Federal Reserve (Fed). The revised annualized growth rate of the US economy for the first quarter was raised from 1.1% to 1.3%, and Initial Jobless Claims for the week ending May 20 came in at 229,000, significantly lower than the market's expectations of 245,000. As market sentiment shifted, the probability of a 25 basis points Fed rate hike in June, according to the CME Group FedWatch Tool, climbed above 40%, up from nearly 20%. Later today, the US Bureau of Economic Analysis will publish the PCE Price Index data for April. Federal Reserve Governor Christopher Waller previously emphasized the importance of April's PCE inflation data in determining the next policy move. The forecast for the monthly core PCE Price Index suggests a 0.3% increase. A stronger-than-expected monthly rise, particularly at or above 0.5%, could boost the US Dollar and prompt GBP/USD to turn bearish before the weekend. Conversely, a softer reading below 0.3% might discourage investors from expecting another near-term Fed rate hike and trigger a downward correction in the US Dollar Index. From a technical standpoint, we anticipate a continuation of GBP/USD's upward movement until the 61.8% Fibonacci level, where a potential pullback in the downtrend direction may occur. Additionally, there is a divergence on the RSI indicator, and the price may form a double top within the aforementioned area.
by DAY_PROFITS
13
GOLD Price Reacts to US Treasury Yields and Debt Ceiling ConcernGold price has shown improvement as US Treasury bond yields retreat, driven by escalating concerns over the US debt ceiling. The 10-year and two-year Treasury bond yields have pulled back from their recent highs in early March. The lack of progress in negotiations to address the US debt ceiling expiration, coupled with fears of a potential catastrophic default, has weighed on market sentiment. Despite this, US House Speaker Kevin McCarthy remains optimistic about reaching an agreement before June 01, although no deal has been reached yet. The US Treasury has explored options to delay payment demands, adding to the hopes of avoiding a default. The optimism expressed by US decision-makers in avoiding a default has kept gold buyers positive, despite the prevailing challenges to market sentiment. Wall Street benchmarks have seen declines, but the S&P 500 Futures have struggled to find a clear direction, experiencing modest gains recently. While the cautious mood surrounding the US default conditions has allowed gold price to recover from short-term key support, upbeat US data and hawkish Federal Reserve (Fed) expectations have enticed gold sellers. Preliminary figures for the May monthly PMIs showed growth in the US services sector outpacing manufacturing, leading to the Composite PMI reaching its highest level in a year. However, the US S&P Global Manufacturing PMI fell short of market forecasts, while the Services PMI surpassed expectations. These positive data points, along with comments from Fed officials advocating for higher interest rates due to inflation concerns, have fueled expectations of a Fed rate increase in June. This has supported the US dollar, despite the retreat in US Treasury bond yields, posing challenges for gold buyers. The upcoming release of the FOMC Minutes, along with developments in US debt ceiling negotiations and US-China tensions, will be key factors influencing the direction of the XAU/USD pair. The FOMC Minutes could potentially strengthen the US dollar further if they provide an upbeat perspective. However, if the minutes present a pessimistic outlook, bond yields could decline, posing a challenge to the current bullish outlook.
OANDA:XAUUSD
by DAY_PROFITS
21
USD/JPY: Fundamental Analysis + Next Technical TargetsAfter reaching the Year-To-Date (YTD) high, USD/JPY bulls retreat to 139.50 in early European trading on Thursday. The Yen pair celebrates intraday gains but struggles in mixed markets.However, Bank of Japan (BoJ) Governor Kazuo Ueda told Reuters that the economy is showing signs of improvement but is still far from hitting the inflation target. “BoJ will patiently sustain the easy monetary policy,” he added. However, US Treasury bond yields remain higher than mid-March and support USD/JPY prices. A downward revision in Germany's Q1 GDP revived recession fears in the European powerhouse, which supported the US Dollar and bond coupons at multi-day highs. While BoJ's Ueda defends easy money policy, the FOMC Minutes show policymakers are divided about the US central bank's 0.25% rate hike. Even if Atlanta Fed President Raphael Bostic and Federal Reserve Governor Christopher Waller raise hawkish Fed concerns, the market doubts another such move in June. Above all, the US policymakers' inability to deliver a debt ceiling extension deal and the House Representatives' long weekend contrast with the negotiators' view that they see progress in the latest rounds of talks. The US Treasury Department accepted Fitch and Moody's concerns about the US credit rating. The US Dollar and yields rise as the market rushes to safety. US stock futures recover while US Treasury bond yields rise to their highest levels since mid-March. Despite US default fears and Fed-BoJ policy divergence, USD/JPY buyers are still in play. Apart from these catalysts, the US weekly Jobless Claims, Chicago Fed National Activity Index, and Pending Home Sales should be watched for direction. Our technical analysis still favors the maintrend, and we expect a new impulse.
by DAY_PROFITS
2
GBP/USD Faces Selling Pressure Amid US Dollar ReboundDuring European trading hours, GBP/USD is experiencing renewed selling pressure, pushing it towards the 1.2400 level. The pair is facing challenges due to a rebound in the US Dollar, driven by uncertainty surrounding the US debt ceiling and a cautious risk sentiment in the market. This uncertainty has revived the safe-haven appeal of the Greenback. From a technical perspective, as per our previous analysis, the price rebounded from the 61.8% Fibonacci level, indicating a potential setup for a new short position.
by DAY_PROFITS
17
EUR/USD: Bearish Outlook After the German IFO Business Survey.After the German IFO Business Survey was made public, Klaus Wohlrabe, an economist at the institute, expressed concerns about the German economy potentially stagnating in the second quarter. He stated that the German economy is treading water and highlighted a significant decline in expectations within the industry, particularly regarding exports. Wohlrabe's remarks suggest that the impact of rate hikes has started to dampen demand. In response to this news, the EUR/USD currency pair exhibited a modest increase, with the exchange rate reaching 1.0782, representing a 0.12% gain for the day. Considering the information provided, our analysis leans towards a strong bearish continuation for the EUR/USD pair.
by DAY_PROFITS
3
GBP/JPY Exhibits Volatile Trading Above 171.40 - LongDuring the early European session, the GBP/JPY pair is exhibiting a fluctuating and unpredictable movement within a narrow range above 171.40. The cross is anticipated to maintain high volatility as market sentiment remains divided concerning additional interest rate hikes by the Bank of England (BoE). Despite BoE Governor Andrew Bailey's persistent efforts to raise interest rates, inflationary pressures in the United Kingdom economy have not shown signs of relenting from the double-digit territory, currently standing at 4.50%. Our forecast for this pair remains strongly bullish.
Long
by DAY_PROFITS
11
Gold Makes Recovery Attempt, Aiming for $1,970 as USD Retreats.The price of gold is currently undergoing a recovery as it seeks to regain ground above the $1,960 level, benefitting from a decline in the US Dollar index's upward momentum. Market participants are anticipating neutral policy guidance from Federal Reserve Chairman Powell's upcoming speech, which is influencing sentiment surrounding the precious metal. Additionally, end-of-the-week flows are expected to have an impact on the price dynamics of gold. From a technical perspective, there are indications of a divergence and overbought conditions on the Relative Strength Index (RSI), suggesting a potential shift in the market. Based on our analysis, we are considering the possibility of a new bearish impulse in the near future.
OANDA:XAUUSD
by DAY_PROFITS
20
EUR/USD Struggles Amid Caution and Market Uncertainty - SHORTEUR/USD Struggles to Find Stability as Bearish Pressure Persists Amid Cautionary Remarks and Market Uncertainty The EUR/USD pair has been facing significant challenges in finding stability around the 1.0800 level, with the near-term technical outlook indicating that sellers are likely to maintain control over the pair's movements in the short term. Adding to the downward pressure, European Central Bank (ECB) policymaker Francois Villeroy de Galhau recently expressed caution by stating that he anticipated reaching the terminal rate no later than the summer. These remarks, coupled with the overall risk-averse market sentiment due to the lack of progress in US debt-ceiling negotiations, have made it difficult for EUR/USD to shake off its bearish stance on Monday. Given the prevailing market conditions and the cautious remarks from the ECB policymaker, the bearish setup for EUR/USD continues to persist, extending into the present day.
by DAY_PROFITS
9
EUR/USD Slides Towards 1.0800 on Risk-Off Sentiment and US DebtEUR/USD is experiencing a decline in the European morning, with the pair approaching the 1.0800 level. The US Dollar is gaining strength as the market adopts a risk-off profile, with traders exercising caution ahead of upcoming US debt-ceiling discussions. In terms of technical analysis, the price initially rebounded from the 61.8% Fibonacci level today, following a bearish impulse during the opening of the London market. However, our outlook remains focused on a continuation of the short position.
by DAY_PROFITS
9
GBP/USD Rebounds Above 1.2400 as USD Weakens, Eyes on Powell.GBP/USD reclaims 1.2400 levels as US Dollar weakens anew, focus on Powell's remarks The GBP/USD currency pair is witnessing a resurgence above the 1.2400 threshold, after exhibiting signs of exhaustion in its downward momentum. The Cable is striving to recover ground as the US Dollar experiences a corrective decline in tandem with the retreat in US Treasury bond yields. Investors eagerly await Federal Reserve Chairman Powell's upcoming speech, which could impact market sentiment. From a technical standpoint, the recent bounce in the exchange rate faltered near a resistance level, denoted by the breach of a month-long ascending trend-channel support line. The subsequent decline reinforces the prevailing negative bias, enhancing the likelihood of a further short-term depreciation. Based on our technical analysis, we anticipate a potential pullback towards the 50% Fibonacci retracement level before considering a short setup.
by DAY_PROFITS
5
EUR/USD Rebounds Towards 1.0800 Amid Dollar Correction.In the European morning, the EUR/USD currency pair is making a recovery, edging closer to the 1.0800 level. This rebound comes as the US Dollar undergoes a correction across the board, despite a cautious market environment prevailing. Traders are closely monitoring speeches from both the European Central Bank (ECB) and the Federal Reserve's Chairman Jerome Powell for further insights into monetary policies. Despite expectations of more rate hikes by the ECB, the shared currency fails to find solace in these projections. It is worth noting that ECB President Christine Lagarde has emphasized the necessity of combating persistently high inflation and acknowledged the presence of factors that could significantly increase inflationary risks. However, these remarks fail to impress bullish sentiment or provide any meaningful support to the EUR/USD pair. Investors are now turning their attention to the ECB Bulletin, hoping for some catalyst, while keeping a keen eye on Powell's appearance later in the day. Regarding our technical analysis, we suggest considering a potential pullback around the previous resistance zone near the 61.8% Fibonacci retracement level as a basis for a new short setup.
by DAY_PROFITS
5
EUR/USD Depressed as US Dollar Gains MomentumEUR/USD Remains Depressed Near April Lows as US Dollar Strengthens and Debt Ceiling Optimism Prevails The EUR/USD pair continues its downward trajectory for the third consecutive day on Thursday, staying close to its lowest level since early April reached in the previous session. The US Dollar (USD) remains strong near a two-month high, exerting downward pressure on the major currency pair. Recent hawkish comments from various Federal Reserve (Fed) officials have pushed back against market expectations of potential interest rate cuts later this year. This, coupled with optimism surrounding the US debt ceiling being raised, supports higher US Treasury bond yields and reinforces the strength of the USD. US President Joe Biden and top congressional Republican Kevin McCarthy have emphasized their commitment to reaching a deal soon to raise the government's $31.4 trillion debt ceiling. This has alleviated concerns of a potential American debt default and has boosted investor confidence, resulting in a generally positive sentiment in equity markets. Consequently, traders are exercising caution in placing aggressive bullish bets on the safe-haven US Dollar. Additionally, expectations of further interest rate hikes by the European Central Bank (ECB) could potentially limit losses for the EUR/USD pair. ECB President Christine Lagarde has reiterated that efforts to control persistently high inflation are ongoing, suggesting that there are factors that could pose significant upside risks to the inflation outlook. This reinforces the belief that more interest rate increases are yet to come, warranting caution before positioning for further depreciation of the EUR/USD pair. Market participants will closely monitor the US economic calendar, particularly the release of Weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and the Philly Fed Manufacturing Index, for further guidance. Furthermore, speeches by influential members of the Federal Open Market Committee (FOMC) will be closely watched as they, along with US bond yields, will influence USD demand and provide impetus for the EUR/USD pair. Additionally, developments surrounding the US debt-limit negotiations and overall market sentiment will contribute to short-term trading opportunities within the major currency pair.
Short
by DAY_PROFITS
11
USD/CHF Rebounds as US Dollar Strengthens Near Five-Week High The USD/CHF pair has witnessed dip-buying activity on Thursday after experiencing a pullback within the range of the 38.2% and 50% Fibonacci levels. While spot prices show a mildly positive bias during the early European session, they remain comfortably close to the nearly five-week high reached on Wednesday. The US Dollar (USD) has been strengthening for the third consecutive day, maintaining its position near the highest level since March 24. This significant upward momentum is seen as a key factor providing support to the USD/CHF pair. The recent hawkish comments from various Federal Reserve (Fed) officials have fueled speculations that the central bank will maintain higher interest rates for an extended period. This sentiment, combined with the growing optimism surrounding the resolution of the US debt ceiling issue, has led to elevated US Treasury bond yields and continues to bolster the strength of the Greenback.
by DAY_PROFITS
7