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USD/JPY Bears Eye Downward Trend as US Dollar Faces PressureThe current market for USD/JPY is dominated by the bears, who are eagerly anticipating a continuation of the downward trend. At this crucial moment, the trendline support is highly vulnerable. As Tokyo traders enter the market on Friday, the price of USD/JPY remains stagnant, resting below a significant resistance area near 132.70 on the 4-hour charts. The US Dollar is facing pressure, mainly due to the week's data that has led to the belief that the Federal Reserve will pause in its tightening policy campaign, with just one last rate hike scheduled for May. The primary focus of the market has been on the inflation data, with the Consumer Price Index (CPI) showing a year-on-year decrease from 6% in February to 5% in March. Furthermore, the Producer Price Index (PPI) for final demand, which was released on Thursday, also indicated a continued decrease in inflationary pressures, with a 0.5% drop last month. Over the twelve months leading to March, the PPI increased 2.7%, representing the smallest year-on-year rise since January 2021, following a 4.9% increase in February. In the event that the price breaks out of the dynamic trendline, we can expect to see a further pushdown in the price, moving in a downward direction.
by FOREXN1
7
EUR/USD Shows Potential for Growth...In the early Asian session today, the EUR/USD currency pair made a noteworthy move by touching the psychological resistance level of 1.1000. This marks the first time in over two months that the major currency pair has reached this level. While the pair is facing obstacles in extending its rally beyond this point, the upside momentum is still holding strong. This is partly due to the fact that the United States inflation has softened as predicted by market participants. As of now, it remains to be seen whether the price will continue to rise throughout the day. Nevertheless, the current trend suggests that there is potential for further growth.
Long
by FOREXN1
11
GBP/USD Showing Bullish Continuation Pattern 50% Fibo 1.2400 SUPDuring early Easter Monday morning in London, the GBP/USD currency pair is experiencing a drop for the fourth consecutive day, as it takes offers to refresh the intraday low near 1.2400. This is a result of the US Dollar rebounding due to risk aversion and hawkish bets on the US Federal Reserve (Fed), following last week's pullback from a 10-month high. Meanwhile, the Bank of England's (BoE) next move is uncertain, causing doubts about the pair's future direction. Based on our analysis, the GBP has experienced a pullback towards the 1.2400 area, which coincides with the 50% Fibonacci level. We have identified a bullish flag pattern of continuation, indicating that there is a high probability of a new bullish impulse for the Cable.
by FOREXN1
10
EUR/USD:Market Risks Weigh on Exchange Rate, says INGAccording to economists at ING, the Euro to US Dollar exchange rate (EUR/USD) is likely to be primarily driven by the US Dollar in the near future. The pair may see a surge above the 1.1000 level, but the economists believe that it will be challenging to sustain any further gains. The economists note that if the ISM services reading comes in below consensus, it could trigger a break above the 1.1000 level. However, they caution that the sustainability of rallies beyond that point would need to be tested against the market's confidence to consistently unwind defensive dollar positions. This is particularly important given the ongoing risks of fresh financial turmoil and tighter liquidity. Looking to the European Central Bank (ECB), several key members of the ECB Governing Council, including Boris Vujcic, Bostjan Vasle, and Chief Economist Philip Lane, are scheduled to speak. While there is always a risk of surprise remarks by ECB officials, the economists believe that these risks have moderated recently, as most key speakers have aligned themselves with a pledge to keep raising rates, in line with their position on the dovish/hawkish spectrum. In conclusion, while the EUR/USD pair may see a temporary surge above 1.1000, it is unlikely to sustain further gains without the market's confidence in consistently unwinding defensive dollar positions. Furthermore, ongoing risks of financial turmoil and tighter liquidity add to the uncertainty surrounding the pair's future movements.
by FOREXN1
9
USD/JPY Bears Dominate as US Dollar Hovers Near 2-Month LowsThe bears appear to be in charge of the USD/JPY as the US Dollar lingers close to a 2-month low. The market's focus now shifts to Friday's Nonfarm Payrolls jobs data. The USD/JPY has dropped in Tokyo, reflecting the US Dollar's continued weakness. The pair is currently trading at around 131.50 and has fallen from its earlier high of 131.73 to a low of 131.30. The US Dollar remains under pressure, hovering near its two-month lows, as a result of several concerning data releases from the United States. These developments have reduced expectations of a more hawkish Federal Reserve, which now seems to be approaching the end of its monetary tightening cycle. Overnight data shows that labor market conditions may finally be easing, with job openings, a key labor demand indicator, down by 632,000 to 9.9 million on the final day of February. Furthermore, US factory orders have declined for the second consecutive month, falling by 0.7% in February after a 2.1% decline in January, following a 1.7% increase in December. This data follows the Institute for Supply Management (ISM)'s report yesterday that its Manufacturing PMI dropped to 46.3 last month, the worst level since May 2020, from 47.7 in February.
by FOREXN1
3
XAUUSD Technical Analysis 05.04.2023 1h chart– Previous Daily candle closed strong Bullish at 2020.600 as Daily breaks above recent Daily Resistance and the previous Monthly High. – Buys on close above 2025.100 targeting 1h previous Support formed on 9th March 2022 at 2030.100, Leaving Runners to the next 1h previous Support formed on 9th March 2022 at 2038.600. – Sells on close below 2016.200 targeting Previous Weekly / Daily Rejection wick formed on 20th March 2023 to retest 2009.800, Leaving Runners to the 4h previous Resistance formed on 24th March 2023 at 2000.200. – ADP Non-Farm Employment Change to be released 15mins after New York session opens forecasting 208k / Previous : 242k. Later on the New York session we have ISM Services PMI.
OANDA:XAUUSD
by SalimFX20
1