EUR/USD
The main market focus and driver this Thursday, was the ECB and its economic policy meeting, and as expected, the European Central Bank did not announce any new measures, centering on the implementation of the batch of policies announced last month. The American dollar turned south ahead of the event, and the EUR/USD pair spiked during the press conference up to 1.1398, in where ECB’s President, Mario Draghi, reckoned that the downward risk towards inflation persist, and that it may fall back into negative territory during the upcoming months, before picking up by the end of the year. The generally dovish tone of the press conference, and the failure of the common currency to regain the critical 1.1400 level, finally resulted in an uturn of the greenback, which soared across the board as Draghi kept the door open for additional easing in the future.EUR saw its gains rapidly eroded after market’s attention shifted towards the upcoming FED meeting next week, as somehow, market expects a hawkish statement, preannouncing a June rate hike. The EUR/USD pair ended back where it started, below the 1.1300 level and the 23.6% retracement of the latest daily bullish run at 1.1315. The long upper wick of the daily candle suggests that bulls are in retreat mode, implying the pair can fall further during the upcoming days. From a technical point of view, the pair presents a neutraltobearish stance, as in the 4 hours chart, the price is below a horizontal 20 SMA, whilst the technical indicators head nowhere within negative territory. The pair needs to break, either below 1.1220, the 38.2% retracement of the mentioned rally, or above 1.1460, a major static resistance, to be able to find a clear directional path.
Support levels:1.1270 1.1220 1.1160
Resistance levels: 1.1315 1.1340 1.1390
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WTI CRUDE
West Texas Intermediate crude oil futures closed the week at levels last seen in November 2015, having extended its yearly rally up to $44.47 this past week. On Friday, however, the commodity retreated partially, in spite of news showing that US operating rigs fell by 8 to 343 in the week ended April 22, the fewest since November 2009, according to the Baker Hughes report. It was the fifth straight weekly decline, even as oil prices continued to rebound. The commodity rose amid improved market sentiment, which turned more upbeat on signs that the global supply glut may be finally easing. Technically, the daily chart shows that the indicators have retreated partially from overbought territory, but are far from suggesting the price may fall further. Shorter term, and according to the 4 hours chart, the downward potential remains also limited, as despite the technical indicators have lost upward strength, the price remains well above its moving averages, while approaches to the 43.00 level have been steadily attracting buying interest.
Support levels: 43.05 42.60 42.10
Resistance levels: 44.30 44.90 49.40
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EUR/USD
Majors passed through a lackluster Monday with little definitions, but the dollar edged generally lower whilst the Pound outperformed due to diminishing fears over a Brexit. A sparse macroeconomic calendar and some soft readings in the US housing sector during the American afternoon led the greenback’s decline during the US session, although weaker commodities weighed on the AUD and the CAD, which closed the day pretty much unchanged from Friday’s closes.In the EU Germany released its IFO survey, which missed market’s expectations in April, but showed that sentiment remained stable, as the assessment of the current situation down to 113.2 from 113.6, and expectations up to 100.4, above March 100.0, but a tad below expectations of 100.8. In the US, New Home sales decreased 1.5% in March to a 511,000 annualized pace, missing the median forecast for a gain to 520,000. Markets attention is centered in the upcoming FED and BOJ’s meetings, both expected to shed some light over upcoming economic policies. And while the first is expected to take one step towards a new rate hike, the second is largely expected to maintain the easing path. The EUR/USD pair fell down to 1.1215 early Asia, but was unable to extend its decline below a major static support the 38.2% retracement of the latest daily advance around 1.1220, and dedicated the day to recover some ground, stretching up to 1.1277. The EUR may advance further, up to the 1.1310 region, the 23.6% retracement of the mentioned rally, given that in the 4 hours chart, the price is aiming to advance above a still bearish 20 SMA, whilst the technical indicators maintain bullish slopes within negative territory, but remain below their midlines.
Support levels:1.1250 1.1220 1.1160
Resistance levels: 1.1315 1.1340 1.1380
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WTI CRUDE
Crude oil gained more than 3% on Tuesday amid a weaker US dollar, while investors await API inventories data later on the day ahead of the US Government oil stockpiles report due on Thursday. West Texas Intermediate crude for June delivery rose $1.40, or 3.3%, to settle at $44.04 a barrel on NYMEX, marking the highest settlement so far this year. The daily chart for the commodity shows that the price is close to the yearly highs posted earlier this month at $44.47, and that remains well above its 100 and 200 SMAs, with the shortest slowly turning higher, but still far from signaling a steeper recovery in prices. In the mentioned time frame, the Momentum indicator continues heading south towards its 100 level, but the RSI resumed its advance and heads north around 62, limiting the downside. In the 4 hours chart, the technical stance is bullish, as the price is well above its moving averages that maintain strong bullish slopes, whilst the RSI indicator hovers around 59.
Support levels: 43.40 42.60 41.90
Resistance levels:44.50 45.10 45.80
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EUR/USD
Majors traded within limited ranges during the first half of the day, as markets awaited the US Federal Reserve latest economic policy decision that anyway resulted a disappointment, as the Central Bank failed to clarify the date of an upcoming rate hike. The dollar initially rallied across the board, on a headline announcing that the FED is no longer concerned over the economic slowdown, by omitting to say that “global economic and financial developments continue to pose risks,” whilst once again, they seem comfortable over the developments of the job’s sector. Finally, the committee reiterated that it will probably raise rates at a “gradual” pace. Anyway, the statement failed to clearly hint an upcoming rate hike, and chances have diminished for a move during the June meeting. After investors digested the news, the dollar is modestly lower across the board, with all eyes now on the Bank of Japan’ decision, to be announced some time during the upcoming Asian session.The EUR/USD pair traded between 1.1271 and 1.1360 right after the event, settling finally above 1.1315, the 23.6% retracement of the March/April bullish run, and presents a mild positive tone in the 4 hours chart, as the low converges with the 20 SMA, whilst the technical indicators head modestly higher within bullish territory. Overall, the upside remains favor, yet the pair needs to advance beyond the immediate resistance formed by the 1.1380/90 region to be able to continue rallying towards the 1.1460 region. Bulls will maintain the lead as long as the price holds above 1.1270.
Support levels:1.1270 1.1230 1.1200
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
Federal Reserve, the Bank of Japan decided to stay path, with Kuroda saying they need more time to assess the effects of negative rates. The EUR/USD pair, despite reaching a fresh weekly high of 1.1367, was unable to benefit much, as data coming from both shores of the Atlantic, resulted mixed. In Germany, unemployment fell by 16,000 and wages grew during April, but harmonized inflation fell into negative territory, down 0.3% monthly basis, and by 0.1% compared to a year before.US data was also mixed as the advanced GDP for Q1 showed the economy grew at an annualized rate of 0.5% against the 0.7% expected, the slowest pace in two years, underlying the slowdown suffered by the US economy since the last quarter of 2015. Core CPE on the other hand, jumped to 2.1% during the quarter, which could heighten expectations that the Fed could act sooner than expected, particularly if the economy gives some signs of further recovery.Having advanced for a fourth consecutive day, the EUR/USD pair has broken above the 1.1315 Fibonacci level early Asia, and retracements towards the level during the next sessions attracted buying interest. Nevertheless, the 4 hours chart presents a neutraltobullish stance, as the technical indicators head nowhere within positive territory, but the price is above its moving averages, with the 20 SMA heading north around 1.1310. The pair has still to beat the strong resistance in the 1.1380/90 region to be able to advance further, eyeing then a retest of the 1.1460 price zone, a major long term resistance level.
Support levels:1.1315 1.1270 1.1230
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
Federal Reserve, the Bank of Japan decided to stay path, with Kuroda saying they need more time to assess the effects of negative rates. The EUR/USD pair, despite reaching a fresh weekly high of 1.1367, was unable to benefit much, as data coming from both shores of the Atlantic, resulted mixed. In Germany, unemployment fell by 16,000 and wages grew during April, but harmonized inflation fell into negative territory, down 0.3% monthly basis, and by 0.1% compared to a year before.US data was also mixed as the advanced GDP for Q1 showed the economy grew at an annualized rate of 0.5% against the 0.7% expected, the slowest pace in two years, underlying the slowdown suffered by the US economy since the last quarter of 2015. Core CPE on the other hand, jumped to 2.1% during the quarter, which could heighten expectations that the Fed could act sooner than expected, particularly if the economy gives some signs of further recovery.Having advanced for a fourth consecutive day, the EUR/USD pair has broken above the 1.1315 Fibonacci level early Asia, and retracements towards the level during the next sessions attracted buying interest. Nevertheless, the 4 hours chart presents a neutraltobullish stance, as the technical indicators head nowhere within positive territory, but the price is above its moving averages, with the 20 SMA heading north around 1.1310. The pair has still to beat the strong resistance in the 1.1380/90 region to be able to advance further, eyeing then a retest of the 1.1460 price zone, a major long term resistance level.
Support levels:1.1315 1.1270 1.1230
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
The dollar’s bearish trend extended to fresh lows at the beginning of May, down against all of its major rivals. The EUR/USD pair advanced up to 1.1534, level last seen in August 2015 when Chinese Black Monday sent the dollar sharply hundred of pips lower across the board. In the macroeconomic front, data coming from Europe showed that the manufacturing sector in the region grew modestly in April, as the final revisions of the Markit manufacturing PMIs came in mixed, with German reading up to 51.8, from March’s 50.7, but below expectations, whilst the EU figure resulted at 51.7 and French one plummeted to 48.0. Things in the US were not better, as the ISM manufacturing declined to 50.8 in April from 51.8 in March, whilst the Markit manufacturing PMI also printed 50.8. Also released this Monday, US construction spending advanced in March to its highest level in more than eight years, up 0.3% from the previous month, giving hopes the first quarter slowdown receded, at least in the housing sector. The pair stands firmly above the 1.1500 figure, with scope to reach 1.1713, the high reached last August, and well above the 1.1460 region, now a major support level. As long as retracements towards the level attract buying interest, the pair has scope to test such high. Intraday charts show that the bullish tone persists, despite indicators stand in extreme overbought territory. Some consolidation could be expected ahead of the Nikkei opening, yet additional advances beyond 1.1545, now the immediate resistance, should support an upward continuation for this Tuesday.
Support levels:1.1460 1.1420 1.1380
Resistance levels: 1.1545 1.1590 1.1630
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EUR/USD
The American dollar posted a strong comeback in the US afternoon after plummeting to fresh yearly lows against most of its major rivals. Commodity related currencies underperformed, with the Canadian dollar falling alongside with oil and the AUD hit by a surprise rate cut announced by the RBA early Asia. China was behind market’s anxiety, as the latest manufacturing PMI fell for fourteenth consecutive month, reviving concerns over a global economic slowdown. European stocks plummeted, closing the day in the red, helping the common currency in surging to a fresh 8month high of 1.1615 against the dollar. The release of betterthanexpected data in Europe fueled demand for the common currency, as in March, industrial producer prices rose by 0.3% in the euro area, following a 0.7% in the previous month. The pair began to ease after the release of poor UK data, which gave the greenback a breath that turned into a strong intraday advance following Wall Street’s opening. In the US there were no major announcements, although the IBD/TIPP Economic Optimism Index gained 2.4 points, or 5.2%, in May, posting a reading of 48.7 vs. 46.3 in April, suggesting consumer confidence in the country began to pick up. The EUR/USD pair fell as low as 1.1500 before finally bouncing, to close the day flat. Nevertheless, the downward kneejerk seems to have been merely corrective as in the 4 hours chart, the price remains far above a bullish 20 SMA, currently in the 1.1460 region, whilst the RSI indicator is resuming its advance after erasing extreme overbought conditions. Furthermore, and given the recent break above a major resistance, now support at 1.1460, the pair needs now to break below the 1.1380/1.1420 region to negate the ongoing bullish trend. The immediate resistance comes at 1.1565, and an upward extension beyond it should favor a retest of the mentioned high, en route to 1.1713, August 2015 monthly high.
Support levels:1.1500 1.1460 1.1420
Resistance levels: 1.1565 1.1615 1.1660
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EUR/USD
The American dollar posted a strong comeback in the US afternoon after plummeting to fresh yearly lows against most of its major rivals. Commodity related currencies underperformed, with the Canadian dollar falling alongside with oil and the AUD hit by a surprise rate cut announced by the RBA early Asia. China was behind market’s anxiety, as the latest manufacturing PMI fell for fourteenth consecutive month, reviving concerns over a global economic slowdown. European stocks plummeted, closing the day in the red, helping the common currency in surging to a fresh 8month high of 1.1615 against the dollar. The release of betterthanexpected data in Europe fueled demand for the common currency, as in March, industrial producer prices rose by 0.3% in the euro area, following a 0.7% in the previous month. The pair began to ease after the release of poor UK data, which gave the greenback a breath that turned into a strong intraday advance following Wall Street’s opening. In the US there were no major announcements, although the IBD/TIPP Economic Optimism Index gained 2.4 points, or 5.2%, in May, posting a reading of 48.7 vs. 46.3 in April, suggesting consumer confidence in the country began to pick up. The EUR/USD pair fell as low as 1.1500 before finally bouncing, to close the day flat. Nevertheless, the downward kneejerk seems to have been merely corrective as in the 4 hours chart, the price remains far above a bullish 20 SMA, currently in the 1.1460 region, whilst the RSI indicator is resuming its advance after erasing extreme overbought conditions. Furthermore, and given the recent break above a major resistance, now support at 1.1460, the pair needs now to break below the 1.1380/1.1420 region to negate the ongoing bullish trend. The immediate resistance comes at 1.1565, and an upward extension beyond it should favor a retest of the mentioned high, en route to 1.1713, August 2015 monthly high.
Support levels:1.1500 1.1460 1.1420
Resistance levels: 1.1565 1.1615 1.1660
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EUR/USD
The greenback advanced some against most of its major rivals, edging sharply higher against the CAD and the AUD as commodityrelated currencies were weighed by falling oil and gold prices and poor local data. The common currency was unable to recover above the 1.1500 figure, and ended the day a handful of pips below the level against the greenback, with mixed data coming from both sides of the Atlantic being for the most mixed.The release of the final Services and Composite readings for the month of April in the EU, showed that activity grew at a slower pace than initially estimated, indicating a tepid start of the second quarter. Retail Sales in the EU, declined by 0.5% in March compared to the previous month, up by 2.1% compared to a year before, against expectations of a 2.5% advance. In the US, data came in mixed, with the ADP employment survey disappointing, as it showed that the private sector added 156,000 new jobs in March, although the Services sector grew by more than expected whilst new orders for U.S. factory goods also rose more than expected up by 1.1% after February’s downwardly revised 1.9% decline. The 4 hours chart for the EUR/USD pair shows that the technical indicators have erased all of their extreme readings and stabilized above their midlines, with the Momentum indicator heading lower right above its100 level and the RSI flat around 57, whilst the price is unable to establish itself above a still bullish 20 SMA. The daily low was of 1.1469, showing that buying interest is aligned around the major support, yet at this point, the pair needs to advance firmly above the 1.1530 level to regain its previous positive tone and be able to retest the high at 1.1615. Below the mentioned support on the other hand, the price can decline down to 1.1380, and it will take a break below this last to deny the recently born bullish trend.
Support levels:1.1500 1.1460 1.1420
Resistance levels: 1.1530 1.1565 1.1615
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EUR/USD
The EUR/USD pair edged sharply lower for the third consecutive day, falling down to 1.1385 before settling around the 1.1400 figure. Stocks opened generally higher in the region, although volumes were closed as France and German markets were close on holidays. The USD extended its advance during the US session, despite US initial jobless claims climbed 17,000 to 274,000 in the week ended Apr 29, the Labor Department said Thursday, above the 260,000 expected. However, claims remained near historically low levels, which is consistent with a strengthening job market. Japan will resume activity after a threeday holiday, although the reaction may be limited ahead of the release of the US Nonfarm Payroll report early Friday. Data has been quite mixed in the US, with some positive notes in jobs creation, but limited wages’ growth, this last, probably the subcomponent that will define how the greenback will end the week. A solid job’s report, with wages posting some interesting advances can spark nearterm dollar’s gains, yet if they can be sustainable in time is yet to be seen. From a technical point of view, the pair moved from extremely overbought to extremely oversold in three days, according to the 4 hours chart technical readings, with the price now well below its 20 SMA, and nearing the 100 and 200 SMAs, posting limited advances in the 1.1300/30 region. The main support for the upcoming session is the 1.1380 level, which if it’s broken with the report, can see the decline extending. The pair needs to regain the 1.1460 level on the other hand, to be able to resume its bullish trend, and end the week above the 1.1500 figure.
Support levels:1.1380 1.1330 1.1290
Resistance levels: 1.1420 1.1460 1.1500
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EUR/USD
The greenback managed to recover from fresh multimonth lows by the end of last week, although the negative sentiment towards the American currency persists, after the release of a mixed April job’s report. According to the latest data, the world’s largest economy added just 160K new jobs during the month, well below market’s expectations and in line with the slowdown in growth that began late 2015. Wages, however, resulted encouraging, up 0.3% monthly basis and therefore , taking the yearonyear growth up to 2.5%, above expectations. Less jobs but better salaries, however, left inventors clueless on whether the FED will act or not next June. The EUR/USD pair rallied up to a fresh yearly high of 1.1615 after breaking above 1.1460, a major static resistance, but turned south more on increasing uncertainty over worldwide economic developments than on dollar’s selfstrength. The common currency pared losses around 1.1400 against the greenback, and the pair now trades below the 50% retracement of its latest bullish run, measured between 1.1215 and 1.1615, at 1.1420, the immediate resistance. The main support for the upcoming days comes at 1.1370, the 61.8% retracement of the same rally. Technical readings in the 4 hours chart are biased lower within negative territory, while the 20 SMA has turned sharply lower above the current level. The pair needs to recover above 1.1460 to recover its previous bullish tone and have the chance to extend its gains up to 1.1710.
Support levels:1.1370 1.1335 1.1290
Resistance levels: 1.1420 1.1460 1.1500
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EUR/USD
The EUR/USD pair traded uneventfully for a second consecutive day, ending the day pretty much flat around the 1.1380 region, although it fell intraday down to 1.1358, a fresh weekly low. With no major macroeconomic data having been released ever since the week started, speculative interest struggles to find a new direction for the pair, after it topped at 1.1615, a fresh yearly high, and completed a 50% downward correction. Germany released disappointing Industrial Production data for Match, up yearonyear by 0.3%, against expectation of a 1.0% advance, while monthly basis it declined by 1.3%. The country’s trade balance for the same month, however, posted a larger than expected surplus of €23.6B. In the US, more good news kept coming from the labor sector, as the JOLTS job opening report showed that the number of job openings increased to 5.757 million in March from a revised 5.608 million in February. Also, wholesale inventories in the US held at 0.1% in March, whilst sales rose 0.7%, the biggest monthly increase since April 2015. From a technical point of view, the pair is on a brink of a downward breakout, barely holding around the 61.8% retracement of its latest daily bullish run at 1.1370. In the 4 hours chart early attempts of advancing were contained by a bearish 20 SMA, whilst the technical indicators head modestly lower below their midlines, lacking momentum amid the intraday restricted range. Nevertheless and as long as the price remains unable to recover above 1.1420, the risk is towards the downside, with scope to test the 1.1280/1.1300 price zone.
Support levels:1.1335 1.1290 1.1250
Resistance levels: 1.1420 1.1460 1.1500
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WTI CRUDE
Crude oil prices move higher in early Thursday trading, with WTI futures extending to a fresh yearly high of $ 47.00 a barrel, after the International Energy Agency raised its 2016 global oil demand growth forecast to 1.2 million barrels per day from 1.16 million in April. But it later fell down to $45.58 on news that US stockpiles surged at the Oklahoma delivery hub during the week to May 10. After a quite volatile day, the commodity finally settled around 46.50, up for a third consecutive day. Technically, the daily chart shows that the price is well above a bullish 20 SMA, now around 44.60, a strong dynamic support, although in the same chart, the technical indicators have lost their upward strength within positive territory, limiting rallies for this Friday. In the 4 hours chart, the indicators are partially retreating from near overbought territory, but the price remains well above its moving averages, keeping the bullish trend alive.
Support levels: 46.00 45.30 44.60
Resistance levels:46.75 47.60 48.20
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EUR/USD
The American dollar closed the week with nice gains against most of its major rivals, getting a boost last Friday from betterthanexpected local data. US Retail Sales for April were up 1.3% compared to March, while the “control group” grew by 0.9% in the same period, the strongest in over two years. Also, the University of Michigan consumer confidence for May has jumped to 95.8 from 89.0 relative to a consensus forecast of 89.5. The improved technical tone of the greenback is, however, not enough to confirm that the US currency will keep on rallying, particularly due to the high levels of uncertainty surrounding the FX markets. Over the weekend, Chinese data pointed toward a slower growth in April, suggesting the economic slowdown of the world’s second largest economy is far from over, and therefore suggesting markets will be dominated by risk aversion at the weekly opening. Chinese Industrial Production surged by 6.0%in April, below the 6.8% printed in March and market’s expectations of 6.5%. Retail Sales in the same month rose by 10.1% yearly basis, missing expectations of a 10.6% advance. The EUR/USD pair fell for a second consecutive week, briefly dipping below the 1.1300 level before settling a few pips above it by the end of the week. The technical picture favors some additional declines in the pair for the upcoming days, as in the daily chart, the price has broken below its 20 SMA, for the first time since late April, whilst the technical indicators are crossing into negative territory. In the 4 hours chart, the price is now below its moving averages that anyway converge in a tight range, whilst the Momentum indicator heads south well below the 100 line and the RSI indicator consolidates near oversold readings, also maintaining the risk towards the downside.
Support levels: 1.1280 1.1240 1.1200
Resistance levels: 1.1340 1.1370 1.1410
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WTI CRUDE
Crude oil prices surged to fresh yearly highs, with WTI futures roughly 3.0% higher this Monday, reaching $47.82 a barrel, as news pointing for output disruptions suggest that supply and demand will come to balance sooner than expected, according to Goldman Sachs. The multinational investment banking said that the oil market is shifting into a deficit “much earlier than expected” as demand strengthens while another Nigerian company came off line, following last week’s shout down by Exxon Mobil. Holding near the mentioned high, oil is poised to extend its rally this week, with speculative interesting now pointing to a test of the 50.00 region. In the daily chart, the Momentum indicator has bounced from its midline and heads higher with limited upward strength, but the RSI indicator heads strongly higher approaching overbought levels, whilst the 20 SMA accelerated its advance below the current level, all in line with a continued advance. In the 4 hours chart, the technical picture is quite alike, with indicators heading north within bullish territory, and the 20 SMA now providing a dynamic support around 46.50.
Support levels: 47.10 46.10 45.90
Resistance levels: 47.90 48.60 49.20
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EUR/USD
Trading was quite erratic around the EUR/USD pair this Tuesday, which anyway remained confined to a 50 pips’ range ever since the day started. The greenback closed generally lower across the board, as an uptick in US inflation was not enough to dispel doubts over the next FED’s rate hike. US headline inflation rose from 0.9%YoY to 1.1%YoY in April, beating also expectations, whilst the core reading remained steady at 2.1%. Monthly basis, it came in at 0.4% against previous 0.1%. The dollar initially rallied with the news, as it was the biggest monthly increase in more than three years, but the rally was quickly faded. Also, US manufacturing rose in the same month for the first time in three months, with industrial production up by 0.7%.The EUR/USD fell down to 1.1301, but quickly reversed course and posted a daily high of 1.1348. Now pretty much flat on the day, the 4 hours chart for the pair suggests that the risk remains towards the downside, given that the intraday spike, stalled around the 38.2% retracement of the latest daily bearish run, and that the price is still unable to settle above a bearish 20 SMA although the technical indicators lack enough strength to confirm some directional move. FOMC Minutes to be released this Wednesday can shed some light over the US future, yet as long as above 1.1280, the downward risk of the pair will be limited.
Support levels: 1.1280 1.1240 1.1200
Resistance levels: 1.1340 1.1370 1.1410
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EUR/USD
The American dollar gained ground early Wednesday, with the EUR/USD pair falling down to a fresh 3week low of 1.1255 in the European morning, weighed by news showing that the EU slipped back into deflation in April. The EU preliminary estimate of inflation showed that the CPI fell 0.2% compared to a year before, while monthly basis it came out flat at 0.0%. The pair stabilized then below the 1.1300 level, as investors took a step back ahead of the FOMC Minutes of the April meeting. The document resulted hawkish, as most FED officials saw a rate hike as likely for next June, if data show an improving economy, triggering a dollar rally across the board, and sending the EUR/USD pair to fresh lows.The EUR/USD pair stands a few pips above April’s low of 1.1215, and the technical picture favors a break below the level as in the 4 hours chart, the price is accelerating far below a bearish 20 SMA, whilst the Momentum indicator heads sharply lower below its midline, whilst the RSI also heads south around 25. A break below the mentioned monthly low, can see the pair testing the 1.1160 level during the upcoming sessions, with the main bearish target being 1.1120, a major static support level. Should the decline extend below this last, dollar’s momentum will likely extend in the longer run, with scope to test 1.1000 during the upcoming week.
Support levels: 1.1215 1.1160 1.1120
Resistance levels: 1.1245 1.1280 1.1330
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GBP/USD
The Pound outperformed its major rivals, surging to a fresh 2week high against the greenback and holding on to gains by the end of the day, with the pair trading around 1.4630 after being as high as 1.4663 earlier in the day. The UK currency was underpinned by diminishing fears over a Brexit, and a surprise rebound in spending during April, as Retail Sales came in much betterthanexpected, up by 1.3% monthly basis and by 4.3% from a year before. The pair retraced to 1.4560 intraday, but buyers are firmly defending the upside around it, and given that the pair recovered from around the 61.8% retracement of its latest daily bullish run, the advance has scope now to extend up to 1.4770, this May high. Technical readings in the 4 hours chart support the bullish bias, as they have recovered they upward slopes after correcting overbought conditions, whilst the 20 SMA has extended its advance well above the current level. The line in the sand to buy on dips is 1.4525, the 38.2% retracement of the same rally.
Support levels:1.4560 1.4525 1.4480
Resistance levels: 1.4660 1.4700 1.4735
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