Daily Technical Analysis By XtreamForex
GBP/USD: GBP/USD pair is on a minor-recovery mode in mid-Asia
The pair bottomed at 1.2450 this Thursday, now the immediate support, although a more relevant one comes at 1.2410, and only below this last the pair can gain bearish momentum.
GBP/USD Technical Forecast
Day’s Range: 1.2447 - 1.2477
Support levels: 1.2452| 1.2438| 1.2415
Resistance levels: 1.2498| 1.2512| 1.2535
EUR/USD: Has Euro lost its funding currency status?
the EUR/USD pair hardly moved following the US attack on the Syrian targets. The common currency has been referred to as a new funding currency, ever since the ECB hit the zero lower bound and started the QE program back in 2014/15.
EUR/USD Technical Forecast
Day’s Range: 1.0633 - 1.0660
Support levels: 1.0630| 1.0616| 1.0593
Resistance levels: 1.0676| 1.0690| 1.0713
GBP/USD: Will the post-Fed recovery sustain ahead of UK services PMI?
Having found fresh bids once again near 1.2860 region in Asia opening trades, the GBP/USD pair kept its steady recovery mode intact, with the bulls regaining the bids heading into the all-important UK services PMI report due on the cards later today.
Currently, the spot remains in the lower bound of this week’s 100-pips trading range, in response to a solid comeback staged by the US dollar across the board, following the overnight FOMC outcome.
The shorter-duration treasury yields rocketed, as June Fed rate hike bets swelled after the Fed noted that the Q1 GDP weakness was transitory, while adding that inflation is running close to 2% goal. The Fed also acknowledged the continued improved in the labor market.
Moreover, the spot remained under pressure and failed to hold the 1.29 handle a day before, as renewed concerns over the Brexit deal weighed on the GBP. EU’s Chief Brexit negotiator Barnier delivered the EU-Brexit directives yesterday, noting that Brexit will have legal and human consequences.
In the day ahead, it remains to be seen if the major can extend the recovery beyond 1.29 handle, should the UK services PMI data deliver a positive surprise, especially after the UK manufacturing and construction PMI reading surprised markets to the upside. Also, the US jobless claims, trade balance and factory orders data will be eyed for further momentum.
GBP/USD Levels to consider
A break above 1.2900 (5-DMA/ round number) could lift the pair above 1.2955 (May 1 high), beyond which a test of 1.2970 (7-month tops) is imminent. Conversely, a break below 1.2862/61 (daily & previous lows), leading to a subsequent break below 1.2835/34 (classic S1/ Apr 27 low) is likely to drag the pair towards testing its next support near 1.2800 (key support).
IMF says Asia facing risks from rise in protectionism
SINGAPORE (Reuters) – The International Monetary Fund said Asia’s economic outlook faces “significant” uncertainty and downside growth risks from any sudden tightening in global financial conditions or rise in protectionist trade policies.
The IMF, which in April raised its 2017 Asia-Pacific growth forecast to 5.5 percent from its previous October forecast of 5.4 percent, said loose monetary and fiscal policies across most of the region would underpin domestic demand.
“However, the near-term outlook is clouded with significant uncertainty, and risks, on balance, remain slanted to the downside,” the IMF said in its Asia-Pacific regional economic outlook released on Tuesday.
In April, the IMF kept the region’s 2018 growth forecast unchanged at 5.4 percent. Asia-Pacific recorded 5.3 percent growth in 2016.
The report comes at a time when policymakers around the region are wrestling with the challenge of how to navigate rising risks of protectionism under U.S. President Donald Trump, and a potential increase in funding costs as the Federal Reserve steps up the pace of rate hikes.
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EUR/USD
Technical Overview:
Prev. Close 1.1211
Open 1.1211
Day?s Range 1.1205 - 1.1216
52 wk Range 1.0538 - 1.1616
1-Year Return - 0.04%
Support and Resistance:
Daily Camarilla Technical analysis shows that, the EUR/USD pair may finds the immediate support at 1.1207 below which 1.1203 and 1.1199 could be tested. On the other side the immediate resistance 1.1215 and may go for further test 1.1219. A break beyond the last, doors will open for a test of 1.1223.
Technical Indication: Strong Sell
GBP/USD
Technical Overview:
Prev. Close 1.2836
Open 1.2836
Day?s Range 1.2829 - 1.286
52 wk Range 1.2796 - 1.5513
1-Year Return - 15.4%
Support and Resistance:
Daily Camarilla Technical analysis shows that GBP/USD pair finds the immediate support is placed at 1.2831 below which 1.2819 and 1.2806 could be tested. On the other side the immediate resistance 1.2855. A break beyond the last, doors will open for a test of 1.2867 and from there to 1.2880.
Technical Indication: Strong Sell
USD/JPY
Technical Overview:
Prev. Close 101.64
Open 101.64
Day?s Range 101.58 - 102.21
52 wk Range 99.08 - 123.69
1-Year Return - 14.91%
Support and Resistance:
Daily Camarilla Technical analysis shows USD/JPY pair may finds the immediate support at 101.59 below which 101.55 and 101.50 could be tested. On the other side the immediate resistance 101.69. A break beyond the last, doors will open for a test of 101.73 and from there to 101.78.
Technical Indication: Strong Buy
USD/CAD
Technical Overview:
Prev. Close 1.3120
Open 1.3120
Day?s Range 1.3111 - 1.3133
52 wk Range 1.2458 - 1.4692
1-Year Return - 0.23%
Support and Resistance:
Daily Camarilla Technical analysis shows USD/CAD pair may finds the immediate support at 1.3112 below which 1.3104 and 1.3097 could be tested. On the other side the immediate resistance 1.3126. A break beyond the last, doors will open for a test of 1.3134 and from there to 1.3141.
Technical Indication: Strong Buy