EURUSD
The positive sentiment in equity markets led to the selling of the safe-haven US Dollar (USD), supporting the major currency pair. The USD was further weakened by the disappointing Empire State Manufacturing Index, which dropped significantly to -31.8 in May from April's reading of 10.8. Additionally, the decline in the Michigan Consumer Sentiment Index contributed to the USD's weakness.
The USD was also affected by declining US Treasury bond yields due to the government's borrowing limit standoff. US President Joe Biden expressed optimism about reaching a deal on the borrowing limit
From a technical standpoint, the recovery after the 1.0850 level may take the pair more toward the last support of 1.0900, and after it the 1.0940. The 100MA on the Daily chart held as expected and played a strong support level as is the case for the DXY.
Key resistance levels to monitor for potential upward movements in the EURUSD pair are located at 1.0900, 1.0940, and 1.0960. Conversely, significant support levels to keep an eye on for potential downward movements are situated at 1.0850, 1.0800, and 1.0770.
Support 1.0850, 1.0800, and 1.0770..
Resistance 1.0900, 1.0940, and 1.0960
USDJPY
The USD/JPY pair is facing selling pressure and has ended a three-day winning streak. It is currently trading just below 136.00, down nearly 0.20% for the day.
The decline is attributed to a weaker tone in equity markets, prompting investors to seek the safe-haven Japanese Yen (JPY). Concerns about a global economic slowdown, reinforced by weaker-than-expected Chinese macro data, have also dampened investor appetite for riskier assets.
Additionally, the standoff over the US government's borrowing limit and the expectation of higher interest rates by the Federal Reserve have contributed to a defensive stance among USD bulls. On the other hand, the Bank of Japan has indicated that it is not yet considering an exit from its massive stimulus program. This policy divergence between the Fed and the BoJ suggests that significant gains for the JPY are unlikely, supporting the possibility of dip- buying around the JPY. It is advisable to wait for further selling confirmation before concluding that spot pirce have reached a top.
The current resistance levels to watch are 136.20, 138.00, and 137.50, while the support levels are 135.50, 135.00, and 134.50.
Support 135.50, 135.00, and 134.50
Resistance 136.20, 138.00, and 137.50
GBPUSD
During Tuesday's European morning, GBP/USD dropped below 1.2500. UK data revealed that the ILO Unemployment Rate rose to 3.9% in March, while wage inflation including bonus remained unchanged at 5.8%.
GBP/USD faced continued bearish pressure last week as the USD benefited from safe-haven demand. The cautious approach of the Bank of England (BoE) towards raising interest rates and optimistic remarks from Governor Andrew Bailey regarding inflation added to the downward pressure on the British Pound. The BoE's recent upward revisions to growth and inflation forecasts suggest a potential risk of sustained inflation, which could lead to further tightening of monetary policy.
The current resistance levels to watch are 1.2550, 1.2580, and 1.2620, while the support levels are 1.2500 1.2470 1.2400.
Support 1.2500 1.2470 1.2400.
Resistance 1.2550, 1.2580, and 1.2620
XAUUSD
The price of gold (XAU/USD) has declined, reaching an intraday low around
$2005.00. This drop is due to the cautious market sentiment ahead of the US Retail Sales data for April and the US debt ceiling talks scheduled for 19:00 GMT. The US Dollar Index (DXY) has gained ground, reaching an intraday high near 102.50, as investors are concerned about the possibility of a US default and are anxious about the upcoming key US data.
The comments from US House Speaker McCarthy, expressing concerns about the deadlock on the US debt ceiling extension, have provided support to the US Dollar. Additionally, weak data from China, one of the major consumers of gold, is also weighing on XAU/USD. The Federal Reserve's reluctance to abandon its hawkish stance, combined with fears of a recession and banking issues, is further pressuring the gold price. S&P 500 Futures have declined slightly, reflecting market indecision and the anticipation of important data/events for clearer direction.
In the near term, gold price is expected to remain under pressure due to the risk- off sentiment in the market ahead of the US Retail Sales data for April. The outcome of talks between US President Biden and House Speaker McCarthy to avoid debt expiration will also be crucial as the deadline for a US default looms, which has been recently brought forward to the first week of June.
Technically the 100MA on the 4H chart is playing support holding the price from breaking the 2000 level. any breakout will take the price toward the 1995 target. A formation of a descending triangle is confirmed on Gold signaling a possible bearish movement is coming and may declare a new selling off on the yellow metal.The current resistance levels to watch are 2020, 2037, and 2050, while the support levels are 2000, 1995, and 1980.
Support 2000, 1995, and 1980
Resistance 2020, 2037, and 2050
DAX 40
European shares are expected to open slightly below parity on Tuesday, reflecting the cautious sentiment in global markets due to ongoing debt ceiling talks in Washington to avoid a potential default.
Telecoms stocks may attract attention following Vodafone's announcement of 11,000 job cuts over three years as part of its plan to streamline operations.
Economic data releases include preliminary growth numbers for the eurozone, inflation figures for Italy, jobless data for Britain, and the crucial German economic sentiment ZEW survey. Analysts anticipate no surprises in the eurozone GDP data, with expectations that the modest growth seen in the fourth quarter has not accelerated. The focus will be on the German ZEW survey for May, as the economic situation was considered relatively negative in the previous month. Weakness in Germany, the largest economy in the eurozone, is a concern for market bulls, particularly in light of the ongoing struggles of Asia's largest economy and its impact on global trade.
DAX keeps moving in a narrow range of price not able to go beyond the 16000 level. The down parallel of the long bullish channel is still working as support for the price, waiting for more developments.15900. 15800. and 15700 are the next support levels to watch. On the resistance side, the 16000-16100 and 16270 levels are the next resistance levels to watch for the Dax to reach its historically high level.
Support 15900. 15800. and 15700
Resistance 16000, 16100 and 16270
The positive sentiment in equity markets led to the selling of the safe-haven US Dollar (USD), supporting the major currency pair. The USD was further weakened by the disappointing Empire State Manufacturing Index, which dropped significantly to -31.8 in May from April's reading of 10.8. Additionally, the decline in the Michigan Consumer Sentiment Index contributed to the USD's weakness.
The USD was also affected by declining US Treasury bond yields due to the government's borrowing limit standoff. US President Joe Biden expressed optimism about reaching a deal on the borrowing limit
From a technical standpoint, the recovery after the 1.0850 level may take the pair more toward the last support of 1.0900, and after it the 1.0940. The 100MA on the Daily chart held as expected and played a strong support level as is the case for the DXY.
Key resistance levels to monitor for potential upward movements in the EURUSD pair are located at 1.0900, 1.0940, and 1.0960. Conversely, significant support levels to keep an eye on for potential downward movements are situated at 1.0850, 1.0800, and 1.0770.
Support 1.0850, 1.0800, and 1.0770..
Resistance 1.0900, 1.0940, and 1.0960
USDJPY
The USD/JPY pair is facing selling pressure and has ended a three-day winning streak. It is currently trading just below 136.00, down nearly 0.20% for the day.
The decline is attributed to a weaker tone in equity markets, prompting investors to seek the safe-haven Japanese Yen (JPY). Concerns about a global economic slowdown, reinforced by weaker-than-expected Chinese macro data, have also dampened investor appetite for riskier assets.
Additionally, the standoff over the US government's borrowing limit and the expectation of higher interest rates by the Federal Reserve have contributed to a defensive stance among USD bulls. On the other hand, the Bank of Japan has indicated that it is not yet considering an exit from its massive stimulus program. This policy divergence between the Fed and the BoJ suggests that significant gains for the JPY are unlikely, supporting the possibility of dip- buying around the JPY. It is advisable to wait for further selling confirmation before concluding that spot pirce have reached a top.
The current resistance levels to watch are 136.20, 138.00, and 137.50, while the support levels are 135.50, 135.00, and 134.50.
Support 135.50, 135.00, and 134.50
Resistance 136.20, 138.00, and 137.50
GBPUSD
During Tuesday's European morning, GBP/USD dropped below 1.2500. UK data revealed that the ILO Unemployment Rate rose to 3.9% in March, while wage inflation including bonus remained unchanged at 5.8%.
GBP/USD faced continued bearish pressure last week as the USD benefited from safe-haven demand. The cautious approach of the Bank of England (BoE) towards raising interest rates and optimistic remarks from Governor Andrew Bailey regarding inflation added to the downward pressure on the British Pound. The BoE's recent upward revisions to growth and inflation forecasts suggest a potential risk of sustained inflation, which could lead to further tightening of monetary policy.
The current resistance levels to watch are 1.2550, 1.2580, and 1.2620, while the support levels are 1.2500 1.2470 1.2400.
Support 1.2500 1.2470 1.2400.
Resistance 1.2550, 1.2580, and 1.2620
XAUUSD
The price of gold (XAU/USD) has declined, reaching an intraday low around
$2005.00. This drop is due to the cautious market sentiment ahead of the US Retail Sales data for April and the US debt ceiling talks scheduled for 19:00 GMT. The US Dollar Index (DXY) has gained ground, reaching an intraday high near 102.50, as investors are concerned about the possibility of a US default and are anxious about the upcoming key US data.
The comments from US House Speaker McCarthy, expressing concerns about the deadlock on the US debt ceiling extension, have provided support to the US Dollar. Additionally, weak data from China, one of the major consumers of gold, is also weighing on XAU/USD. The Federal Reserve's reluctance to abandon its hawkish stance, combined with fears of a recession and banking issues, is further pressuring the gold price. S&P 500 Futures have declined slightly, reflecting market indecision and the anticipation of important data/events for clearer direction.
In the near term, gold price is expected to remain under pressure due to the risk- off sentiment in the market ahead of the US Retail Sales data for April. The outcome of talks between US President Biden and House Speaker McCarthy to avoid debt expiration will also be crucial as the deadline for a US default looms, which has been recently brought forward to the first week of June.
Technically the 100MA on the 4H chart is playing support holding the price from breaking the 2000 level. any breakout will take the price toward the 1995 target. A formation of a descending triangle is confirmed on Gold signaling a possible bearish movement is coming and may declare a new selling off on the yellow metal.The current resistance levels to watch are 2020, 2037, and 2050, while the support levels are 2000, 1995, and 1980.
Support 2000, 1995, and 1980
Resistance 2020, 2037, and 2050
DAX 40
European shares are expected to open slightly below parity on Tuesday, reflecting the cautious sentiment in global markets due to ongoing debt ceiling talks in Washington to avoid a potential default.
Telecoms stocks may attract attention following Vodafone's announcement of 11,000 job cuts over three years as part of its plan to streamline operations.
Economic data releases include preliminary growth numbers for the eurozone, inflation figures for Italy, jobless data for Britain, and the crucial German economic sentiment ZEW survey. Analysts anticipate no surprises in the eurozone GDP data, with expectations that the modest growth seen in the fourth quarter has not accelerated. The focus will be on the German ZEW survey for May, as the economic situation was considered relatively negative in the previous month. Weakness in Germany, the largest economy in the eurozone, is a concern for market bulls, particularly in light of the ongoing struggles of Asia's largest economy and its impact on global trade.
DAX keeps moving in a narrow range of price not able to go beyond the 16000 level. The down parallel of the long bullish channel is still working as support for the price, waiting for more developments.15900. 15800. and 15700 are the next support levels to watch. On the resistance side, the 16000-16100 and 16270 levels are the next resistance levels to watch for the Dax to reach its historically high level.
Support 15900. 15800. and 15700
Resistance 16000, 16100 and 16270
