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CURRENCIES TECHNICAL ANALYSIS MAY.1

Euro

 

Sellers tried to refresh lows on Monday. They pushed the euro towards 1.2050, but never reached this handle. The downward pressure partly eased around the level and the major recovered to the 1.2100 region. Sellers returned on Tuesday. The pushed away from the 1.2100 hurdle and sent the rate to the 1.2050. They reclaimed the level in the mid-European session and then continued moving the market towards 1.2000. The resistance resides at 1.2050, the support comes in at 1.2000.

 

If sellers fail to continue their downward trajectory, the currency pair may start a recovery towards 1.2150. However, we consider this scenario as an alternative and expect the single currency to test 1.2000 in the coming sessions.

 

GBP/USD

 

The pound continued to lose value on Tuesday. The night recovery stalled at 1.3767 where sellers regained control. They sent the pound downwards and reached the 1.3700 level in the early European session. The level was broken soon after that and the major extended its decline down to 1.3664. The resistance lies at 1.3700, the support comes in at 1.3600.

 

Sellers are targeted to test the 1.3600 support the loss of which would trigger further weakness towards 1.3500. Meanwhile, the pound may pull back and recover some losses. The area 1.3800 is the possible target for a correction.

 

USD/JPY

 

The US dollar remained well bid on Tuesday. Renewed buying interest helped buyers to leave the sideways range 109.50-109.00. The US dollar broke above the upper limit of the range and continued its rally afterwards heading towards the mark 109.80. The resistance resides at 110.00, the support comes in at 109.50.

 

We believe that the pair will extend its positive bias in the short-term. The technical picture favors an upward extension towards 110.00 now.

 

GBP/JPY

 

The GBP/JPY pair is still bearish. Sellers led the pair to the 150.00 level last week which they are trying to break right now. The level is reinforced by the EMA200 which limits sellers’ advance. The resistance lies at 151.00, the support is at 150.00.

 

If sellers fail to retake the level 150.00, the currency pair may recover to the 151.00 region. If they succeed, the sterling may ease to 149.00 later this week.

 

EUR/JPY

 

The euro recovery stalled at 132.50 when the euro touched the EMA100. The spot found selling rejection after that and dropped to the level 132.00 in the late Asian session. The selling pressure increased in the morning. The pair extended its decline in the early European hours and posted a session low at 131.80. The resistance lies at 132.00, the support is at 131.50.

 

Any increase in selling pressure might force the pair to resume its downward trajectory towards 131.50 where the EMA200 will probably block bears' advance.

 

USD/CAD

 

Buyers failed to reclaim the 1.2900 hurdle. They tried to attack the level several times, however, sellers defended this level pretty well and did not allow buyers even to test this barrier. The USD/CAD pair turned bearish right after unsuccessful attack at the level. The spot declined to 1.2800 where the EMA50 together with the EMA200 stopped its sell-off. The resistance stands at 1.2900, the support is at 1.2800.

 

If sellers remain in the driver’s seat, a close below 1.2800 will trigger further losses towards 1.2700.

 

S&P500

 

Buyers failed to hold onto gains above the mark 2680. The index turned bearish on Monday and started a fresh sell-off. The index returned below the 2670 handle and headed towards 2640 afterwards. Sellers reached the support in the night and held the benchmark over there the first part of Tuesday. The resistance lies at 2670, the support exists at 2640.

 

The sellers' nearest target remains the support level 2640. A break below this handle will indicate an extension of bearish momentum towards 2610.

 

DAX

 

DAX is still neutral/negative trading comfortably between 12600 and 12550. The resistance lies at 12600, the support exists at 12500.

 

The consolidation mode in DAX could continue during Tuesday's US session.

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