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28 May 2015, 19:38 UTC+00
USD/JPY is expected to consolidate with bullish bias after hitting almost an 8-year high of 124.09 on Wednesday. USD/JPY is underpinned by the positive dollar sentiment on expectations that the Fed would increase interest rates later this year. USD/JPY is supported by the higher shorter-dated US Treasury yields, demand from Japan's importers, and the Bank of Japan's ultra-loose monetary policy as well. The pair is also boosted by reduced safe-haven appeal of the yen and the yen-funded carry trades as global risk sentiment improved.
28 May 2015, 19:33 UTC+00
USD/CHF is expected to consolidate in a lower range after hitting almost a monthly high of 0.9545 on Wednesday. It is undermined by the franc demand on cross trades versus major currencies. But USD/CHF losses are tempered by the positive dollar sentiment, the negative Swiss interest rates, and the threat of the Swiss National Bank to carry out CHF-selling intervention.
28 May 2015, 19:25 UTC+00
NZD/USD is expected to trade in a higher range after hitting the 2.5-month low of 0.7208 on Wednesday. The kiwi sentiment is boosted after Fonterra said it will pay its 10,600 farmer shareholders NZ$5.25 per kilo of milk solids for the season starting June 1 versus downwardly revised NZ$4.40 (from prior forecast of NZ$4.50) for the season ending May 31. NZD/USD is also supported by the kiwi demand on the buoyant NZD/JPY cross amid reduced risk aversion and kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the positive dollar sentiment, soft dairy prices, and speculation that the RBNZ would cut interest rate in the coming months.
28 May 2015, 19:17 UTC+00
GBP/JPY is expected to trade in a higher range. It is underpinned by the improved euro sentiment as Greece worries subside and reduced safe-haven appeal of the yen amid better investor risk appetite and demand from Japan's importers. But GBP/JPY gains are tempered by the Japanese exports.
28 May 2015, 17:55 UTC+00
Strong bullish momentum in a high volume is observed on the market. We can observe broken supply trendline and strong price action. My advice is to watch for potential buying opportunities on dips. Resistance levels are at the levels of 1.5285 and 1.5400.
28 May 2015, 17:40 UTC+00
Gold has been trading sideways around the level of $1,186.00. The short-term trend is neutral. I found strong trading range between the levels of $1,192.00 and $1,183.00. I am waiting for a clear breakout with strong volume to confirm further direction.
28 May 2015, 15:30 UTC+00
NZD/CAD broke above 23.6% Fibonacci entering bulls' area.
Mourad El Keddani
28 May 2015, 14:34 UTC+00
The GBP/USD pair moved from 1.5395 to 1.5319; the market opened at 1.5325. The downtrend represents the double bottom of the channel emerging at the level of 1.5325. It is equally important that the RSI has still been negative in the daily time frame. So, it calls for a new downward movement. Therefore, the price movement will be moved between the levels of 1.5330 and 1.5189 (50% Fibonacci retracement levels in H4 chart). Moreover, the pair has already formed major resistance at the level of 1.5395. The price was set below this level a day ago. The market will indicate a bearish opportunity at the level of 1.5330 with the first target at 1.5275.
Mourad El Keddani
28 May 2015, 14:20 UTC+00
The USD/CAD pair has already formed a strong support at the level of 1.2351. The same level is coinciding with a ratio of 50% Fibonacci retracement levels. It should be noticed that minor support will be set at the level of 1.2453 around the 61.8% Fibonacci retracement levels in the H4 chart. The price of the USD/CAD pair has moved between 1.2450 and 1.2570. The price moved higher to 1.2490 and turned lower. So, we expect a range about 257 pips this week. Additionally, the RSI and moving average (75) are still calling for an uptrend.
28 May 2015, 13:33 UTC+00
The immediate downward impulsive wave progression had been invalidated due to wave one and wave two overlap. The current count incorporates the new price action into new, slightly changed labeling. According to this new count, the market is at a crucial level right now. The recent drop might still be counted as a five-wave decline to the level of 133.09. So, an upward rally would be a corrective cycle that has been labeled as abc pattern ending into the Fibonacci zone between the levels of 135.47 - 135.67. This would be an ideal level for the market to resume the downtrend and a breakout below the weekly pivot point. On the other hand, any further rally continuation above the level of 135.66 will be considered bullish. There is a possibility that the recent high at the level of 136.95 might be tested soon. The near-term to mid-term outlook is still bearish and only a sustained breakout above the recent local swing high would be considered to be a bias change to bullish.
28 May 2015, 13:29 UTC+00
Resistance is being rejected, oscillator formed a bearish divergence.
28 May 2015, 12:23 UTC+00
Diminishing momentum in this market shows that the recent up leg to the level of 1.2491 is just a part of a corrective cycle wave b purple and the market should continue to move lower in leg c purple soon. Two possible target levels for this sub-wave were projected on the intraday chart: one is a zone between the levels of 1.2356 - 1.2375 and the other is support at the level of 1.2321. Please notice the corrective cycle in wave 2 blue might get more complex and time-consuming than a simple abc irregular corrective cycle.
28 May 2015, 12:02 UTC+00
The US Dollar Index is reversing lower as expected. I have turned neutral about the dollar in the short term as the price has made an extended impulsive move higher that reached important resistance levels. A pullback towards 96 is justified. However, my long-term view remains bullish targeting at 101-102.
28 May 2015, 11:57 UTC+00
Gold price is above short-term support at $1,180-85 and we might see an upward pullback towards $1,200. Gold price has been mainly trading within a range of $1,220-$1,180 for some time now. As long as I do not see a weekly close outside of this range, I will remain neutral.
28 May 2015, 11:54 UTC+00
Technical analysis and trading recommendations for EUR/USD for May 28, 2015. The EUR/USD pair dropped to 1.0818 yesterday before pulling back sharply.