The markets are volatile and reacting to mixed signals. Keep an eye on upcoming economic data releases, particularly US PCE data, to gauge the direction of the US dollar and other currencies. The US Dollar’s dominance might be waning due to a slowdown in the US economy. The Euro and Pound are showing signs of recovery.

USD:

• The US dollar’s strength might be temporary.
• The US economy grew slower than expected at 1.6% in Q1 compared to 2.5% forecast, while inflation is unexpectedly high at 3.4% (PCE).
• This could lead to the Fed delaying or even reversing rate cuts. EUR/USD is rising as a result.
• Technical indicators: Mixed. EUR/USD is testing support, while GBP/USD is hovering near resistance. USD/JPY is on an upward trend, but faces potential intervention from the Bank of Japan.

EUR:

• The Euro is recovering after positive German consumer confidence data.
• Bulls should not give up yet if the divergence in economic growth between the US and Eurozone narrows.
• Keep an eye on the Personal Consumption Expenditure (PCE) data, the Fed’s preferred inflation gauge.
• Technical indicators: EUR/USD is testing support, but could rebound if the US data disappoints. The pair is currently trading near 1.07 with resistance at 1.0738 and support at 1.0649. A break above resistance could signal further upside potential for the euro.

GBP:

• The British Pound strengthened after the weak US GDP report.
• GBP/USD is expected to move based on US data today, such as trade data and pending home sales.
• A strong performance from the US could put downward pressure on the pound.
• Technical indicators: GBP/USD is hovering near resistance. A break above resistance could signal further gains for the pound. The pair is trading near 1.24 with resistance at 1.2544 and support at 1.2412. Watch for US GDP data to determine the direction of GBP/USD.

JPY:

• The Japanese Yen continues to weaken against the USD.
• The Bank of Japan (BoJ) is expected to maintain its accommodative policy, keeping the USD/JPY pair attractive.
• Technical indicators: USD/JPY is on an upward trend, but intervention from the Bank of Japan is a risk. The pair is trading near 155.6 with resistance at 155.96 and support at 154.13. A strong showing from the US economy could push the pair higher.

Gold:

• Gold prices are trading in a short-term downtrend.
• A break above resistance at 2346 could indicate a continuation of the correction.
• Otherwise, a pullback to the support level of 2,312 might be a buying opportunity.
• Technical indicators: Mixed. There are opportunities for both buying and selling gold depending on the price action.

Oil:

• Oil prices are in a short-term uptrend.
• Bulls may consider buying near the support zone of 82.06 – 81.57.
• A break below the April 22nd low could signal a potential short trade.
• Technical indicators: Oil is in a short-term bullish trend. There could be buying opportunities near support levels.

BTC:

• Bitcoin is currently showing signs of exhaustion after failing to continue its uptrend.
• A break above 63,600 could indicate a bullish continuation, while a breakdown below 63,000 could lead to a deeper correction.
• Technical indicators: Mixed. There are opportunities for both buying and selling Bitcoin depending on the price action.

ETH:

• Ethereum is following a similar pattern to Bitcoin.
• A decline in sub-wave of the correction is expected, with potential support at 2907.00.
• Technical indicators: Mixed. There are opportunities for both buying and selling Ethereum depending on the price action.

XRP:

• XRP is expected to fall  to a low of 0.461.
• Technical indicators: XRP is showing bearish signals.

Important Events to Watch Today:

• US Personal Consumption Expenditure (PCE) data release
• US trade data release
• US pending home sales data release