The US dollar is expected to strengthen against most currencies due to potential strong US data. Central bank meetings (ECB, BOC) and their impact on interest rates will be key factors.
Euro (EUR/USD):
- Euro unchanged against USD on Wednesday.
- German services PMI revised upwards to 54.2 in May, highest in 12 months.
- ECB expected to cut rates by 0.25% on Thursday.
- EUR/USD pressured by expectations of strong US data.
- Support levels: 1.0838, 1.0813
- Resistance levels: 1.0895, 1.0915, 1.0942
- Trading Tips:
- Buy EUR/USD if weak US data is released, targeting 1.0887. Place a stop-loss below 1.0861.
- Sell EUR/USD if strong US data is released and there is a false breakout above 1.0887, targeting 1.0838. Place a stop-loss above 1.0915.
British Pound (GBP/USD):
- GBP/USD unable to break below 1.2779 in the first half of the day.
- Market focused on upcoming US data instead of UK services activity data.
- Strong US data could push GBP/USD down.
- Support levels: 1.2721, 1.2695
- Resistance levels: 1.2779, 1.2810, 1.2853
- Trading Tips:
- Buy GBP/USD if weak US data is released, targeting 1.2823. Place a stop-loss below 1.2762.
- Sell GBP/USD if strong US data is released and there is a false breakout above 1.2779, targeting 1.2721. Place a stop-loss above 1.2810.
Japanese Yen (USD/JPY):
- USD/JPY unable to break lower after reaching 156.60.
- Market awaits US data releases for direction.
- Support levels: 155.44, 154.63
- Resistance levels: 156.38, 156.93, 157.18
- Trading Tips:
- Buy USD/JPY if strong US data is released, targeting 156.93. Place a stop-loss below 155.94.
- Sell USD/JPY if weak US data is released and there is a false breakout above 156.38, targeting 155.44. Place a stop-loss above 156.93.
Australian Dollar (AUD/USD):
- AUD/USD flat after Australian GDP data disappoints.
- RBA likely to hold rates on hold in 2025.
- Support levels: 0.6603, 0.6565
- Resistance levels: 0.6641, 0.6692, 0.6730
- Trading Tips:
- Short AUD/USD if price breaks below support at 0.6641, targeting 0.6565. Place a stop-loss above 0.6692.
Canadian Dollar (CAD/USD):
- USD/CAD rises after Bank of Canada cuts rates by 0.25% to 4.75%.
- BoC expects inflation to continue to decline towards the 2% target.
- Support levels: 1.3665, 1.3631
- Resistance levels: 1.3709, 1.3743
- Trading Tips:
- Buy USD/CAD if price breaks above resistance at 1.3709, targeting 1.3743. Place a stop-loss below 1.3665.
Gold (XAU/USD):
- Gold prices fell yesterday due to weaker inflation expectations.
- Today’s focus is on central bank meetings: Bank of Canada and ECB.
- Support levels: 2335, 2315, 2307, 2276, 2249, 2229, 2206
- Resistance levels: 2345, 2352, 2364, 2395, 2432, 2450, 2500
- Trading Tips:
- Buy XAU/USD if price finds support at 2335, targeting 2345. Place a stop-loss below 2315.
- Sell XAU/USD if price breaks above resistance at 2345, targeting 2364. Place a stop-loss above 2352.
Crude Oil:
- Crude oil price is expected to be weak in the near future, with potential to reach 72.48 with $69.95 and $67.67 as further targets.
- A break above $77.17 would invalidate this bearish scenario.
- Support levels: 72.48, 69.95, 67.67
- Resistance levels: 77.17
- Trading Tips:
- Sell if breaks below current price and continues weakening with strong momentum and volatility, target 69.95.
Categories: Market News
