The ECB warned about possible financial instability due to geopolitical tensions and upcoming elections, but the overall threat has lessened compared to six months ago. The Eurozone is showing signs of recovery, prompting the ECB to signal a rate cut next month. The US dollar weakened on expectations of a Fed rate cut due to a drop in US inflation.pen_spark
Euro (EUR):
- The euro is currently trading near support at 1.0861.
- A drop in US CPI on Wednesday raised expectations of a Fed rate cut, weakening the US dollar and strengthening the euro.
- The ECB plans to lower interest rates next month, but has not provided any hints about rate plans after June.
- Technical analysis:
- There is support at 1.0861 and resistance at 1.0909 and 1.0934.
- Buy signals exist if the price reaches 1.0883 with a target of 1.0920. Stops should be placed below 1.0858.
- Sell signals exist if the price reaches 1.0858 with a target of 1.0825. Stops should be placed above 1.0883.
British Pound (GBP):
- The pound is currently trading near support at 1.2648.
- Similar to the euro, the pound strengthened against the US dollar on expectations of a Fed rate cut.
- The absence of UK data today could lead to increased volatility later in the day.
- Technical analysis:
- There is support at 1.2643 and resistance at 1.2671 and 1.2734.
- Buy signals exist if the price falls below 1.2643 and rebounds, with a target of 1.2671. Stops should be placed below 1.2615.
- Sell signals exist if the price reaches 1.2671 with a target of 1.2615. Stops should be placed above 1.2734.
Japanese Yen (JPY):
- The USD/JPY pair is currently trading near resistance at 155.38.
- The Japanese yen strengthened earlier today after a disappointing GDP report, but has since pared most of those gains.
- US inflation data is expected later today, and a strong report could lead to further strengthening of the USD/JPY pair.
- Technical analysis:
- There is support at 153.51 and resistance at 155.38 and 156.08.
- Buy signals exist if the price falls below 154.21 and rebounds, with a target of 155.80. Stops should be placed below 153.84.
- Sell signals exist if the price reaches 155.15 with a target of 153.84. Stops should be placed above 156.08.
Australian Dollar (AUD):
- The Australian dollar is currently trading at 0.6671.
- The AUD strengthened earlier today after a drop in US CPI raised expectations of a Fed rate cut.
- Australian employment data showed a rebound in job growth, but the unemployment rate also rose.
- Technical analysis:
- There is support at 0.6670 and 0.6645 and resistance at 0.6720 and 0.6745.
Gold (XAU):
- Gold prices are expected to continue their short-term uptrend.
- Buy signals exist if the price reaches support at 2347 – 2342 or 2322 – 2314, with a target of 2396. Stops should be placed according to the pattern rules.
Crude Oil:
- Oil prices may continue their correction today.
- Sell signals exist if the price reaches resistance at 79.99 – 79.66, with a target of 76.44. Stops should be placed according to the pattern rules.
Bitcoin (BTC):
- Bitcoin’s price is expected to continue rising towards the high at 67,231.19.
- Buy signal at 65,753.74, with a take profit target of 67,231.19.
Ethereum (ETH):
- Ethereum’s price may be heading for the high of 3,216.94.
- Buy signal at 3,012.13, with a take profit target of 3,216.94
Ripple (XRP):
- Bearish. The price is expected to decline further towards the target of 0.473.
- Sell signal at 0.514, with a take profit target of 0.473
Important Events Today:
- US Initial Jobless Claims
- Philadelphia Fed Manufacturing Index
- Existing Home Sales
- Non Farm Payroll will be released today
Categories: Market News
