A quiet day expected in the Forex market due to the US Memorial Day holiday. The US dollar may be weaker due to the lack of US data this week. Mixed signals for major currencies, with EUR/USD and GBP/USD potentially finding support while USD/JPY could see upward pressure. Gold and Bitcoin remain bearish. Crude Oil may see some volatility.

Euro (EUR):

  • Current: Steady around 1.0849.
  • Euro steady: The German Ifo Business Climate stagnated, and US markets are closed, leading to a quiet day for the Euro.
  • Technical analysis: Resistance at 1.0886 and 1.0925, support at 1.0845 and 1.0806.
  • Trading strategy: Look for buying opportunities above 1.0877 with a target of 1.0920. Consider selling below 1.0853 with a target of 1.0815.
  • Forecast: EUR/USD may see choppy trading within a channel. Upside potential limited by lack of strong fundamentals, , but data from the eurozone’s inflation report on Friday could impact the direction. Watch ECB meeting on June 6th for rate cut decision.


British Pound (GBP):

  • Current: Trading near 1.2755.
  • Pound strengthens: GBP/USD is testing the monthly high, potentially due to a lack of US data.
  • Technical analysis: Resistance at 1.2755 and 1.2806, support at 1.2716 and 1.2677.
  • Trading strategy: Look for buying opportunities above 1.2767 with a target of 1.2806. Consider selling only after a confirmed breakout above 1.2756.
  • Forecast: GBP/USD may see rangebound trading with a slight upward bias. Confirmation needed for a sustained breakout.


Japanese Yen (JPY):

  • Current: Trading at 156.85.
  • Yen drifts: The Bank of Japan (BoJ) remains cautious on raising rates despite slowing inflation.
  • Technical analysis: Resistance at 157.69 and 158.37, support at 156.59 and 155.91.
  • Trading strategy: No strong buying signals. Consider selling USD/JPY after a confirmed breakout above 157.69 with a target of 156.59.
  • Forecast: USD/JPY may see muted trading with a slight downward bias. BoJ expected to be cautious on rate hikes.


Gold (XAU):

  • Current: Trading at 2,334.
  • Gold under pressure: Bears are in control, targeting support levels.
  • Technical Analysis: Bearish momentum, short-term support at 2,330 and 2,323. Resistance at 2,370 and 2,375.
  • Trading strategy: Look for buying opportunities above $2,335 with a target of $2,370. Avoid buying below $2,330.
  • Forecast: Gold may continue its decline in the near term. Watch for a break below 2,330 for further downside potential.


Crude Oil:

  • Current: Trading above the 20 EMA.
  • Technical analysis: Needs to hold above $76.15 to avoid a decline towards $78.03.
  • Forecast: Crude Oil may experience choppy trading with a possible downward bias towards $76.15. A break above $78.03 could indicate a move towards higher resistance.


Bitcoin and Ethereum:

  • Bitcoin: Bearish momentum, potential for a decline towards 65,756 on the hourly chart.
  • Ethereum: Since the analysis for major currencies suggests a cautious market, Ethereum might also see a similar trend.


Watch Out For:

  • Focus on upcoming economic data releases: Eurozone inflation data on Friday (expected to be 2.5% y/y) could impact EUR/USD.
  • Central bank meetings: ECB meeting on June 6th is crucial for the euro’s direction.
  • Geopolitical tensions: Keep an eye on any developments that could impact risk sentiment and currency markets.
Categories: Market News

Leave a Reply