INTRODUCTION:
To have a comprehensive view of the market, one must consider three major compartments:
Fundamental, Sentimental and Technical Analysis. Although, sentimental analysis is rooted in fundamental
yet, it is what drives the market.
FUNDAMENTAL ANALYSIS:
The weak US PMI data on Monday under cuts the dollar and confirms the Fed rate drop bets. However, bulls would rather hold off on making any new wagers until after ECB meeting on Thursday. The US ISM manufacturing PMI fell from 49.2 in April to 48.7 in May. Investors anticipate that the BoE may begin reducing interest rates at its August meeting. On Wednesday, the markets anticipate that the BoC will lower its benchmark lending rate by 0.5 percentage point. Gold price surge as US corporate activity declines, rekindling expectations of a Fed rate decrease. There is optimism for Fed rate cut due to the US economy’s mixed statistics and stable PCE inflation. US Treasury yield decline, prolonging the declines in a row of the greenback. US bond yields decline as market expectations that the Fed will cut rates in September becomes more realistic. the US ISM Manufacturing PMI for May will determine the direction of the US dollar’s next move.
EURUSD ANALYSIS:
From our chart, the market keeps respecting our trendline support and it is currently at our demand zone6@ 1.08854. If this zone is broken, we expect the market to retest our trendline support again at the demand zone5@ 1.08457.
Again, if this demand zone6 holds, we expect the market to push upward to our supply zone0@ 1.09428.
GBPUSD ANALYSIS:
Looking at the chart above, the market is currently at our supply zone2@ 1.28062. If this zone holds, we expect the market to retest our trendline support and probably break the trendline and down to demand zone4@1.26899
Again, if it breaks this zone@1.28062, we expect the market to push further to supply zone1@1.28819.
GBPJPY ANALYSIS:
Looking at our chart, the market respected the supply zone1@200.383. Again, the market has succeeded in breaking the trendline support, so we expect the market to touch our demand zone4@198.827 and if this zone is broken may push further to demand zone3@194.904.
XAUUSD ANALYSIS:
From our chart, gold is currently at a minor trendline resistance. there is also a buy pressure in gold as it is respecting a major trendline support upward. Looking at our chart and the RSI being oversold; we expect gold to retest our trendline support and demand zone4@2309.63 and breaking further may test demand zone3@2276.02.
Since there is a buy pressure in gold, the market may succeed in breaking the trendline resistance and supply zone2@2362.74, may push to retest supply zone1@2442.73
WTI ANALYSIS:
WTI is currently on a sell pressure, It is respecting our trendline resistance downwards. From the chart above, we expect oil to touch our demand zone1@71.411 and if this zone is respected may retrace to retest our trendline resistance. But if the zone breaks, may touch demand zone0@67.943.
CONCLUSION:
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