The pick of the day is GBP/USD, as Mr. British pound continues to dance in an upward channel against Ms. USA on the daily dance floor. The pair remains above the Ichimoku cloud, rapidly approaching our target at 1.704 but the RSI just touched on the overbought zone this morning. If you have been in the market since we first identified the new uptrend back in March, you could consider getting out of it just about now in case you don’t want to risk a pullback. Otherwise you could stay in and enjoy the ride keeping in mind that there is a possibility that the pair continues to dance up to 1.74. Our next move would be watching out for this market to get saturated.
Now it’s May 1st and Europe is closed for May Day. I’m pretty jealous. On the fundamentals side the UK started the day with better than expected manufacturing PMI. UK mortgage approvals were lower and nationwide house prices were better than expected.
Q&A Friday is tomorrow you guys! If you have a burning forex question you need to be answered, hop on Invest Diva community and ask away.
Intraday Forex Technical Levels
EUR/USD Intraday: the upside prevails
Our preference: Long positions above 1.3845 with targets @ 1.3905 & 1.3935 in extension.
Alternative scenario: Below 1.3845 look for further downside with 1.3815 & 1.3795 as targets.
Comment: The pair stands above its support and remains on the upside.
Supports and resistances:
1.3965
1.3935
1.3905
1.3878 Last
1.3845
1.3815
1.3795
GBP/USD Intraday: the upside prevails.
Our preference: Long positions above 1.6855 with targets @ 1.692 & 1.694 in extension.
Alternative scenario: Below 1.6855 look for further downside with 1.683 & 1.68 as targets.
Comment: The pair stands above its new support and remains on the upside.
Supports and resistances:
1.6955
1.694
1.692
1.6904 Last
1.6855
1.683
1.68
USD/JPY Intraday: the downside prevails.
Our preference: Short positions below 102.5 with targets @ 101.9 & 101.65 in extension.
Alternative scenario: Above 102.5 look for further upside with 102.65 & 102.75 as targets.
Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Supports and resistances:
102.75
102.65
102.5
102.251 Last
101.9
101.65
101.45
USD/CHF Intraday: under pressure.
Our preference: Short positions below 0.881 with targets @ 0.8765 & 0.8745 in extension.
Alternative scenario: Above 0.881 look for further upside with 0.8825 & 0.8845 as targets.
Comment: The pair stands below its resistance and remains under pressure.
Supports and resistances:
0.8845
0.8825
0.881
0.8787 Last
0.8765
0.8745
0.873
NZD/USD Intraday: the upside prevails.
Our preference: Long positions above 0.859 with targets @ 0.8635 & 0.8665 in extension.
Alternative scenario: Below 0.859 look for further downside with 0.857 & 0.854 as targets.
Comment: The pair remains on the upside and is challenging its resistance.
Supports and resistances:
0.869
0.8665
0.8635
0.8618 Last
0.859
0.857
0.854
AUD/USD Intraday: key resistance at 0.9315. |
Our preference: Short positions below 0.9315 with targets @ 0.9265 & 0.9245 in extension.
Alternative scenario: Above 0.9315 look for further upside with 0.935 & 0.938 as targets.
Comment: The pair has struck against its resistance and remains under pressure.
Supports and resistances:
0.938
0.935
0.9315
0.9273 Last
0.9265
0.9245
0.9225
USD/CAD Intraday: rebound
Our preference: Long positions above 1.094 with targets @ 1.101 & 1.105 in extension.
Alternative scenario: Below 1.094 look for further downside with 1.0915 & 1.087 as targets.
Comment: The pair is rebounding above its resistance as the RSI is well directed.
Supports and resistances:
1.107
1.105
1.101
1.0974 Last
1.094
1.0915
1.087
