Happy Monday and first trading day of June!
Another beautiful day in New York and the pick of the day is… [drum roll]
Japanese Yen vs. US dollar or as we call it here at Invest Diva, Mr. Japanese yen and Ms. USA as they dance on the forex dance floor. We claimed last week that the pair has been pretty clueless, and just to prove us wrong, it kick started the weekend with a high jump on Monday.
It seems like the 50% Fibonacci level held the pair from going further down but the pair remains below the Ichimoku cloud, within a falling wedge. We are still awaiting the confirmation of the falling wedge as a continuation pattern to take us back to our previously set targets at 104 and 105. Alternatively a break below 100.3 could change our outlook to bearish with 97.7 and 96 as targets.
Intraday Invest Diva likes long positions above 101.75 with targets at 102.15 & 102.35 in extension.
Long term traders. Don’t sweat the small losses and look at the big picture. Short term traders, invest responsibly. And wait, are we hooked up on the social media? To get the most recent intraday updates, don’t forget to follow Invest Diva on Twitter and Facebook.
Hot Economic Events Recap
The first morning of June kicks of with hot and fresh data from Europe and the U.K., sparking opportunities for forex traders to start the week right.
Mr. Euro’s reaction to the mostly weaker-than-expected manufacturing PMI numbers from Europe started the dance moves in the London session dance floor. Even the better-than-expected read from France (49.6 vs. 49.3 forecast) was no help as it continues to show contractionary conditions. Switzerland also showed a weaker-than-forecast number (52.5 vs. 55.5 forecast but still expansionary), while the U.K. printed inline numbers. The reactions were pretty negative for both Mr. Euro and Mr. Swiss France, but we’re seeing the down moves being faded at the moment to bring’em back to near breakeven.
Intraday Forex Technical Levels
EUR/USD Intraday: under pressure.
Invest Diva likes: Short positions below 1.365 with targets @ 1.3585 & 1.3555 in extension.
If pair goes nuts: Above 1.365 look for further upside with 1.367 & 1.369 as targets.
What’s up on the dance floor: The pair is posting a rebound but stands below its resistance.
Supports and resistances:
1.369
1.367
1.365
1.3614 Last
1.3585
1.3555
1.351
GBP/USD Intraday: the bias remains bullish.
Invest Diva likes: Long positions above 1.6715 with targets @ 1.678 & 1.682 in extension.
If pair goes nuts: Below 1.6715 look for further downside with 1.669 & 1.666 as targets.
What’s up on the dance floor: The pair is rebounding above its support.
Supports and resistances:
1.685
1.682
1.678
1.6749 Last
1.6715
1.669
1.666
USD/CHF Intraday: the upside prevails.
Invest Diva likes: Long positions above 0.8935 with targets @ 0.899 & 0.901 in extension.
If pair goes nuts: Below 0.8935 look for further downside with 0.892 & 0.8895 as targets.
What’s up on the dance floor: The pair is facing a pull back but remains on the upside.
Supports and resistances:
0.9025
0.901
0.899
0.8971 Last
0.8935
0.892
0.8895
NZD/USD Intraday: key resistance at 0.8515.
Invest Diva likes: Short positions below 0.8515 with targets @ 0.8455 & 0.843 in extension.
If pair goes nuts: Above 0.8515 look for further upside with 0.857 & 0.8595 as targets.
What’s up on the dance floor: As long as the resistance at 0.8515 is not surpassed, the risk of the break below 0.8455 remains high.
Supports and resistances:
0.8595
0.857
0.8515
0.8463 Last
0.8455
0.843
0.84
AUD/USD Intraday: the downside prevails.
Invest Diva likes: Short positions below 0.929 with targets @ 0.924 & 0.9205 in extension.
If pair goes nuts: Above 0.929 look for further upside with 0.9315 & 0.933 as targets.
What’s up on the dance floor: As long as the resistance at 0.929 is not surpassed, the risk of the break below 0.924 remains high.
Supports and resistances:
0.933
0.9315
0.929
0.925 Last
0.924
0.9205
0.914
USD/CAD Intraday: bullish bias above 1.082.
Invest Diva likes: Long positions above 1.082 with targets @ 1.0885 & 1.091 in extension.
If pair goes nuts: Below 1.082 look for further downside with 1.078 & 1.073 as targets.
What’s up on the dance floor: A support base at 1.082 has formed and has allowed for a temporary stabilisation.
Supports and resistances:
1.094
1.091
1.0885
1.0864 Last
1.082
1.078
1.073
US Index
S&P500
Long positions above 1914 with targets @ 1926 & 1932 in extension.
Alternative scenario: Below 1914 look for further downside with 1904 & 1894 as targets.
Dow Jones
Long positions above 16630 with targets @ 16770 & 16870 in extension.
Alternative scenario: Below 16630 look for further downside with 16560 & 16465 as targets.
Nasdaq 100
Long positions above 3706 with targets @ 3745 & 3765 in extension.
Alternative scenario: Below 3706 look for further downside with 3688 & 3660 as targets.
Russell 2000 (ICE)
Long positions above 1126 with targets @ 1145 & 1155 in extension.
Alternative scenario: Below 1126 look for further downside with 1116 & 1106 as targets.
