The pick of the day is EUR/USD as Mr. Euro dealt with a double blow yesterday. We had poor ZEW data showing that business optimism is on Germany’s shoulder by all the problems in Ukraine. If this wasn’t bad enough, head of German Bunesbank and ECB member said he is in favor of cutting interest rates. On the daily dance floor Mr. Euro grab Ms. USA and danced all the way down breaking the prevailing Ichimoku cloud reaching the 50% Fibonacci level and currently standing right there. Ironically this 50% Fibo levels appears to be the neckline of a double top pattern as well and a break below it could open doors for more losses with 1.3482 and 1.3355 as targets. Failure to break this level would change our outlook back to bullish with, 1.4050 and 1.4245 as next targets.
A quick word with our Japanese followers, このビデオの日本語原稿を用意しておりますので、よければご参照ください。日本語バージョンのビデオレポートは今月中に始まります！
Back to English, Long term traders. Don’t sweat the small losses and look at the big picture. Short term traders, invest responsibly. And if you liked this video, like it, share it and do whatever you want with it until I see you right here tomorrow.
Intraday Forex Technical Levels
GBP/USD: Under Pressure.
Invest Diva likes: Long positions positions above 1.68 with targets @ 1.6814 & 1.6846 in extension.
If pair goes nuts: Below 1.6750 look for further downside with 1.67 as target.
What’s up on the dance floor: The RSI has reached the oversold zone.
Mid-Term Technical Levels
USD/CHF: under pressure
Invest Diva likes: Short positions below 0.8965 with targets @ 0.858 & 0.8275 in extension.
If pair goes nuts: Above 0.8965 look for further upside with 0.915 & 0.938 as targets.
What’s up on the dance floor: The pair is posting a rebound but stands below its resistance.
Supports and resistances:
0.938
0.915
0.8965
0.8892 Last
0.858
0.8275
0.8005
USD/CAD: the upside prevails.
Invest Diva likes: Long positions above 1.07 with targets @ 1.105 & 1.128 in extension.
If pair goes nuts: Below 1.07 look for further downside with 1.044 & 1.0175 as targets.
What’s up on the dance floor: The pair is facing a pull back on its support.
Supports and resistances:
1.146
1.128
1.105
1.0903 Last
1.07
1.044
1.0175
AUD/USD: the upside prevails.
Invest Diva likes: Long positions above 0.912 with targets @ 0.954 & 0.976 in extension.
If pair goes nuts: Below 0.912 look for further downside with 0.89 & 0.865 as targets.
What’s up on the dance floor: The pair has rebounded above a rising trend line and has validated a bullish flag.
Supports and resistances:
0.997
0.976
0.954
0.9397 Last
0.912
0.89
0.865
Commodities
Crude oil: LONG positions above 102 with 102.95 and 103.80 as targets. Stop loss set at 100.84
Gold: LONG positions with targets set at 1390 and 1434 in extension
Alternatively, below 1272, a correction towards 1235 and 1180 would be expected.
Sliver: SHORT positions with 18.20 and 17.20 as targets.
Alternatively, the break above 20.60 would call for a new test of 22.17
NYSE Market Recap
U.S. stocks fell Wednesday afternoon, with the Dow and the S&P 500 coming off recent record highs. Ahead of the open, the government reported wholesale prices increased the most in more than a year in April, with producer prices up 0.6 percent in April. While on the corporate front, Deere declined after cutting its full-year revenue outlook while Macy’s climbed after the retailer reported results and hiked its dividend.
After a five-session streak of gains, the Dow Jones Industrial Average declined 0.3 percent with International Business Machines leading blue-chip losses. The S&P 500 shed 0.3 percent, to just under 1900 and extending declines into a second session. Nasdaq.dropped 0.3 percent.
