Sample Category Title

Pivot (invalidation): 6.0390

Our preference Long positions above 6.0390 with targets at 6.0660 & 6.0890 in extension.

Alternative scenario Below 6.0390 look for further downside with 6.0180 & 6.0000 as targets.

Comment The RSI has just landed on its neutrality area at 50% and is turning up.

Pivot (invalidation): 0.6890

Our preference Long positions above 0.6890 with targets at 0.6935 & 0.6950 in extension.

Alternative scenario Below 0.6890 look for further downside with 0.6870 & 0.6850 as targets.

Comment The RSI calls for a rebound.

Pivot (invalidation): 1.3455

Our preference Short positions below 1.3455 with targets at 1.3415 & 1.3395 in extension.

Alternative scenario Above 1.3455 look for further upside with 1.3470 & 1.3490 as targets.

Comment The immediate trend remains down and the momentum is strong.

Pivot (invalidation): 1.0095

Our preference Long positions above 1.0095 with targets at 1.0125 & 1.0145 in extension.

Alternative scenario Below 1.0095 look for further downside with 1.0080 & 1.0070 as targets.

Comment The RSI is bullish and calls for further upside.

Pivot (invalidation): 110.00

Our preference Long positions above 110.00 with targets at 110.30 & 110.55 in extension.

Alternative scenario Below 110.00 look for further downside with 109.75 & 109.55 as targets.

Comment The RSI is bullish and calls for further upside.

Pivot (invalidation): 1.2760

Our preference Short positions below 1.2760 with targets at 1.2710 & 1.2690 in extension.

Alternative scenario Above 1.2760 look for further upside with 1.2780 & 1.2805 as targets.

Comment As Long as the resistance at 1.2760 is not surpassed, the risk of the break below 1.2710 remains high.

Pivot (invalidation): 1.1180

Our preference Short positions below 1.1180 with targets at 1.1140 & 1.1120 in extension.

Alternative scenario Above 1.1180 look for further upside with 1.1200 & 1.1220 as targets.

Comment As Long as 1.1180 is resistance, look for choppy price action with a bearish bias.

The Australian dollar jumped today after a surprise election victory by the conservatives. The Prime Minister’s party defied polls to win more than 77 seats in Parliament. In response to the election, Labor Party leader Bill Shorten resigned. Conservatives won because the campaign focused on boosting the country’s economy while Labor focused on climate change. The country holds elections every three years but because of infighting, no Prime Minister has served a full term since 2007.

The price of crude oil rose sharply after OPEC indicated that it will maintain current supply cuts. In a statement, the Saudi Energy Minister, Khalid al-Falih said that there was consensus among OPEC members to reduce supply gently. The same statement was repeated by the United Arab Emirates energy minister. In response to this, Brent and West Texas Intermediate (WTI) rose by 1.3% during the Asian session. In addition, investors reacted to a Trump tweet on Iran. The tweet said that a conflict would be the ‘official end’ of Iran. Saudi said that it would respond to Iran provocations with ‘all strength’.

The Japanese yen declined against the USD even after better-than-expected economic numbers. In the first quarter, the economy expanded by 2.1%, which was better than the expected contraction of -0.2%. On a QoQ basis, the economy grew by 0.5%. The GDP price index rose by 0.2% in line with expectations. In the quarter, the GDP external demand rose by 0.4%, which was higher than the expected growth of 0.3%. The capital expenditure declined by -0.3%, topping the expected decline of -1.7%.

EUR/USD

The EUR/USD pair declined to an intraday low of 1.1150, which was the lowest level since May 3. On the hourly chart below, this price is below the 25-day and 50-day moving averages. The 14-day RSI declined to almost the oversold level, while the price is along the lower line of the Bollinger Bands. Today, with no major economic data expected, there is a likelihood that the price will continue to decline, with the target being 1.1100.

USD/JPY

The USD/JPY pair rose today after Japanese economic numbers. The pair rose to a high of 110.30, which is above the 50-day and 25-day moving averages. On the hourly chart, the price was close to the 50% Fibonacci Retracement level. The RSI has remained close to the overbought level of 70. Therefore, there is a likelihood that the pair will continue moving higher to test the next support of 110.66.

XBR/USD

The price of Brent crude rose sharply to Friday’s highs of $72.65. On the chart below, this price is above the 25-day and 50-day moving averages while the average directional index has risen to almost 30. The commodities channel index remained close to the overbought level. Today, the pair could continue rising as investors pay attention to Iran and OPEC.

Bitcoin has recovered sharply higher in early Monday trade after the number one cryptocurrency found strong technical support from just below the $6,500 level. If buyers can breach the current yearly trading high the BTCUSD pair could eventually test towards the $10,000 resistance level. The daily time frame is showing that key support from the Ichimoku indicator is located at the $7,100 level.

The BTCUSD pair is strongly bullish while trading above the $8,000 level, key resistance is found at the $8,500 and $10,000 levels.

If the BTCUSD pair trades under the $8,000 level, sellers may test towards the $7,100 and $6,500 support levels.

The British pound has opened the new trading week on soft footing against the US dollar, with the pair now slipping closer to the 1.2700 level. If the 1.2700 support level is breached, GBPUSD sellers are likely to target towards the important 1.2662 level. Overall, the GBPUSD pair is vulnerable to heavy technical selling while trading below the pivotal 1.2772 resistance level.

The GBPUSD pair is heavily bearish while trading below the 1.2772 level, key support is found at the 1.2700 and 1.2662 levels.

If the GBPUSD pair trades holds above the 1.2772 level, key intraday resistance is found at the 1.2810 and 1.2830 levels.