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For the 24 hours to 23:00 GMT, the USD rose 0.07% against the CHF and closed at 1.0107 on Friday.

In the Asian session, at GMT0300, the pair is trading at 1.0115, with the USD trading 0.08% higher against the CHF from Friday’s close.

The pair is expected to find support at 1.0093, and a fall through could take it to the next support level of 1.0070. The pair is expected to find its first resistance at 1.0130, and a rise through could take it to the next resistance level of 1.0144.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD marginally declined against the CAD and closed at 1.3459 on Friday.

In the Asian session, at GMT0300, the pair is trading at 1.3436, with the USD trading 0.17% lower against the CAD from Friday’s close.

The pair is expected to find support at 1.3406, and a fall through could take it to the next support level of 1.3376. The pair is expected to find its first resistance at 1.3490, and a rise through could take it to the next resistance level of 1.3544.

With no macroeconomic releases in Canada today, investors would look forward to global macroeconomic releases for further direction.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the AUD declined 0.39% against the USD and closed at 0.6865 on Friday.

LME Copper prices declined 1.1% or $64.0/MT to $6025.0/MT. Aluminium prices rose 1.0% or $18.0/MT to $1850.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.6914, with the AUD trading 0.71% higher against the USD from Friday’s close.

The pair is expected to find support at 0.6879, and a fall through could take it to the next support level of 0.6845. The pair is expected to find its first resistance at 0.6934, and a rise through could take it to the next resistance level of 0.6955.

Looking ahead, investors would focus on the Reserve Bank of Australia’s (RBA) policy meeting minutes and the RBA Governor, Philip Lowe’s speech, due overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold declined 0.68% against the USD and closed at USD1277.40 per ounce on Friday, as the US dollar strengthened, on the back of upbeat US economic data.

In the Asian session, at GMT0300, the pair is trading at 1275.70, with gold trading 0.13% lower against the USD from Friday’s close.

The pair is expected to find support at 1270.53, and a fall through could take it to the next support level of 1265.37. The pair is expected to find its first resistance at 1284.93, and a rise through could take it to the next resistance level of 1294.17.

The yellow metal is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours t 23:00 GMT, Crude Oil declined 0.68% against the USD and closed at USD62.74 per barrel on Friday, amid concerns over crude oil demand.

Meanwhile, fresh figures from Baker Hughes disclosed that the number of active oil rigs declined to a 14-month low level by 3 to 802 in the week ended 17 May 2019.

In the Asian session, at GMT0300, the pair is trading at 63.60, with oil trading 1.37% higher against the USD from Friday’s close, after OPEC signalled that it would maintain output cuts.

The pair is expected to find support at 62.81, and a fall through could take it to the next support level of 62.02. The pair is expected to find its first resistance at 64.10, and a rise through could take it to the next resistance level of 64.60.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Crude Oil declined 0.68% against the USD and closed at USD62.74 per barrel on Friday, amid concerns over crude oil demand.

Meanwhile, fresh figures from Baker Hughes disclosed that the number of active oil rigs declined to a 14-month low level by 3 to 802 in the week ended 17 May 2019.

In the Asian session, at GMT0300, the pair is trading at 63.60, with oil trading 1.37% higher against the USD from Friday’s close, after OPEC signalled that it would maintain output cuts.

The pair is expected to find support at 62.81, and a fall through could take it to the next support level of 62.02. The pair is expected to find its first resistance at 64.10, and a rise through could take it to the next resistance level of 64.60.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

GBP/USD declined heavily below the 1.2900 and 1.2800 support levels to enter a bearish zone. EUR/GBP surged higher and settled above the 0.8680 and 0.8700 resistance levels.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a strong downward move and traded below the key 1.2900 support.
• There is crucial bearish trend line forming with resistance at 1.2740 on the hourly chart of GBP/USD.
• EUR/GBP climbed higher sharply and traded above the 0.8700 and 0.8750 resistances.
• There is a significant ascending channel forming with support near 0.8740 on the hourly chart.

GBP/USD Technical Analysis

The British Pound started a significant downward move from well above the 1.3000 level against the US Dollar. The GBP/USD pair declined below a few important supports such as 1.2950 and 1.2900.

The pair even broke the 1.2800 support and settled below the 50 hourly simple moving average. The decline was such that the pair traded close to the 1.2700 level and a new monthly low was formed near 1.2711 on FXOpen.

Recently, the pair started a short term upside correction above the 1.2720 level and the 23.6% Fib retracement level of the latest drop from the 1.2795 high to 1.2711 low.

However, the 1.2740 level is acting as a strong resistance. Besides, there is also a crucial bearish trend line forming with resistance at 1.2740 on the hourly chart of GBP/USD.

A clear break above the 1.2740 and 1.2750 resistance levels could open the doors for more gains. The next immediate resistance is at 1.2762 and the 61.8% Fib retracement level of the latest drop from the 1.2795 high to 1.2711 low.

The main resistance is at 1.2780 and the 50 hourly simple moving average. If there is an upside break above 1.2780 and 1.2800, there could be more gains above 1.2850.

On the downside, a clear break below the 1.2720 and 1.2710 support levels could push GBP/USD towards the 1.2620 level in the near term.

EUR/GBP Technical Analysis

The Euro gained advantage of the British Pound weakness and climbed above the 0.8650 and 0.8680 resistance levels. The EUR/GBP pair even traded above the 0.8700 level to move into a positive zone.

The upward move was strong above 0.8700 and the pair settled above the 50 hourly simple moving average. The pair even broke the 0.8750 resistance and traded as high as 0.8778.

Recently, it started a downside correction and tested the 0.8760 level. An immediate support is near the 0.8752 level and the 23.6% fib retracement level of the recent wave from the 0.8668 low to 0.8778 high.

More importantly, there is a significant ascending channel forming with support near 0.8740 on the hourly chart. The channel support at 0.8740 is also close to the 50 hourly SMA.

Besides, the 38.2% fib retracement level of the recent wave from the 0.8668 low to 0.8778 high is near the 0.8736 level to act as support. Therefore, if the pair corrects further, it is likely to find a strong support near the 0.8740 and 0.8735 levels.

On the upside, the main hurdles are near 0.8775 and 0.8780. A clear break above the 0.8780 level is likely to push EUR/GBP above the 0.8800 and 0.8820 resistance levels in the near term.

Trump revealed that he has been pushing for an unfair trade deal with China, before the negotiations collapsed. In an interview with Fox News Channel aired on Sunday, Trump said he told Xi the agreement "can't be like a 50/50 deal". And, " you are so far ahead from presidents that allowed you to get away. This can't be a 50/50 deal."

He further claimed: "We had a very strong deal. We had a good deal, and at the end, they changed it. And I said, that's OK, we're going to tariff their products". And, "it hurts China so badly."

Trump also talked about his subsidy plan to farmers. He noted conversations with farmers as they said "Sir, we don't want a subsidy. We just want a level playing field. And we also know that we're being killed by these countries -- by many of the countries, not just China."

https://www.youtube.com/watch?v=O1MHh4uAd1c

Japan's economy showed surprising resilience even though there were speculations of contractions. Q1 GDP grew 0.5% qoq versus expectations -0.1% qoq. Annualized, GDP grew 2.1%. However, the details are rather weak indeed. Consumer spending dropped -0.1% qoq. Business spending also dropped -0.3% qoq. Exports also had the biggest contraction since 2015. The figures argue that Japan might be entering into a mild recession

Economy Minister Toshimitsu Motegi, nevertheless, hailed that Japan's economic fundamentals remain sound, supported by strong domestic demand, which is continuing up trend. Also, employment and income environments have improved while corporate profits are high.

Though, the government will watch the impact of trade tensions carefully. Exports are already slowing, and output remains weak due to China's economic slowdown. Some manufacturers are also delaying capital spending, leading to decline in capital expenditure.

Key Highlights

• The Euro failed to clear a crucial resistance near 1.1260 against the US Dollar.
• EUR/USD traded below two bullish trend lines near 1.1200 on the 4-hours chart.
• The Euro Area CPI increased 1.7% in April 2019 (YoY), similar to the forecast and last reading.
• The German PPI in April 2019 (MoM) might increase 0.2%, whereas the last was -0.1%.

EURUSD Technical Analysis

This past week, the Euro recovered above the 1.1220 and 1.1240 levels against the US Dollar. However, the EUR/USD pair struggled to clear a significant resistance area near 1.1260, and later trimmed most gains.

Looking at the 4-hours chart, the pair failed on three occasions near the 1.1260 and 1.1265 resistance levels. Recently, it traded as high as 1.1262 and declined below 1.1240 and 1.1220.

The recent decline was strong, considering a close below 1.1200, 100 simple moving average (4-hours, red), and the 200 simple moving average (4-hours, green). More importantly, the pair traded below two bullish trend lines near 1.1200 on the same chart.

The pair even traded below the 61.8% Fib retracement level of the upward move from the 1.1135 low to 1.1262 high. It opened the doors for more losses below the 1.1165 and 1.1150 support levels.

If the pair continues to move down, it could retest the 1.1135 swing low. Below 1.1135, the pair is likely to test 1.1100 or the 1.236 Fib extension level of the upward move from the 1.1135 low to 1.1262 high.

Conversely, if there is an upside correction, the previous support near 1.1200 and the 100 simple moving average (4-hours, red) are likely to act as resistance. The next key resistances are 1.1225, 1.1240 and 1.1260.

Fundamentally, the Euro Area CPI report for April 2019 was released by the Eurostat. The market was looking for a 1.7% rise in the CPI compared with the same month a year ago.

The actual result was similar to the forecast, as the Euro Area CPI increased 1.7%. Besides, the monthly change was +0.7%, similar to the forecast, but below the last +1.0%.

The report added:

In April 2019, the highest contribution to the annual euro area inflation rate came from services (+0.86 percentage points, pp), followed by energy (+0.51 pp), food, alcohol & tobacco (+0.29 pp) and non-energy industrial goods (+0.06 pp).

Overall, EUR/USD remains at a risk of more losses towards 1.1100 in the near term. Besides, there were heavy downsides in GBP/USD below 1.2900 and 1.2800, and AUD/USD broke the key 0.6900 support area.

Economic Releases to Watch Today

German Producer Price Index April 2019 (MoM) – Forecast +0.2%, versus -0.1% previous.

Chicago Fed National Activity Index April 2019 – Forecast -0.33, versus -0.15 previous.