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End of Day Technical Review – 07 May 2015
End of Day Technical Analysis Report for:
EURUSD, GBPUSD, AUDUSD, USDJPY, USDCAD, NZDUSD
DUE TO BUSINESS TRAVEL COMMITMENTS DIRECTOR OF TECHNICAL ANALYSIS AND AUTHOR OF THE DAILY REPORT, STEFANO BRESCHI IS AWAY UNTIL NEXT WEEK. THE DAILY WILL THEREFORE TAKE A SLIGHTLY DIFFERENT LOOK AT THE MARKETS IN THE INTERIM.
► EUR/USD: In yesterday’s report we stated that “A retracement after this stellar move is likely and should be used as a buying opportunity for those not already long. No change in our current stance. Our stance remains unaltered. As per last commentary you should remain partially Long. Use a trailing Stop.”
Today we duly saw the retracement. Perhaps a little too early to begin building a long position especially with NonFarm Payroll data tomorrow.
Technical Recommendation: Should still be partially Long. If flat look to buy on a retracement.
► GBP/USD: Election day and the initial polls after voting has closed sees the Conservatives being the largest party but short of a majority. Initial GBP reaction is positive, up a further 1% after a strongish day. Uncertainty over the next few days means that our stance is unchanged and longs should be either trailing the Stop and/or also considering taking profit here. A pull back is likely from these levels.
Technical Recommendation: Take some profit and/or use a trailing Stop.
► AUD/USD: As suggested yesterday today did witness a correction after the stellar performance post the RBA rate cut two days ago. More weakness is possibly likely so we anticipate having time before re-entering on the long side.
Technical Recommendation: Looking to re-enter Long.
► USD/JPY: Yesterday we stated that we felt a smallish correction was likely. This happened today as the $ rebounded. There may be more to come if the Nonfarm Payroll figure comes in better than 230,000 but after that the $ will renew its descent.
Stand aside and wait for a better selling opportunity higher up.
Technical Recommendation: Stand aside.
► USD/CAD: What we stated yesterday is exactly what we want to state today: “our stance has not altered. We happily remain Short as we see this bearish trend continuing. Our 1st Target is just above 1.1700. Weakness again today but well of the lows. We may see a small corrective bounce before the resumption down.”
Technical Recommendation: We are Short. Position ca 145 pips in profit.
► NZD/USD: Yesterday we wrote that “recent NZD weakness would be rectified”. That did not happen today as the NZD took direction from the other commodity currencies and possible feeling that the figure tomorrow may be higher than anticipated.
Our recommendation remains unchanged until post tomorrow.
Technical Recommendation: Stand aside.
► GOLD: A weak day for gold as the $ rebounded against commodity backed currencies. The 1180 level seems to be holding until tomorrow.
From a fundamental point of view sudden weakness if it occurs needs to be bought into.
Technical Recommendation: Neutral.
► SP500: Another weak day but a close well of the lows. The market is due for a short term corrective bounce and tomorrow’s figure may be the catalyst.
Fundamentally we believe that strength needs to be sold rather than weakness bought.
Stand aside until post tomorrow’s data.
Technical Recommendation: Re-assessing.
CHECK OUR INTERACTIVE ECONOMIC CALENDAR FOR UPCOMING WORLDWIDE DATA RELEASES
CHARTING LEGEND:
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