Intraday Forex Thursday, May 6 (EURUSD, USDJPY, etc.) Dollar holds near 2-week high, U.S. jobs data eyed for more trading clues.

Zulbahri_GB

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Hi everyone. This observation is made around 5:00 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.


Global stocks rose in Thursday buoyed by optimism over solid corporate earnings and economic reports. Though cautiously traded as investors eyed to the U.S. jobs report on Friday for clues about how long the Fed will stay on hold.
Oil prices rose on crude inventories setback.

Meanwhile, the dollar hovered below a 2-week high, stayed relatively rangebound after the U.S. Treasury Secretary Yellen clarified her comment on Tuesday by saying she was not predicting or recommending interest-rate increases when remarking about the impact of fiscal spending on the U.S. economy.


I also does analysis for some other currencies. Read more on the website on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

[EURUSD]
  • The euro traded just above the $1.20 mark on Thursday, after dipping to $1.1986 on Wednesday for the first time since April 19.​
  • The pair last traded at $1.20029.​
  • A steadying T-note yields strengthened the dollar's interest rate differentials as the 10-year T-note yield bounced on Tuesday.​
  • The dollar cooled off after the U.S. Treasury Secretary Yellen clarified her comment by saying she was not predicting or recommending interest-rate increases when remarking about the impact of fiscal spending on the U.S. economy.​
  • So far, Fed Chair Jerome Powell has argued the labour market is far short of where it needs to be to start talking of tapering asset purchases. The central bank has said it will not raise its benchmark Fed funds rate through 2023.​
  • The EUR/USD has pulled back to the descending trendline in a strong bullish move overnight, as sellers have returned to drive price action. If the pair breaks back below the trendline, bearish sentiment will likely continue. The 1.1979 price level remains a key support area.​
Important Levels to Watch for:​
  • Resistance line of 1.20324 and 1.20487.​
  • Support line of 1.19796 and 1.19633.​
EURUSD.png



[USDJPY]
  • The dollar changed hands at 109.375 per yen, consolidating after rallying as high as 109.695 on Monday, a level not seen since April 13.​
  • The weakening in the safe-haven demand for the yen came as stock index turned higher on the day.​
  • An increase in U.S. inflation expectations to an 8-year high on Wednesday was hawkish for Fed policy and lifted the dollar.​
  • In its latest meeting minutes earlier today, the BoJ policymakers agreed to focus on keeping interest rates stably low, as pandemic pain persists. The remarks underscore the BOJ's resolve to maintain its massive stimulus as slow vaccine rollouts and a fourth wave of infections cloud prospects for a solid economic recovery.​
  • At the March review, the BoJ kept policy steady and unveiled steps to make its tools sustainable enough to weather a prolonged battle to hit its 2% inflation target.​
  • The USD/JPY continues to stall at the 109.04 price level which represented an obstacle in the past for buyers. The pair will likely now remain within the 109.04- 109.64 price range. Bullish momentum is currently moderate.​
Important Levels to Watch for Today:​
  • Resistance line of 109.500 and 109.641.​
  • Support line of 109.041 and 108.899.​
USDJPY.png



For analysis of USDCHF, GBPUSD and other insight into the market, read more on the WEBSITE or click on TECHNICAL ANALYSIS and DAILY MARKET NEWS.
 
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