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Daily Markets
- The dollar weakened against most currencies on Thursday after economic data showed more signs of softening in the U.S. labor market, while the pound rebounded from earlier lows after the Bank of England opened the door for an interest rate cut. Weekly initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000, the highest level since the end of last August and above the 215,000 expected by economists in a Reuters poll. The data followed last week's weaker-than-anticipated U.S. payrolls report and other data that showed job openings fell to a three-year low in March. Market participants have looked towards a softening labor market as a sign that consumers will begin to slow spending and in turn help cool inflation. Data next week will include readings on consumer prices (CPI), producer prices (PPI) and retail sales. Schamotta said there were some seasonal distortions in the claims report that may have led to the higher reading, but added that recent economic data "kind of suggests that we're seeing a deceleration in the world's largest economy, and if we do see a sequential decline in U.S. consumer/producer price indices next week as well as the retail sales number, then that could prick that U.S. exceptionalism trade that's been dominating markets for quite a long time." The greenback showed little reaction to comments from Federal Reserve Bank of San Francisco President Mary Daly, who said she still sees a "really healthy" labor market and inflation that remains too high. Sterling strengthened in the wake of the U.S. data and was last at 0.18% at $1.2518. The pound had dropped to a low of $1.2446, its weakest level since April 24, after the Bank of England (BoE) paved the way for an interest rate cut. The BoE's Monetary Policy Committee had voted 7-2 to keep the central bank's key policy rate at a 16-year high of 5.25%, with Deputy Governor Dave Ramsden joining Swati Dhingra in voting for a cut to 5%. BoE Governor Andrew Bailey said it was possible the central bank would need to cut rates by more than investors expect. Against the Japanese yen the dollar edged 0.03% higher at 155.52 as hawkish opinions from Bank of Japan members helped slow the yen's fall. The dollar has been slowly recovering against the Japanese currency after it tumbled 3.4% last week, its biggest weekly percentage drop since early December 2022. The yen had earlier strengthened to 155.15 per dollar, after the BOJ's summary of opinions showed board members were overwhelmingly hawkish at their April policy meeting, with many citing the need for steady interest rate hikes. BOJ Governor Kazuo Ueda said the central.
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Intraday RESISTANCE LEVELS |
10th May 2024 |
R1 |
R2 |
R3 |
GOLD-XAU |
2,360 |
2,370-2,382 |
2,390-2,400 |
Silver-XAG |
28.40-28.90 |
29.40-29.80 |
30.40-31.00 |
Crude Oil |
79.90 |
80.50-81.10 |
82.00-82.90 |
EURO/USD |
1.0750-1.0805 |
1.0900-1.0850 |
1.0950-1.1020 |
GBP/USD |
1.2550-1.2610 |
1.2670-1.2700 |
1.2760-1.2820 |
USD/JPY |
155.80-156.10 |
157.00-157.50 |
158.00 |
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Intraday SUPPORTS LEVELS |
10th May 2024 |
S1 |
S2 |
S3 |
GOLD-XAU |
2,329-2,340-2,351 |
2,310-2,300 |
2,290-2,278 |
Silver-XAG |
27.90-27.50 |
26.90-26.60 |
26.20-25.90 |
Crude Oil |
79.20-78.50-77.80 |
77.00-76.40 |
75.50-74.90 |
EURO/USD |
1.0730-1.0690-1.0650 |
1.0590-1.0550 |
1.0490-1.0390 |
GBP/USD |
1.2500-1.2450-1.2390 |
1.2350-1.2300 |
1.2240-1.2190 |
USD/JPY |
154.90-154.30-153.10 |
152.50-151.90 |
151.50-150.90 |
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Intra-Day Strategy (10th May 2024) |
GOLD-XAU |
Sell on Strength |
Silver-XAG |
Buy on Dips |
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Crude Oil |
Neutral to Sell |
EUR/USD |
Neutral to Sell |
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GBP/USD |
Neutral to Buy |
USD/JPY |
Neutral to Sell |
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Gold – XAU
Gold on Thursday made its intraday high of US$2347.11/oz and low of $2306.67/oz. Gold is up by 1.613% at US$2345.62/oz.
Technicals in Focus:
On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.
Trading Strategy: Sell on Strength
Sell below 2355-2400 keeping stop loss closing above 2400, targeting 2,340-2329-2300 and 2280-2267.
Buy in between 2340-2254 with risk below 2250 targeting 2353-2360-2,370 and 2,382-2,390-2,400.
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Intraday Support Levels |
S1 |
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2,329-2,340-2,351 |
S2 |
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2,310-2,300 |
S3 |
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2,290-2,278 |
Intraday Resistance Levels |
R1 |
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2,360 |
R2 |
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2,370-2,382 |
R3 |
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2,390-2,400 |
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Technical Indicators
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Name |
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Value |
Action |
14DRSI |
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81.992
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Buy |
20-DMA |
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2250.75 |
Buy |
50-DMA |
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2139.74
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Buy |
100-DMA |
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2085.54 |
Buy |
200-DMA |
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2008.26 |
Buy |
STOCH(5,3) |
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83.141 |
Buy |
MACD(12,26,9) |
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66.543 |
Buy |
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Silver - XAG
Silver on Thursday made its intraday high of US$28.23/oz and low of US$27.29/oz settle up by 3.711% at US$28.30/oz.
Technicals in Focus:
On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.
Trading Strategy: Buy on Dips
Buy in between 27.90-23.90, targeting 28.90-29.40 and 30.00-30.40-31.00 with stop loss should be placed on the breakage below 23.00.
Sell in between 28.50-30.50 with a stop loss above 30.50 targeting 28.10-27.50-26.40 and 25.90-25.45-24.60.
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Intraday Support Levels |
S1 |
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27.90-27.50 |
S2 |
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26.90-26.60 |
S3 |
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26.20-25.90 |
Intraday Resistance Levels |
R1 |
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28.40-28.90 |
R2 |
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29.40-29.80 |
R3 |
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30.40-31.00 |
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TECHNICAL INDICATORS |
Name |
|
Value |
Action |
14DRSI |
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48.44 |
Buy |
20-DMA |
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27.42 |
Buy |
50-DMA |
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25.30 |
Buy |
100-DMA |
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24.22 |
Buy |
200-DMA |
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23.75 |
Buy |
STOCH(5,3) |
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23.941 |
Sell |
MACD(12,26,9) |
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0.642 |
Buy |
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Oil - WTI
Crude Oil on Thursday made an intra‐day high of US$79.41/bbl, an intraday low of US$76.69/bbl, and settled up by 0.390% to close at US79.17/bbl.
Technicals in Focus:
On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the overbought region, giving a negative crossover to confirm a bearish stance; while the RSI is in the neutral region, more upside can be expected to reach the overbought region, which is highly probable.
Trading Strategy: Neutral to Sell
Sell in between 79.50-89.65 with stop loss at 90.00; targeting 79.00-78.10-77.80 and 77.00-76.40.
Buy above 77.80-75.00 with risk daily closing below 75.00, targeting 79.00-79.90-80.50 and 81.10-82.00-82.90.
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Intraday Support Levels |
S1 |
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79.20-78.50-77.80 |
S2 |
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77.00-76.40 |
S3 |
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75.50-74.90 |
Intraday Resistance Levels |
R1 |
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79.90 |
R2 |
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80.50-81.10 |
R3 |
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82.00-82.90 |
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TECHNICAL INDICATORS |
Name |
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Value |
Action |
14DRSI |
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52.573 |
Sell |
20-DMA |
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83.95 |
Buy |
50-DMA |
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80.85 |
Buy |
100-DMA |
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77.10 |
Buy |
200-DMA |
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79.67 |
Buy |
STOCH(5,3) |
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29.644 |
Sell |
MACD(12,26,9) |
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1.65 |
Buy |
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EUR/USD
EUR/USD on Thursday made an intraday low of US$1.0723/EUR, a high of US$1.0783/EUR, and settled the day up by 0.318% to close at US$1.07811/EUR.
Technicals in Focus:
On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.
Trading Strategy: Neutral to Sell
Sell below 1.0750-1.1100, targeting 1.0700-1.0640-with stop-loss at daily closing above 1.1100.
Buy above 1.0690-1.0450 with risk below 1.0400 targeting 1.0845-1.0890 and 1.1020-1.1105-1.1145.
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Intraday Support Levels |
S1 |
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1.0730-1.0690-1.0650 |
S2 |
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1.0590-1.0550 |
S3 |
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1.0490-1.0390 |
Intraday Resistance Levels |
R1 |
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1.0750-1.0805 |
R2 |
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1.0900-1.0850 |
R3 |
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1.0950-1.1020 |
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TECHNICAL INDICATORS |
Name |
|
Value |
Action |
14DRSI |
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44.395 |
Buy |
20-DMA |
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1.0734 |
Sell |
50-DMA |
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1.0806 |
Buy |
100-DMA |
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1.0843 |
Buy |
200-DMA |
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1.0811 |
Buy |
STOCH(5,3) |
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1.0811 |
Sell |
MACD(12,26,9) |
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-0.0044 |
Buy |
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GBP/USD
GBP/USD on Thursday made an intra‐day low of US$1.2444/GBP, a high of US$1.2526/GBP, and settled the day up by 0.211% to close at US$1.2522/GBP.
Technicals in Focus:
On daily charts, prices are sustaining below 50DMA (1.2674) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish stance. MACD is above the zero line but histograms are increasing leading to movement.
Trading Strategy: Neutral to Buy
Based on the charts and explanations above; buy in between 1.2450-1.2050 with a target of 1.2500-1.2540 and 1.2600-1.2690-1.2730 with a stop loss closing below 1.2050.
Sell in between 1.2540-1.2700 with targets at 1.2360-1.2300-1.2240 and 1.2190-1.2100 with a stop loss of 1.2950.
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Intraday Support Levels |
S1 |
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1.2500-1.2450-1.2390 |
S2 |
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1.2350-1.2300 |
S3 |
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1.2240-1.2190 |
Intraday Resistance Levels |
R1 |
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1.2550-1.2610 |
R2 |
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1.2670-1.2700 |
R3 |
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1.2760-1.2820 |
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TECHNICAL INDICATORS |
Name |
|
Value |
Action |
14DRSI |
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38.911
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Buy |
20-DMA |
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1.2632 |
Sell |
50-DMA |
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1.2655 |
Sell |
100-DMA |
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1.2665 |
Sell |
200-DMA |
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1.2583 |
Sell |
STOCH(5,3) |
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15.458 |
Buy |
MACD(12,26,9) |
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-0.003 |
Sell |
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USD/JPY
USD/JPY Thursday made an intra‐day low of JPY155.14/USD an intraday high of 155.94/USD, and settled the day up by 0.028% at JPY155.40/USD.
Technicals in Focus:
In daily charts, JPY is sustaining above 100DMA (137.57), major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.
Trading Strategy: Neutral to Sell
Sell below 155.90-159.00 with risk above 159.00 targeting 153.10-152.60-151.00 and 150.60-149.90-149.30.
Long positions above 154.90-149.50 with targets of 154.90 and 156.10-156.90-157.50 with stops below 149.50.
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Intraday Support Levels |
S1 |
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154.90-154.30-153.10 |
S2 |
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152.50-151.90 |
S3 |
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151.50-150.90 |
INTRADAY RESISTANCE LEVELS |
R1 |
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155.80-156.10 |
R2 |
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157.00-157.50 |
R3 |
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158.00 |
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TECHNICAL INDICATORS |
Name |
|
Value |
Action |
14DRSI |
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79.370 |
Buy |
20-DMA |
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152.22 |
Buy |
50-DMA |
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150.65 |
Buy |
100-DMA |
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148.10 |
Buy |
200-DMA |
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147.45 |
Buy |
STOCH(9,6) |
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94.662 |
Sell |
MACD(12,26,9) |
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0.221 |
Sell |
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© 2024 Daily Forex Guide. All right reserved.
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