TECH TARGETS: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD – UOB

EUR/USD: Neutral: Odds for a move above 1.0870/75 are not high.

The 1.0825/30 level that we have talked about since Thursday was finally met with an overnight high of 1.0825. Shorter-term upward momentum is slowing down and while a move above 1.0825/30 would not be surprising, the odds for a break above last December high of 1.0870/75 are not high. Support is at 1.0745 but only a move back below 1.0715 would indicate that a short-term top is in place.

GBP/USD: Bullish: To take half-profit at 1.2545/50.

GBP hit an overnight high of 1.2507 before closing on a strong note. The bullish phase that started on Monday  is still intact. However, from a shorter-term perspective, the rally appears to be running ‘too fast, too soon’ and those who are long should look to book half-profit at 1.2545/50, just below the 1.2570 high seen in late February. Stop-loss is unchanged at 1.2340.

AUD/USD: Neutral: In a 0.7600/0.7730 range.

There is not much to add as we continue to view the current movement as part of a 0.7600/0.7730 consolidation phase even though the immediate bias is for a probe lower towards the low end of the expected 0.7600/0.7730 range. Looking further ahead, as long as there is no sustained drop below 0.7600, we expect the current consolidation to be resolved to the upside.

NZD/USD: Neutral: In a 0.6950/0.7090 range.

As highlighted yesterday, NZD has likely made a short-term top at 0.7090 earlier this week. The current price action is viewed as part of a consolidation phase that could last for several days. Overall, expect sideway trading from here, likely between 0.6950 and 0.7090.

USD/JPY: Neutral: No signs of stabilization just yet.

While we expected USD to extend its decline towards 111.05/10, the pace of the drop and the ease of which this level is taken out came as a surprise (overnight low of 110.71). Despite being severely oversold, there is no sign of stabilization just yet and further weakness towards the psychology level of 110.00 is not ruled out. Overall, this pair is expected to stay under pressure unless it can move above stay above 112.50.

M Asia Trade Tech Targets: EUR/USD, AUD/USD, NZD/USD, USD/JPY - UOB

EUR/USD: Neutral: Recovery to extend to 1.0825/30. 

It took a while but EUR finally managed to move above 1.0800 and hit an overnight high of 1.0819. This level is just below the solid 1.0825/30 resistance and as indicated in recent updates, is unlikely to yield so easily. That said, in view of the strong daily closing yesterday, a move above this level is not ruled out but shorter-term indicators are severely overbought and the odds for a move above last December high of 1.0870/75 are not high. On the downside, support is at 1.0745 but only a move back below 1.0715

AUD/USD: Neutral: In a 0.7600/0.7730 range.

AUD eked out a fresh high of 0.7750 but was unable to hold on to its gain. The subsequent sharp drop from the high indicates that the upward pressure post-FOMC has eased off. A temporary top is likely in place at 0.7750 and AUD is deemed to have moved into a sideway-trading range. That said, the immediate bias is for a probe lower towards the low end of the expected 0.7600/0.7730 consolidation range.

NZD/USD: Neutral: In a 0.6950/0.7090 range.

The rebound target of 0.7085 that was first highlighted last Thursday was exceeded as NZD hit a high of 0.7090 yesterday. However, the subsequent sharp drop from the high was unexpected. An interim top is likely place and NZD is deemed to have moved into a consolidation phase, likely between 0.6950 and 0.7090.

USD/JPY: Neutral: Oversold but room for extension to 111.05/10.

The sudden acceleration lower yesterday that took out the strong 111.65/70 support was unexpected. The decline is severely oversold especially from a shorter-term perspective but there is room for further extension to 111.05/10. Key short-term resistance has moved lower to 112.50.

Source: United Overseas Bank Global Economics & Markets Research

Forex weekly report

EUR/USD

EUR/USD initially tried to rally during the course of the session on Friday, but then fell apart and reached towards the 1.1050 level. That being the case, there is more than enough support below, and as a result we think that we will bounce given enough time. The market continues to go back and forth and it’s going to be difficult to hang onto a trade for any real length of time when it comes to the EUR/USD pair. Short-term volatility could offer scalping opportunities in both directions, but unless we are sure, we should stay away from here.

Forecast

EUR/USD dipped at the end of the week as the green-back rallied on extremely good jobs data. The pair closed the week at 1.1086 at the very bottom of its range seeing a loss of almost 0.8% for the week. In the coming week the Euro is expected to remain depressed and the dollar should climb as the Fed members turn hawkish. All indications is that the Euro should continue to drop this week.

GBP/USD

GBPUSD went back and forth during the course of the session on Friday, as we found the 1.30 level to be supportive. I believe that there is a significant amount of support below the 1.3 level that extends all the way down to the 1.28 handle. I have no doubt that given enough time we will probably break down below there but the candle for the Friday session suggests that we may have to bounce first before we do that so that we can build up enough momentum to finally break down.

Forecast

GBP/USD will continue with the downside bias price action signalling a two bar reversal bearish movement. Rejection at resistance area closed below the trend line and stochastic oscillator is currently at 50.0 levels. The pair closes below the rejection of trend line and there is clear indication of trend reversal shifting the momentum.

AUD/USD

AUD/USD went back and forth during the course of the session on Friday, as we got stronger than anticipated jobs numbers coming out of the United States. However, this is a market that has been rallying for some time now, and of course tends to follow the gold markets overall. The gold markets have been fairly bullish, so having said that I feel it’s only a matter of time before we continue going higher as the Australian dollar will benefit from that market. Pull-backs at this point in time should attract buyers.

Forecast

AUD/USD rallied late in the week to trade at 0.7617 but gains were limited by the climbing US dollar. New stimulus from the BOE held support commodity based currencies. The pair showed a weekly gain of 0.26% and is a strong buy in the week head with several events on the calendar including the RBNZ rate decision following the RBA rate drop last week. None of the four major banks will pass on the full interest rate cut to its customers following the Reserve Bank of Australia's decision to drop rates to a record low of 1.5 per cent.

USD/JPY

USD/JPY rallied a bit during the course of the session on Friday as the US jobs number came out stronger than anticipated. Because of this, looks like we could bounce a bit and you should also be aware the fact that we formed a hammer on the weekly chart. With that being the case, it is likely that we will eventually get some type of significant bounce in this market. Ultimately, this is a market that should continue to attract buyers based upon the fact that the Bank of Japan below is more than likely going to get involved if this keeps up to the downside.

Forecast

USD/JPY initially fell during the course of the week, but bounced enough to form a nice-looking hammer. This of course makes quite a bit of sense as the US jobs report was much stronger than anticipated. In fact, right above the top of the hammer should send this market looking for the 105 level. Given enough time, it’s very likely that the market will eventually continue to go higher as the 100 level below will attract the Bank of Japan, and possible intervention in this market or at least further quantitative easing.

EURCAD‬: CAN GO ANY SIDE

#‎EURCAD‬: CAN GO ANY SIDE (‪#‎FOREX‬ ‪#‎SIGNAL‬)

 ‪#‎Buy‬ EURCAD at 1.4380 for Target Price 1.4440 and Stop/Loss 1.4355

 ‪#‎Sell‬ EURCAD Bellow 1.4360 for 100 ‪#‎Pips‬ +/-

 Get More Signals @ FOREX CALL TO WATCH

Learn the Basics of Fundamental Analysis in the Forex Market

Traders normally approach money related markets in one of two courses: either through technical analysis or fundamental analysis. Actually history is brimming with brokers who have had exceptionally fruitful vocations as dealers that utilized both of these sorts of investigations. 

Interest rates 

These are the single most noteworthy driver of money worth over the long haul. Most Central Banks report loan fees every month, and these choices are observed conscientiously by business sector members. Loan costs are controlled by Central Banks keeping in mind the end goal to control the cash supply in an economy. In the event that a Central Bank needs to build the cash supply, it brings down loan costs, and on the off chance that it needs to decline cash supply it raises financing costs. 

(GDP) 

Gross domestic product is the most critical pointer of monetary wellbeing in a nation. A nation's Central Bank has expected development viewpoints every year that decide how quick a nation ought to develop as measured by GDP. At the point when GDP falls beneath business sector desires, money values tend to fall and when GDP beats market desires, cash values tend to rise. 

Inflation 

Expansion demolishes the genuine obtaining force of a money, and, in this way, swelling is terrible for the economy by and large. Every year a typical rate of swelling between 2-3% is normal, however in the event that expansion starts moving past the upward targets set by the Central Bank, a coin worth will really ascend because of desire of an inevitable rate climb. Higher loan fees tend to battle off swelling. 

Unemployment 

We will talk about shopper request in a minute, however individuals are fundamentally what drive financial development; along these lines, unemployment is the foundation of monetary development. At the point when unemployment levels build, it devastatingly affects monetary development; therefore, when the work market contracts and unemployment expands, financing costs are regularly sliced trying to build the cash supply in the economy and animate financial development. 

Consumer Demand 

As expressed in the past point, individuals are what drive monetary development; subsequently, solid shopper interest is key to the ordinary, sound working of an economy. At the point when customers are requesting merchandise and administrations, the economy tends to push ahead, however when purchasers are not requesting products and administrations, the economy vacillates. 

Regardless of the fact that you are a specialized broker, it can even now extremely accommodating to comprehend these essential components of major examination. The best forex course will frequently offer further knowledge into how the rising basics drive value conduct.

Forex report

EUR/USD

EURUSD initially tried to rally during the course of the session on Monday, but turned right back around to form a shooting star. That being the case, the market looks as if we’re going to try to grind lower. However, there is quite a bit of support below and noise of course, so having said that it’s likely that the sellers will get involved, but the noise will make trading this market quite difficult. On the other hand, a break above the top of the shooting star for the session on Monday would be very bullish.

GBP/USD

GBPUSD initially tried to rally during the course of the session on Monday, and then turn right back around for most of the day and formed a shooting star. Ultimately, breakdown below the bottom of the shooting star could send this market lower, but there is quite a bit of noise just below. If we break the top the candle though, we could go back towards the 1.47 area again. If we do break down, expect quite a bit of choppiness all the way down to the 1.41 level below.

Forex Report

Data Update for 10^th May 2016

Date	Time	Currency	Impact	Particular	Forecast	Previous
Tue May 10	4:31am	GBP		BRC Retail Sales Monitor y/y		-0.70%
	7:00am	CNY	Medium	CPI y/y	2.30%	2.30%
		CNY	Medium	PPI y/y	-3.80%	-4.30%
	9:15am	JPY		10-y Bond Auction		-0.07|3.9
	11:15am	CHF		Unemployment Rate	3.50%	3.50%
	11:30am	EUR		German Industrial Production m/m	-0.20%	-0.50%
		EUR		German Trade Balance	20.4B	19.8B
	12:15pm	EUR		French Gov Budget Balance		-25.6B
		EUR		French Industrial Production m/m	0.60%	-1.00%
	12:45pm	USD	Medium	FOMC Member Dudley Speaks
	1:30pm	EUR		Italian Industrial Production m/m	0.30%	-0.60%
	2:00pm	GBP	Medium	Goods Trade Balance	-11.2B	-12.0B
	3:30pm	USD		NFIB Small Business Index	93.2	92.6
	7:30pm	USD	Medium	JOLTS Job Openings	5.55M	5.45M
		USD		Wholesale Inventories m/m	0.20%	-0.50%

Ringgit, rupiah move as worldwide development concerns ebb

South Korea not worrying over US forex control principle

South Korea's bad habit, finance minister said on Monday the nation is not stressed over new US laws that permit Washington to ban nations from US exchange arrangements and government obtainment contracts in the event that they keep monetary standards misleadingly low.

Ringgit, rupiah move as worldwide development concerns ebb

The Malaysian ringgit hit a 7-1/2 month high and the Indonesian rupiah scaled a 10-month crest on Monday, as strong US employments information facilitated stresses over a log jam in worldwide financial development and bolstered hazard resources.

Numerous Asian monetary forms added to their late increases, after information on Friday demonstrated to US work picks up surged in February, expanding signs that the US economy has recaptured force taking after its final quarter moderating.

Todays signal for USD/JPY

Top Gainers of today

Current Bar	Current	Last	Change(Pips)	Change(%)	366200
AUDCAD	0.9893	0.9881	12	0.12%	100300
CADJPY	84.86	84.95	-9	-0.11%	182200
GBPAUD	1.9105	1.9125	-20	-0.10%	54000
GBPJPY	160.43	160.59	-16	-0.10%	15400
AUDUSD	0.7402	0.7396	6	0.08%	5600
CADCHF	0.7475	0.7481	-6	-0.08%	40000
GBPCHF	1.4132	1.4141	-9	-0.06%	9300
USDJPY	113.44	113.51	-7	-0.06%	1500
EURAUD	1.4799	1.4808	-9	-0.06%	12100
NZDCAD	0.9025	0.902	5	0.06%	2856200
AUDNZD	1.0958	1.0952	6	0.05%	863700
EURCAD	1.4642	1.4634	8	0.05%	201200
AUDCHF	0.7396	0.7392	4	0.05%	6165000
EURGBP	0.7746	0.7742	4	0.05%	5.06
EURJPY	124.28	124.34	-6	-0.05%	41000
GBPNZD	2.0936	2.0946	-10	-0.05%	12296500
USDCAD	1.3365	1.3359	6	0.04%	1117300
NZDJPY	76.61	76.64	-3	-0.04%	375700
CHFJPY	113.51	113.55	-4	-0.04%	40000
USDCHF	0.9992	0.9995	-3	-0.03%	11000
GBPUSD	1.4143	1.4147	-4	-0.03%	253000
AUDJPY	83.97	83.95	2	0.02%	9100