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Maxain Morning Analysis 08/05/2024

EUR/USD

Trend Theme:EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official,

Trend Review:EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.

Today Advise:Bearish

Key Levels:

PPResistance*1.07539 * 1.07564 **1.07626 ***
1.07502Support*1.07477 *1.0744 **1.07378 ***

Weekly forecast

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USD/JPY

Trend Theme:USD/JPY extends recovery above 154.50 amid firmer US Dollar.

Trend Review:The USD/JPY trades in positive territory for the third consecutive day around 154.75 during the early Asian session on Wednesday. The higher-for-longer US rate narrative continues to support the US Dollar and lift the pair. 

Today Advise:Neutral

Key Levels:

PPResistance*154.86 *154.949 **155.124 ***
154.774Support*154.685 *154.599 **154.424 ***

Weekly forecast

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WTI

Trend Theme:The EIA lowered its demand growth forecast, supply tensions have eased, and oil prices fell to a new low in the past two months.

Trend Review:Oil prices closed slightly lower on Tuesday on signs that supply concerns have eased, the EIA’s monthly report also lowered its demand growth forecast, and the United States still believes it can break the ceasefire deadlock. Oil price losses were limited, however, as market participants turned their attention to U.S. inventory data due later in the day.

Today Advise:Bullish

Key Levels:

PPResistance*78.105 *78.173 **78.275 ***
78.071Support*78.003 *77.969 **77.867 ***

Weekly forecast

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XAU/USD

Trend Theme:Gold wanes as US Dollar soars, unfazed by lower US yields.

Trend Review:Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.

Today Advise:Bearish

Key Levels:

PPResistance*2315.7 *2316.87 **2318.72 ***
2315.02Support*2313.85 *2313.17 **2311.32 ***

Weekly forecast

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