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Maxain Morning Analysis 17/05/2024

EUR/USD

Trend Theme:EUR/USD slipped on Thursday after Greenback pares some losses.

Trend Review:EUR/USD eased slightly on Thursday, falling back below 1.0880 as the Greenback broadly recovers losses from earlier in the week. The pair remains up for the trading week, but a late break for the US Dollar is on the cards as investors second-guess the Fed’s stance on rate cuts.

Today Advise:Bullish

Key Levels:

PPResistance*1.08623 *1.08656 **1.0871 ***
1.08602Support*1.08569 *1.08548 **1.08494 ***

Weekly forecast

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USD/CAD

Trend Theme:USD/CAD edges higher above 1.3600 on firmer US Dollar, Fed’s cautious tones.

Trend Review:The USD/CAD pair trades on a stronger note around 1.3620 on Friday during the early Asian trading hours. The uptick of the pair is bolstered by the renewed US Dollar demand as the US Federal Reserve officials emphasized their cautious stance to hold rates higher for longer.  

Today Advise:Bearish

Key Levels:

PPResistance*154.336 *154.431 **154.649 ***
154.213Support*154.118 *153.995 **153.777 ***

Weekly forecast

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WTI

Trend Theme:Oil extends the rally near $78.90, US inflation data boosts Fed rate cut expectations.

Trend Review:Western Texas Intermediate, the US crude oil benchmark, is trading around $78.90 on Friday. The black gold edges higher amid the recent drop in US crude inventories and the possible interest rate cuts by the Federal Reserve. 

Today Advise:Neutral

Key Levels:

PPResistance*78.982 *79.046 **79.192 ***
78.9Support*78.836 *78.754 **78.608 ***

Weekly forecast

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XAU/USD

Trend Theme:Gold loses its bright and tumbles on firm US Dollar, Fed hawkish comments.

Trend Review:Gold prices fell in the mid-North American session on Thursday, below $2,390, as US Treasury yields recovered and underpinned the Greenback. Wednesday’s inflation report in the United States sponsored the golden metal rally, but Thursday’s data was a mixed bag, which could likely trigger some profit-taking ahead of the weekend.

Today Advise:Bearish

Key Levels:

PPResistance*2392.14 *2394.16 **2398.91 ***
2389.41Support*2387.39 *2384.66 **2379.91 ***

Weekly forecast

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