• Remains confined within a four-day-old broader trading range, forming a rectangular chart pattern on hourly charts. • With short-term technical indicators gradually easing from the bullish territory, a break below 50-period SMA on the 4-hourly chart should expose the key 0.70 psychological mark.
Major US equity indices struggled to build on last week’s strong gains and kicked off a busy week on a subdued note. Markets have shown remarkable resilience to an escalation of trade tensions between the US and its major allies, especially after the G-7 meeting
• Has been oscillating between two converging trend-lines over the past three-weeks, forming a symmetrical triangle on 4-hourly chart and points to a consolidation phase before the next leg of a directional move. • The commodity’s inability to register any meaningful recovery from multi-month
• Diverging technical indicators now seemed to keep a lid on last week’s rebound from bullish flag support and any meaningful momentum beyond 50-day SMA. • A strong follow-through buying above the 0.9900-0.9910 immediate strong hurdle needed to increase prospects of any further near-term
• Risk-on mood weighs on JPY’s safe-haven demand and helps regain positive traction. • A goodish uptick in the US bond yields underpin USD and provide an additional boost. • Investors now seemed reluctant ahead of this week’s key data and the Fed decision.
• CAD weighed down by worsening US-Canada relations/NAFTA concerns. • Weaker oil prices/a modest USD uptick provide an additional boost. The USD/CAD pair reversed an early dip to 1.2955 and is now looking to build on its momentum back above the key 1.30 psychological
• Poor UK manufacturing/industrial production data prompts some aggressive GBP selling, dragging the pair below Friday’s swing low and a short-term ascending trend-channel. • A subsequent fall below 200-period SMA on hourly chart reinforces a short-term bearish breakdown and paves the way for a
• Risk-on mood prompts some fresh weakness at the start of a new week. • A goodish pickup in the US bond yields adds to the selling pressure. • Subdued USD demand does little, albeit helps limit further downside. Gold traded with a mild
• Dismal UK manufacturing data prompted some aggressive GBP selling and helped build on Friday’s rebound from the vicinity of 50-day SMA support. • Momentum back above 100-day was key for buyers and remained supportive of the latest leg of a sharp upsurge. •
The UK Office for National Statistics (ONS) published April industrial and manufacturing production data on Monday and below are the key highlights: • Manufacturing output declined sharply by -1.4% on a monthly basis in April versus a contraction of 0.1% seen in the previous