30 April 2020

U.S. Unemployment Claims: Thursday, 12:30.  New jobless claims have amounted to some 26 million in the past five weeks, but there is a silver lining, as the indicator has been declining. Last week, the indicator dropped to 3.5 million, down from 4.4 million a week earlier.

French Flash GDP: Thursday, 5:30. The euro zone’s second-largest economy contracted by 0.1% in the fourth quarter. Economic conditions have deteriorated significantly due to the Covid-19 outbreak and analysts are bracing for a sharp decline of 4.0% in Q1 GDP.

Eurozone Flash GDP: Thursday, 9:00. The initial read of GDP tends to have the most significant impact, even though it does not include data from Germany. Back in Q4, the third read confirmed a growth rate of 0.1%. For Q1, the forecast stands at -3.7 percent.  A decline in this range could send the euro sharply lower.

Eurozone Inflation: Thursday, 9:00.  CPI came in at 0.7% in the final March reading, as inflation remains well below the ECB target of around 2 percent. The forecast for the initial April reading stands at just 0.1%. The core reading showed a gain of 1.0% in March and the April forecast stands at 0.7 percent.

ECB Rate Decision: Thursday, 11:45.  The ECB is scrambling to deal with the turmoil in the financial markets due to the corona crisis. The bank has changed some rules in order to maintain banks’ access to its ultra-cheap liquidity. The ECB will also publish fresh forecasts for growth and inflation and may downgrade some of the data points.

Canadian GDP: Thursday, 12:30. Canada releases GDP on a monthly basis. The February read came in at 0.1%, and March is expected in at a flat 0.0%.

 

 

USD
U.S. Unemployment Claims

EUR
French Flash GDP
ECB Rate Decision

CAD
Canadian GDP

  • EURUSD

Update: The downtrend line was broken and the pair reached its first target to the upside. The chart above shows that the pair is traded below a strong resistance level that is the downtrend line. Therefore, we are bearish as long as the pair is trading below it. Our first target is 1.0750. On the other hand, if the pair breached the uptrend line. We can go long targeting the level of 1.0940.

 

Resistance levels: Support levels: Recommended:
▪ 1.1050
▪ 1.1000
▪ 1.0940
▪ 1.0750
▪ 1.0700
▪ 1.0680
We are bearish as long as the pair is trading below the downtrend line.
  • GBPUSD

Update: The resistance level was broken and the pair went upward that it reached the level of 1.2640. As could be seen on the chart above that the pair is trading below a strong resistance level that is 1.2500. Therefore, we are bearish as long as the pair is trading below it. Our first target is 1.2350

 

Resistance levels: Support levels: Recommended:
▪ 1.2450
▪ 1.2430
▪ 1.2400
▪ 1.2350
▪ 1.2300
▪ 1.2250
We are bearish as long as the pair is trading below 1.2500.
  • GOLD

Update: Targets were hit. The chart above shows that the pair is trading below a strong resistance level that is 1750. Therefore, we are bearish as long as the pair is trading below it. Our first target is 1700 followed by 1690.

 

Resistance levels: Support levels: Recommended:
▪ 1750
▪ 1740
▪ 1736
▪ 1700
▪ 1690
▪ 1640
We are bearish as long as the pair is trading below the level of 1750.
  • AUDUSD

Update: We remain the same. The chart above shows that the pair is trading above a strong support level that is 0.6400. Therefore, we are bullish as long as the pair is trading above it. Our first target is 0.6550. On the other hand, if the level of 0.6400 is broken, we can go short targeting the level of 0.6200

 

Resistance levels: Support levels: Recommended:
▪ 0.6550
▪ 0.6500
▪ 0.6495
▪ 0.6400
▪ 0.6350
▪ 0.6300
We are bullish as long as the pair is trading above the level of 0.6400.
  • GBPJPY

Update: The downtrend line was broken and the pair reached its upside target. The chart above shows that the pair might continue going downward as long as the pair is trading below the downtrend line shown on the chart in green. Our first target is 132.00. On the other hand, if the uptrend line is broken, we can go long targeting the level of 134.00

 

Resistance levels: Support levels: Recommended:
▪ 135.00
▪ 134.50
▪ 134.00
▪ 132.00
▪ 131.50
▪ 131.00
We are bearish as long as the pair is traded below the downtrend line.

 

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