Top News in Global Markets:
From last week’s data:
Swiss retail sales came in lower than expected, for the month of March, on a yearly basis.
The Eurostat statistical center showed that the GDP was lower than expected in the first quarter of the year in the euro area.
In Canada, GDP came in lower than expected in February.
In the United States, the core personal consumption expenditures index was released for the month of March, and the results were similar to what experts had expected.
The Chicago Purchasing Managers’ Index (PMI) showed a significant increase in April, a survey that examines business conditions, production, new orders, prices and inventories.
The Dow Jones Industrial Average ended last week’s trading at its highest since mid-February.
And yesterday:
The PMI for April was released in China, and the results came in lower than expected in both the industrial and non-manufacturing sectors.
And in the morning:
Standard & Poor’s Global released the Purchasing Managers’ Index for the manufacturing sector in Japan, and the results were similar to what experts expected in the month of April. The Japanese Consumer Confidence Index was also released for the same month, as the results were higher than expected.
Reports to be released this evening:
Canada Manufacturing PMI for April.
The Institute for Supply Management releases the US Manufacturing PMI for April.
Among the most important events during the week:
The Reserve Bank of Australia will issue its interest rate decision on Tuesday.
The Federal Reserve will release the US interest rate decision on Wednesday.
The European Central Bank releases its interest rate decision on Thursday.
On Friday, important US data will be announced, headed by the unemployment rate and the amount of change in non-agricultural jobs for the month of April.
Technical Analysis
Dollar Index – 1 Hour Timeframe
The US dollar index continued rising by the beginning of the week’s trading today, supported by investors’ anticipation for the Federal Reserve’s interest rate decision this week, in which it is expected to raise interest rates by 25 basis points.
Technically, we expect the index to rise during today’s trading and target the resistance levels around 102.100, around which we monitor the price action , as it is likely to rebound downwards around it again.
Gold – 1 Hour Timeframe
Xauusd prices declined by the opening of Monday’s sessions, affected by the positivity of US data, awaiting the manufacturing PMI data today.
Technically, gold prices are moving sideways around the 38% Fibonacci retracement levels and the 200 average for the 4-hour period, continuing below the 1986.35 resistance, suggesting further declines to 50% levels around 1966.75, then 1958.65 USD.
US Dow Jones – 1 Hour Timeframe
The Dow Jones Industrial Average declined slightly in the early hours of this morning, after touching strong resistance levels around 34135, forming bearish price action on momentum indicators.
Technically, we expect the index to witness an extended bearish corrective movement during today’s trading, targeting support levels around 34005 points.
US Crude Oil – 4 Hour Timeframe
Oil prices rose at the end of last week after the decline in prices with the rise in US oil inventories.
Technically, oil prices move between 38% Fibonacci levels and the 100-hour average. We see that prices are still in a downward trend, but first we need to break below 38% levels and $75.90 to resume the downward movement, targeting $75.40.
Bitcoin – 1 Hour Timeframe
Bitcoin prices fell on the first day of the week’s sessions after failing to breach the $30,000 resistance last week.
Technically, prices move between 50 and 61.8% Fibonacci levels, with resistance forming at the 200 hourly average, so we see a continuation of the bearish movement as long as prices continue below 28530, targeting support 28190 again, and if broken, the drop will continue towards 27,500 USD.
EUR/USD – 1 Hour Timeframe
Trading around the levels that we mentioned at the end of last week, the euro pair continued to decline against the US dollar by the opening of this week’s trading, after bouncing down from the resistance levels around 1.10316.
Technically, we expect more declines on the pair during today’s trading, targeting support levels around 1.09830.
GBP/USD – 1 Hour Timeframe
The (GBP/USD) pair climbed last week, before prices witnessed a decline in the early hours of Monday morning.
Technically, the pair currently retraces from the high of 1.2583 in a downward corrective movement that may extend to 1.2526 and 1.2515, and if broken, the drop will continue to the 100 hourly average around 1.2480.
GBP/JPY – 1 Hour Timeframe
The (Pound/Yen) pair continued to rally upwards by the beginning of trading today, Monday, after rebounding from the support levels around 165.50, and breaching the resistance levels around 170.40.
Technically, we expect the pair to continue climbing, targeting the resistance levels around 173.095, around which we may see a decline in an attempt to initiate a retracement.
