Top News in Global Markets:
Standard & Poor’s Global released its Manufacturing PMI for Canada, which came higher than previously in April.
The Institute for Supply Management released the Purchasing Managers’ Index (PMI) for the US manufacturing sector, and the reading was higher than the previous and expected reading in April.
Most of the indices of the Asian session slightly rose during today’s session.
The Reserve Bank of Australia this morning raised interest rates by 25 basis points.
Key things to watch during today’s trading:
Purchasing Managers’ Index for the Eurozone from Standard & Poor’s Global for the month of April.
Survey of job openings in the United States for the month of March.
Technical Analysis
Dollar Index – 4 Hour Timeframe
The US dollar index rose after inflation expectations rose again, in addition to positive US data, and growing expectations about the Fed’s rate hike.
Technically, the index formed a support area around 38% Fibonacci levels, from which it climbed upwards, penetrating the resistance areas of 101.950, bringing the index to 102.180 points. If this resistance is breached, the index will continue to rise towards the moving average 200, around 102.40 points.
Gold – 4 Hour Timeframe
Yesterday, the yellow metal prices rose and succeeded in breaching the $2000 levels, but soon fell back again with the improvement of the US ISM Manufacturing Purchasing Manager Index.
Technically, buyers failed to keep gold prices above the levels of $2000, so that control returned to the sellers again. Prices move sideways below the 38% Fibonacci area and the average of 200, so we see that the downward trend continues until the 50% Fibonacci levels around the $1967.25 price.
US Dow Jones – 1 Hour Timeframe
The Dow Jones rose yesterday after the Manufacturing PMI showed positive data, before falling again below the resistance levels. The index has been trading slightly higher since the early hours of this morning.
Technically, we expect the index’s downward movement to continue to 33,750 points, if it remains below the resistance levels of 34,105 points.
US Crude Oil – 1 Hour Timeframe
Oil prices stabilized after expectations of a Fed interest rate hike, the banking crisis, modest economic data from China, as well as OPEC+ cuts
Technically, oil prices are still moving sideways below the 38% Fibonacci area and $75.90 levels. If it stays below the resistance, the drop will continue until the $75.20 support.
Bitcoin – 1 Hour Timeframe
The decline of the digital currency Bitcoin continued after the positive data of the US PMI.
Technically, prices fell below the 200-hour moving average with a sideways move below this level since the early hours of this morning, so we expect the decline to continue until the $27,500 support, which if broken, we will witness a rapid drop towards $27,000 levels.
EUR/USD – 1 Hour Timeframe
The (Euro/Dollar) pair fell yesterday with the positive data of the US PMI, before returning to the upside in a corrective movement by the start of today’s European trading session.
Technically, we expect the corrective movement to continue upwards until 1.1000 levels, before returning once again to the decline, targeting 1.0945 support levels.
GBP/USD – 1 Hour Timeframe
The (Pound / Dollar) pair fell yesterday, in continuation of the downward movement that started since yesterday and the beginning of the week.
Technically, the pair is trading between the levels of 38% and 50% of Fibonacci retracements, to continue moving sideways while awaiting today’s data, so we see that if the support area of 1.2475 is broken, the drop will continue towards 1.2430 levels, and on the other hand, if prices return above levels of 38% Fibonacci. The bullish trend will continue towards 1.2525 levels.
GBP/JPY – 4 Hour Timeframe
The yen is still witnessing a significant decline against the basket of other currencies, especially the (pound/yen) pair, as the upward trend of the pair continued near 171.00 levels, reaching its highest level ever.
Technically, we expect that if 172.00 levels are breached, the path will be open for the pair to test the next resistance around 173.50, on the condition that prices hold trading above the 170.90 support area.
