[FOREX TIP] AUDUSD Monthly Forex Forecast for May 2018

AUDUSD Monthly Forex Forecast for May 2018

The Aussie is challenging the big psychological number 0.7500, but as long as we trade above this level on a weekly basis, there is a chance that we’re going to see Aussie starting to pullback and recover some of the previous losses. We can’t rule out a short-term fake breakout below the previous swing low before the bulls can take control.

On the upside, the first resistance levels come at 0.7650 from where we can expect a reaction lower. A daily break and close above 0.7650 can open up the door for a retest of a more significant resistance level 0.7800. The stochastic indicator is already in oversold territory and couple with the fact that the Australian dollar tends to rally during the month of May according to its seasonal pattern. The RBA seems poised to keep rates unchanged for the rest of the year so the monetary policy theme doesn’t provide us with a catalyst to drive the Aussie exchange rate. This makes the AUD/USD more sensitive to the technical levels unless some new unexpected macro theme comes into sights.

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AUDUSD Monthly Forex Forecast for May 2018

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[FOREX TIP] USDCAD Monthly Forex Forecast for May 2018

USDCAD Monthly Forex Forecast for May 2018

The broad based dollar strength that we experienced during the last days of April has helped the USDCAD to recover as well. The USDCAD has started to rally from near the big psychological number 1.2500 which signals institutional buying power. However, we’re still trading within a wide trading range and in order for a bullish trend to emerge; we need to break above the current swing high 1.3125. The big psychological number 1.3000 remains the first hurdle for the bulls, however technically speaking the region from 1.2920 to 1.3000 is our major resistance level from where we can see a minor reaction before the current bullish run resumes.

On the downside, we have a support level at 1.2645 but the critical level remains the last swing low 1.2530 which if broken can invalidate the bullish case scenario. On a fundamental level, the biggest threat to the Canadian dollar remains the trade threats and the NAFTA renegotiation terms which can have a negative impact in the short-term for the Canadian dollar.

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USDCAD Monthly Forex Forecast for May 2018

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[FOREX TIP] GBPUSD Monthly Forex Forecast for May 2018

The GBPUSD is in the process of reversing the previous trend or at least to develop a significant pullback after it has posted a massive bearish divergence on the daily chart. The also Cable made a new yearly high touching the 1.4376 level from where it sold off because the move was lacking the necessary momentum to push forward. We’re also trading below the big psychological level 1.4000 which is extremely bearish from a technical point of view.

Only a strong weekly and daily close above the 1.4000 can put the bulls back on the spot until then we should expect further weakness. On the downside the first major level of support only comes at 1.3715 but we can’t rule out first a false break below 1.3715 before any significant rally to be seen. The Pound strength since the beginning of the may weigh on the BOE’s ability to hike rates in the near future. The BOE Governor Mark Carney in recent comments has also hinted that a raise in interest rates during May meeting is less probable which has been the catalysts for the bearish momentum seen recently with the GBPUSD. 

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GBPUSD Monthly Forex Forecast for May 2018

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