A big sigh of relief was heard in European capitals and throughout markets. But while French stocks extend their gains, the euro extends the move, but to the downside. The euro is sliding against the dollar with EUR/USD trading at 1.0935. The low was 1.0930 so far. And this phenomenon is not unique to the world’s most [...]
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In this article, we will give some possible outcomes for EURUSD, GBPUSD and USDJPY based on technicals and fundamentals.
EURUSD
The EURUSD pair traded very close to the 1.10 level during the Asian session, but fell with London open as traders awaited the US jobs report. The pair still hovers above the last week’s high on Tuesday, which is an important resistance-turned-support line at 1.0950. The hawkish tone of the Fed’s FOMC statement, stating that the recent slowdown of growth is just “temporary” and that the job market will likely “strengthen” in the coming period, also gave backwind to a stronger dollar. The jobs data from the United States showed that the world’s largest economy added 211K new jobs vs. 197K expected, which is a significant gain compared with the previous month’s figure of 79K.
The unemployment rate fell to 4.5% from last month’s 4.6%, while the expected rate was 4.5%. Average hourly earnings met the expectations of a 0.3% rise, compared to previous 0.1%. The explicit tone of the Fed’s statement has already given a hint that the reported NFP figures could be better than expected. With the following French election, the euro will remain in the market’s focus. The EURUSD pair is currently trading in a channel with a positive trendline. Pullbacks now will offer buying opportunities off short-term charts, and the 1.10 level above continues to be a target. A break above sees the next resistance level at $1.1150. With a definite win of Macron on Sunday, the euro will eventually stabilize above the $1.10 level.
Price Targets for EURUSD – May 2017
GBPUSD
The British pound is trading above an important support line, after breaking the resistance at $1.2850. As long as the pound remains above this level, it is a bullish sign. The British pound initially fell during Friday but found enough support underneath the 1.2850 level to turn around and form a bullish candle. The pair is still in a sideways type of market, with the round number of 1.30 acting as a strong resistance. The UK recently announced snap elections in June, which gave strength to the sterling. A longer-term target, supported by a research-note issued by the Swiss UBS, is the 1.35 area. This is also the purchasing power parity exchange rate of the pound. As momentum picks up, a break above 1.30 could see the pound rising further to the 1.3450 resistance level. If we break down below the 1.2750 level, the next target is the 1.2550 level.
Price Targets for GBPUSD – May 2017
USDJPY
The USDJPY pair trades in a downtrend channel since beginning 2017. The pair tried recently to break the 113.00 level, but found heavy round number resistance confluenced with the upperline of the channel. The NFP number released today did help the dollar to gain initially, hitting the 112.75 level, but after that followed a small correction. Bank of Japan’s Kuroda announced that prices and wages in Japan are like to rise in the medium-term. “[A projected growth rate of] 1.5 percent is not great, but in Japan it is well above medium-term potential growth rate, meaning that the output gap continues to shrink and becoming positive and the labor market continues to tighten so that wages and prices would eventually rise to achieve the 2 percent inflation target around fiscal 2018,” Kuroda said. On a weekly chart, the pair retraced off the 61.8 Fibonacci level. A break above 113.00 could the pair see heading toward the 115.50 resistance, while a bounce off the upper trendline could send the pair toward the April low of 108.00. Technically, the pair is still in a long-lasting downtrend.
Price Targets for USDJPY – May 2017
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GBPUSD has been trying to go towards the upside. The last two days the price has been making higher highs. Today the price has been trending towards the North after having a good support at an important level. If we see a breakout at the last week’s higher high, then there is a good chance that the price would head towards the upside by offering us a long entry. Let us have a look at the H1-GBPUSD chart…
GBPUSD Free Forex Trading Signals – 8th May 2017
As we see on the chart, that the price started its long journey from the level of 1.28450 and found its resistance at 1.29860. Today, the price came up to 1.29860. Then, it started going towards the upside. If it makes a breakout at 1.29860, then taking a long entry should get us some green pips as far as this chart and trader setup are concerned.
Let us have a look at the summary of the trade
The way the price has been going towards the upside, it is more likely that we get a breakout on this rally. However, it might come down and make a breakout by making a “Double bottom”. If that happens, that would be even better. To make a Double bottom, the price might come a bit further down from the current support level. That would not invalidate the trade setup. As long as we get the breakout, we are good to take the long entry as this trade setup suggests.
You can also take a look at our previous (and most likely profitable) Free Forex Trading Signals Here.
We hope that you enjoy our Free Forex Trading Signal today: GBPUSD Free Forex Trading Signals – 8th May 2017
The post GBPUSD Free Forex Trading Signals – 8th May 2017 appeared first on Advanced Forex Strategies.
It was August of 2005 when meteorologists announced the impending arrival of Hurricane Katrina to the shores of South Florida, where I was then residing. As we usually did when a storm of this magnitude was announced, we stocked up on non-perishable food, water, and batteries and shuttered in our windows. We were as ready [...]
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