XAUUSD
Prediction: Increase
Fundamental Analysis:
XAU/USD continued to rise as it had in the previous trading day. On Wednesday, the price of spot gold jumped by over $28. The increased expectations of interest rate cuts by the Federal Reserve and a drop in U.S. Treasury yields are boosting gold prices. Additionally, tensions in the Middle East are driving investors to buy gold as a safe haven. On Wednesday, the commander of Iran's Revolutionary Guards warned that Israel will "pay the price" for Monday's airstrike in Syria, saying Israel must "pay with blood." Spot gold closed up $28.45 on Wednesday, a 1.22% increase, reaching $2355.11.
Technical Analysis:
Our attention is fixed on the critical $2,325 level for the upcoming week, historically significant and poised to steer trading dynamics. A sustained momentum above this mark could fuel further buying interest, potentially paving the way for fresh highs. Conversely, a bearish tilt below $2,325 might signal a resurgence of bearish sentiment.
EURUSD
Prediction: Increase
Fundamental Analysis:
The EUR/USD pair is around $1.088, even though the US Dollar strengthened during early trading in Asia on Thursday. The main focus later on Thursday will be the European Central Bank (ECB) interest rate decision and a press conference by President Christine Lagarde. The ECB is expected to lower interest rates by 0.25% at its meeting on June 6. This difference in actions between the ECB and the US Federal Reserve might put some selling pressure on the Euro and could cause the EUR/USD pair to face some challenges.
Technical Analysis:
If bulls maintain control, EUR/USD may test the June high of 1.0916 (June 4), then the March top of 1.0981 (March 8) and the weekly peak of 1.0998 (January 11), all before reaching the important 1.1000 level. If the bearish tone returns, the pair may initially retest the weekly low of 1.0788 (May 30), which is supported by the 200-day SMA. A drop below this area may push spot to the May low of 1.0649 (May 1), ahead of the 2024 bottom of 1.0601 (April 16). So far, the 4-hour chart reveals some consolidative development in the near term. The next downward obstacle is the 55-SMA (1.0851), followed by 1.0788 and 1.0766. On the positive side, 1.0916 comes out ahead of 1.0942. The relative strength index (RSI) dropped to about 50.
USDJPY
Prediction: Increase
Fundamental Analysis:
The Japanese yen experienced its biggest drop in over a month because strong U.S. economic data pushed the dollar higher. This ended the yen's two-day rise against the US dollar. The U.S. Institute for Supply Management (ISM) business activity index boosted the dollar, causing the yen, which had been weak earlier on Wednesday, to fall even further. The trend of the USD/JPY exchange rate will continue to depend on key U.S. economic data.
Technical Analysis:
From a technical perspective, the USD/JPY remains upward biased despite retreating toward the 50-day moving average (DMA) at 154.82 on Tuesday. However, buyers lifted the exchange rate towards current levels, forming a ‘bullish harami’ candlestick chart pattern that could open the door for further gains.Short-term momentum is on the buyers’ side, as depicted by the Relative Strength Index (RSI) standing in bullish territory. The USD/JPY first resistance would be the 156.50 mark. A breach of the latte will expose the May 30 high of 157.68 before rallying toward the April 26 high of 158.44. Up next would be the year-to-date (YTD) high of 160.32. On the flip side, the USD/JPY's first support would be 156.00.
BTCUSD
Prediction:
Fundamental Analysis:
Bitcoin has surpassed the $70,000 level again and has risen for the fifth consecutive trading day. This reflects increased confidence in the global market about the possibility of the Federal Reserve cutting interest rates this year. After data showed that U.S. inflation is slowing and the job market is weakening, traders are betting that the Fed is more likely to cut rates as early as November. Some Treasury yields have seen their biggest drop of the year over the past two days. This easing of financial conditions could benefit speculative assets like cryptocurrencies.
Technical Analysis:
The bitcoin price is still at a bull trend phase and as it is staying in the 0.618 - 1 fibonacci zone. Price is still above the 50 and 200 day moving averages. Once the price reaches pass $72000. We should see the bitcoin price go for ATH at ~$73500.
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