XAUUSD
Fundamental Analysis:
Gold prices rose in Asian trade on Friday as signs of a cooling U.S. economy fed some demand for the yellow metal, although gains were limited in anticipation of more rate cut cues from key inflation data.
The yellow metal was also set for steep weekly losses after tumbling from near record highs over the past five sessions, as traders largely priced out expectations for early U.S. interest rate cuts.
Technical Analysis:
The price of gold fell after testing the support level of the bullish channel it had previously broken. Gold prices briefly pushed down to $2325.90 per ounce, suggesting a possible return to a downward correction. For gold to continue falling to its next target of $2260.60 per ounce, it needs to drop below $2325.90 per ounce.
USDJPY
Fundamental Analysis:
USD/JPY continued rising after the release of March core Personal Consumption Expenditures Price Index (PCE), the US Federal Reserve’s (Fed) preferred gauge of inflation.
US Core PCE showed a higher-than-expected reading of 2.8% YoY, when analysts had expected 2.6% from 2.8% previously, according to the US Bureau of Economic Analysis (BEA).
After USDJPY reaches the $160, we see a massive sell off all the way back to 155 and now regaining its support to reach back to 156. We look for USDJPY to retouch 158 and look for a drop to previous support levels
US Monetary Policy: The Federal Reserve's interest rate decisions significantly impact the USD. Rising rates tend to strengthen the USD compared to the Yen (known for its low-interest rates).
Bank of Japan Intervention: The Bank of Japan (BOJ) might intervene to weaken the Yen if it appreciates too much. Recent news suggests a potential short position based on BOJ intervention and overbought technical indicators.
Japan's Economic Health: A stronger Japanese economy could lead to a Yen appreciation against the USD.
Technical Analysis:
The Relative Strength Index (RSI) on the daily chart shows that the market is very overbought. This led to aggressive selling at the start of the new week. It's expected to find good support around the 157.00 mark, which is where the ascending channel's resistance breaks. This point is important because if it's broken strongly, it could change the short-term direction in favor of sellers and lead to a significant drop in prices.
EURUSD
Fundamental Analysis:
European stock markets rose Monday, as investors digested a slew of significant corporate earnings ahead of the release of key German inflation data.
In economic news, Spanish consumer prices rose 3.3% on an annual basis in April, a monthly increase of 0.7%
This remained above the European Central Bank’s 2% medium-term inflation target, but more attention will be paid to the German state CPI data, due later in the session, given the importance of the German economy within the eurozone.
Technical Analysis:
The 14-period Relative Strength Index (RSI) is now between 40.00 and 60.00, suggesting things might stay the same for a while. The EUR/USD is trying to stay above 1.0700. It has been going up from 1.0600 to 1.0700, but we're not sure what will happen next. The Euro bulls are having trouble getting past the 20-day Exponential Moving Average (EMA) near 1.0720.
BTCUSD
Fundamental Analysis:
Bitcoin’s Latest Halving Sends Hash Price Into Freefall
As Bitcoin underwent its fourth halving event on April 20, expectations were high regarding a potential increase in miner revenue. However, contrary to these expectations, the hash price witnessed a steep decline, currently valued at less than $50 per PH/s per day.
Technical Analysis:
Bitcoin price went up from $61,700. It's going up more now. According to the RSI, it still has enough strength to keep going up in the next few hours. The investors believe it will reach the $67000 soon.
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