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Market Research & Info

Land-FX analyst Shadi Abdo

  • Member of The Egyptian Society of Technical Analyst
  • Head of Education department, Market Strategist, Chief Technical Analyst of Global Leading Forex Brokerage companies
  • Trained over 5000 professional trainers more than 10 years
  • BSc in Economics from Mansoura University

23 May 2019

powered by Land-FX

Euro-zone PMIs: Thursday morning: France at 7:15, Germany at 7:30, and the euro-zone at 8:00. Markit’s forward-looking surveys are well-correlated with actual growth figures and are closely watched by markets. The most significant indicator is Germany’s manufacturing purchasing managers’ index. The score stood at 44.4 points in May, showing that the locomotive of the euro-zone is contracting quite substantially. Any score below 50 represents contraction. The services sector is doing better, and not only in the continent’s largest economy but at 52.8 points, the currency bloc is only experiencing meager growth. Markets will want to see improvements now.

ECB meeting minutes: Thursday, 11:30. The European Central Bank left its policy unchanged but reiterated that risks are moving to the downside. While some economic indicators have been improving, uncertainty remains high in light of the US-Chinese trade war, Brexit, and other factors. The document will likely repeat a cautious outlook.

European elections: Thursday-Sunday. Citizens of the 28 member states, including the UK, will vote in a new European parliament. The body, based in Brussels and in Strasbourg, has limited clout over European matters, but its voice and its composition are important. Anti-immigration, euroskeptic parties are expected to make considerable gains after five turbulent years that saw an immigration crisis, Brexit, the rise of Donald Trump, rising employment, but high uncertainty about the future. A substantial gain for radical parties may weigh on the euro. A special focus will be given to the vote in the UK. If the ruling Conservative Party comes out with a poor outcome, the pressure on PM Theresa May to resign will likely mount. An unimpressive result for the opposition Labour will also increase the internal divide. The vote may prove a turning point in the never-ending Brexit process.

 

 

EUR
Euro-zone PMIs
ECB meeting minutes
European elections

  • EURUSD

 

The daily timeframe shows that the pair is traded above a strong support level that is 1.1118. We will be waiting for the pair to show up some bullish evidence then we can go long targeting the level of 1.1217 during the week. This is conditioned by the continuation of trading above the support level of 1.1118.

 

Resistance levels: Support levels: Recommended:
 1.21
1.1850
▪ 1.1217
▪ -
 -
 1.1118

Waiting for the pair to show up some bullish evidence.

  • GBPUSD

 

The chart above shows that the pair is about to reach a strong support level that is 1.2550 – 1.2500. We will be waiting for the pair to reach this area, then in case it shows up some bullish evidence, we can go long targeting the level of 1.28 during the week.

 

Resistance levels: Support levels: Recommended:
▪ 1.36
 1.3310
▪ 1.33
 -
 1.27
 1.26

Waiting for the pair to reach the support level.

  • GOLD

 

The chart above shows that the pair is traded above a strong support level that is 1265. Therefore, we are bullish as long as the pair is traded above it. Our first target is 1282.

 

Resistance levels: Support levels: Recommended:
 1350
 1365
 1245
 1260
 1265
We are bullish as long as the pair is traded above the level of 1265..

  • AUDUSD

 

The pair is traded in a very tight range as could be seen on the chart above. We might wait for the pair to reach the resistance level of 0.70 then we can go short targeting the level of 0.6788 in case the pair shows up some bearish evidence.

 

Resistance levels: Support levels: Recommended:

▪ 0.7550
0.7600
▪ 0.
7000

▪ 0.6788
-
▪ -

We are bearish as long as the pair is traded below the level of 0.70.

  • GBPJPY

 

As could be seen on the chart above that the pair is traded above a strong support level that is 139 so we will be waiting for the pair to show up some bullish evidence then we can go long targeting the level of 141 during the week.

 

Resistance levels: Support levels: Recommended:
156
 155
 141

 139
138
 137

Nothing to be done for now.


 

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