Global macro overview for 12/05/2017

Forex analysis review
Global macro overview for 12/05/2017

Daily analysis of Gold for May 12, 2017

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Overview

Gold price is fluctuating near the initial resistance of 1,229.32, which is met by the EMA50 to add more strength to it, while stochastic is approaching from the overbought areas now. Therefore, these factors encourage us to expect the bearish trend in the upcoming sessions. The first target is represented by testing 50% Fibonacci correction at 1,208.92. Please note that breaking it will push the price towards 1,188.52 directly, while breaching 1,229.32 represents the first upward target to regain the main bullish trend. The metal could head towards the most important resistance in the short term to trade at 1,254.56. The expected trading range for today is between 1,208.00 support and 1,235.00 resistance.

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AUD/USD bouncing up nicely, remain bullish

Price has started to bounce up nicely from our buying level. The plan today is to remain bullish above major support at 0.7332 (Fibonacci extension, Elliott wave theory) and we expect a bounce above this level to at least 0.7426 resistance, (Fibonacci retracement, horizontal swing high resistance).

Stochastic (55,5,3) has made a bullish exit meaning that a further rise can be expected.

Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We are expecting a rise on AUD/USD and a rise on NZD/USD which goes well with the positive correlation expected.

Buy above 0.7332. Stop loss at 0.7290. Take profit at 0.7426.

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Daily analysis of Silver for May 12, 2017

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Overview

Silver price breached the minor bearish channel resistance, which might push the price to test the key resistance ceiling at 16.56 before turning back to resume the bearish trend again. As we notice the EMA50 keeps putting downward pressure on the price, while stochastic reaches the thresholds of the overbought areas. Therefore, we will stick to the overall bearish scenario unless the metal clearly breaches 16.56 level and holds above it. Let me remind you that our main target is located at 15.49. The expected trading range for today is between 15.90 support and 16.50 resistance.

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EUR/USD bouncing off major support, remain bullish

EUR/USD has bounced off our buying area. The plan for today is to remain bullish above 1.0853 support (Fibonacci retracement, horizontal support) for a push up to 1.0948 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing major support above 2% from where we expect a bounce.

Correlation analysis: EUR/USD and USD/CHF are negatively correlated which means that they usually move in opposite directions. We're expecting a drop in USD/CHF which goes in line with the rise we expect on EUR/USD.

Buy above 1.0853. Set stop loss at 1.0787 and take profit at 1.0948.

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USD/CHF testing major resistance, prepare to sell

USD/CHF is testing the major resistance at 1.0100 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from this level to at least 1.0000 support (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing the major resistance below the 97% level from where we expect a drop.

Correlation analysis: EUR/USD and USD/CHF are negatively correlated which means they usually move in opposite directions. We're expecting a rise in EUR/USD which goes in line with the drop we're expecting on USD/CHF.

Sell below 1.0100. Set stoop loss at 1.0160 and take profit at 1.0000.

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The material has been provided by InstaForex Company - www.instaforex.com