EUR/USD analysis for May 03, 2018

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Recently, the EUR/USD has been trading sideways at the price of 1.1990. According to the H1 time frame, I found a potential bullish corrective phase in progress, which is a sign that buying looks risky and limited. My advice is to watch for a potential breakout of the upward channel (bearish flag), to confirm further downward continuation. The downward targets are set at the price of 1.1938 and at the price of 1.1915.

Resistance levels:

R1: 1.2008

R2: 1.2067

R3: 1.2102

Support levels:

S1: 1.1915

S2: 1.1915

S3: 1.1880

Trading recommendations for today: watch for potential selling opportunities.

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Analysis of Gold for May 03, 2018

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Recently, the Gold has been trading upwards. The price tested the level of $1,317.65. Anyway, according to the M30 time frame, I found a potential end of the upward correction (ABC flat), which is a sign that buying looks risky. I also found that sellers respected the upward diagonal in the background, which is another sign of weakness. My advice is to watch for potential selling opportunities. The downward target is set at the price of $1,306.00.

Resistance levels:

R1: $1,311.03

R2: $1.317.31

R3: $1,321.12

Support levels:

S1: $1,300.95

S2: $1,297.13

S3: $1,290.85

Trading recommendations for today: watch for potential selling opportunities.

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Bitcoin analysis for May 03, 2018

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The Bitcoin (BTC) has been trading Upwards. The price tested the level of $9.241. Goldman Sachs is reportedly launching a bitcoin trading operation where it will trade bitcoin futures contracts on behalf of clients using its own money, starting as early as the next few weeks. The Wall Street investment firm will also offer its own bitcoin futures product to clients. Technical picture on Bitcoin looks bearish.

Trading recommendations:

According to the H1 time - frame, I found that price successfully tested the major supply trendline in the background, which is a sign that buying looks risky. According to the structure, I expect a downward wave and potential testing of $8.786, Anyway, watch for a valid breakout and successful re-test of the upward channel before you start your potential sell positions.

Support/Resistance

$9.242 – Intraday resistance

$9.123– Intraday support

$8.786 – Objective target

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Daily analysis of EUR/JPY for May 3, 2018

EUR/JPY

This cross continues to slip further southwards. It has shed 110 pips this week, and about 180 pips since last week. Price is now below the supply level at 131.50, going towards the demand level at 131.00, which is the immediate target for bears. The demand level may even be breached to the downside.

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There is a Bearish Confirmation Pattern in the market. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. Meanwhile, short trades do not currently look logical or rational.

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Daily analysis of USD/JPY for May 3, 2018

USD/JPY

The USD/JPY is consolidating in the context of an uptrend. The market is now above the demand level at 109.50 and it could reach the supply level at 110.00. Some fundamental factors are still expected today, and they may have impact on the market. They may even support the ongoing bullish bias.

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Owing to the current bullish effort in the market, price could go further upwards, but that would be a temporary thing, owing to the expected reversal in the market.The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50.

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Daily analysis of USD/CHF for May 3, 2018

USD/CHF

The pair has almost tested an important level at 1.0000, because it retraced.The next target is the resistance level at 1.0000, which is a major resistance level (a psychological level). The USD/CHF has gone upwards this week, and this seems to be the beginning of a great bullish momentum in the market (given the stamina in USD).

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The EMA 11 is above the EMA 56, and the Williams' % Range period 20 remains in the overbought region. There is a Bullish Confirmation Pattern in the market, which portends further rally northwards.

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BITCOIN Analysis for May 3, 2018

Bitcoin is still consolidating in the mid-range of $8500 to $10,000 area from where the price is expected to push higher towards $10,000. The price is currently residing above $9000 area from where the price has greater probability of pushing higher. Though there are certain chances that the price will retrace towards $8500 area before showing any impulsive bullish momentum but as per current Kumo Cloud and Dynamic Level supports of 20 EMA, Tenkan and Kijun line building up, the price may not push lower before making a higher leap in the coming days. There has been certain speculation that if the price manages to break above $12,000 with a daily close, the impulsive bullish pressure is going to return to the market and the price is going to push higher with much impulsive pressure than before. As of the current scenario, the price is currently struggling to provide any definite bullish evidence in the process as expected but as the price remains above $8500, the bullish bias is expected to continue further in the coming days.

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Fundamental Analysis of AUD/USD for May 3, 2018

AUD/USD was being dominated by USD since the price bounced off the 0.78 area with a daily close which leads the price to be non-volatile with the bearish gains. This week RBA Statement and AUD Cash Rate report was published with an unchanged value of 1.50% which did help the currency to gain certain momentum against USD in the process.

Today AUD AIG Service Index report was published with decrease to 55.2 from the previous figure of 56.9, Trade Balance report was published with an increase to 1.53B from the previous figure of 1.35B which was expected to decrease to 0.68B and Building Approvals report also showed significant increase to 2.6% from the previous negative value of -4.2% which was expected to be at 1.1%. The positive economic reports did help AUD counter impulsively against the USD non-volatile bearish trend today, which is expected to lead to further bullish momentum in the pair.

On the USD side, today USD Non-Farm Productivity report is going to be published which is expected to increase to 0.9% from the previous value of 0.0%, Prelim Unit Labor Cost is expected to increase to 3.1% from the previous value of 2.5%, Unemployment Claims report is expected to increase to 225k from the previous figure of 209k and Trade Balance report is expected to have less deficit by increasing to -50.0B from the previous figure of -57.6B. Additionally, USD Final Services PMI report is going to be published which is expected to be unchanged at 54.4, ISM Non-Manufacturing PMI is expected to decrease to 58.1 from the previous figure of 58.8, Factory Orders are expected to increase to 1.3% from the previous value of 1.2% and Natural Gas Storage report is expected to show an increase to 47B from the previous negative figure of -18B.

To sum up, USD economic reports forecasts are quite mixed in nature whereas AUD has already proven to have better economic reports results in comparison, where certain mixed results on the USD on the upcoming economic reports are expected to lead to further gain on the AUD side in the coming days. As of the current scenario, AUD is expected to have an upper hand over USD despite the upcoming economic reports results to be published.

Now let us look at the technical view. The price is currently residing at the edge of 0.7550 area from where it is expected to push higher towards 0.77-0.7750 area in the coming days. In the intraday charts, certain Bullish Divergence has been observed forming which is expected to increase the probability of further bullish pressure in the process. As the price remains above 0.75 area with a daily close, the bullish bias is expected to continue further.

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Fundamental Analysis of USD/CHF for May 3, 2018

USD/CHF has been non-volatile with the bullish gains since it broke and retested the 0.9450 area. Recently published positive economic reports on the USD side did help the currency to dominate CHF in the process whereas CHF was struggling with worse economic reports.

Ahead of the high impact economic reports to be published tomorrow including NFP, Average Hourly Earnings, and Unemployment Rate, Today USD Non-Farm Productivity report is going to be published which is expected to increase to 0.9% from the previous value of 0.0%, Prelim Unit Labor Cost is expected to increase to 3.1% from the previous value of 2.5%, Unemployment Claims report is expected to increase to 225k from the previous figure of 209k and Trade Balance report is expected to have less deficit by increasing to -50.0B from the previous figure of -57.6B. Additionally, USD Final Services PMI report is going to be published which is expected to be unchanged at 54.4, ISM Non-Manufacturing PMI is expected to decrease to 58.1 from the previous figure of 58.8, Factory Orders are expected to increase to 1.3% from the previous value of 1.2% and Natural Gas Storage report is expected to show an increase to 47B from the previous negative figure of -18B.

On the other hand, recently CHF SECO Consumer Climate report was published with decrease to 2 which was expected to be unchanged at 5, Retail Sales decreased to -1.8% from the previous value of -0.2% which was expected to increase to 0.3% and Manufacturing PMI report was published with an increase to 63.6 from the previous figure of 60.3 which was expected to decrease to 59.9.

As of the current scenario, the market sentiment has been favoring USD along the way whereas the mixed economic reports published on the CHF side fueled the USD to gain more momentum in the process. Ahead of the upcoming series of high impact economic reports to be published today and tomorrow, USD is expected to be quite volatile with its gains while trying to sustain the bullish momentum in the pair. Despite the economic reports results of USD which are forecasted to have mixed results, CHF is expected to regain some momentum along the way for a certain period of time before USD takes the lead again in the future.

Now let us look at the technical view. The price is currently residing at the edge of 1.00 resistance area from where it is expected to push lower towards 0.9850 and later towards 0.97 in the coming days. Certain Bearish Divergence has been spotted along the way which is expected to add to the probability of upcoming bearish momentum in the pair. As the price remains below 1.00 area, a certain bearish pressure is expected in this pair for the coming days.

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Technical analysis of GBP/JPY for May 03, 2018

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GBP/JPY is expected to trade with a bearish outlook. The pair is accelerating on the downside, capped by its descending 20-period and 50-period moving averages. The key resistance at 149.70 maintains the strong selling pressure on the prices. Last but not least, the relative strength index is bearish and calls for further downside. In these perspectives, as long as 149.70 is not surpassed, likely decline to 148.35 and 147.85 in extension.

Fundamental:

Business activity in the U.K. services sector rebounded in April from a 20-month low in March, a survey showed Thursday.The reading marked a bounce in the U.K. services sector on month, although the figure was still the index's second-lowest reading since September 2016

Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.

Resistance levels: 150.10, 150.55, and 151.15

Support levels: 148.35, 147.85, and 147.00

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Global macro overview for 03/05/2018

Although not all data published on Wednesday regarding the economic condition of the European Union countries surprised positively, green digits clearly dominated on the stock exchanges in the Old Continent.

The Wednesday's rich macroeconomic readings began in Europe since the PMI publication for the Swedish industry. The mood deteriorated, as the indicator dropped from 55.9 points to 54.5 points. Later weaker PMI readings were also recorded by Hungary (down from 56.6 points to 53.5 points), Spain (down from 54.8 points to 54.4 points), Czech Republic (down from 57.3 points to 57, 2 points), Italy (down from 55.1 points to 53.5 points), Germany (down from 58.2 points to 58.1 points) and the entire Eurozone (down from 56.6 points to 56, 2 points). On the other hand, only in the case of Hungary and Italy, the reading was clearly lower than expected. Germany or Spain have shot into expectations, and the Czech Republic has even beaten them. In addition, there were also positive surprises: apart from Poland, France was particularly noteworthy, with PMI rising from 53.7 points. to 53.8 points, despite a consensus forecasting a decline.

On Wednesday, the global traders also got to know other readings from Eurozone. The unemployment rate remained stable at 8.5% in March, which was in line with expectations, while GDP according to preliminary estimates increased by 2.5% in the first quarter. Here, however, analysts expected an increase of 2.6%, the previous reading was 2.8%.

In conclusion, there was a mixed bag of macroeconomic data, but in general, there is not much to worry yet. Some countries surprised to the downside, some to the upside, but no major negative developing has been spotted yet.

Let's now take a look at the DAX technical picture at the H4 time frame. After the data were published and digested, the market might now be on its way to the 61% Fibo retracements of the previous swing down which is at the level of 12,882, just above the important technical resistance at the level of 12,742. Nevertheless, the market conditions look overbought and there is a clear bearish divergence between the price and the momentum oscillators, so the level of 12,882 will be a very interesting place to keep an eye on.

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Global macro overview for 03/05/2018

Leaving unchanged monetary policy at the May meeting was a general market scenario, the probability of which far outweighed others. There was no press conference planned. Investors only have to rely on the published statement of the Fed's monetary policy.

As usual, a few moments after the publication of the latest statement, we had an overview of what has changed compared to the last Fed publication. The first noticeable change is the emphasis on employment growth in recent months. The Reserve members also underline a strong rise in investment and inflation, which is approaching 2%. Invariably, the Committee points to moderate economic growth and points to a balanced risk division for the US economy. In today's statement, there was also no statement that economic forecasts in the past months have improved. Probably this deficiency is responsible for the initial declines in the valuation of the US dollar after the publication of FOMC decision.

Let's now take a look at the US Dollar Index technical picture at the H4 time frame. A hawkish announcement regarding the level of inflation was not enough for bulls and there are many indications that the missing sentence about economic forecasts pushes the dollar down despite the new marginal high at the level of 92.83. The immediate support is seen at the level of 92.21, but any breakout below this level would open the road towards the next technical support at the level of 92.00. This scenario is being supported by the extremely overbought market conditions and multi-timeframe bearish divergence between the price and the momentum oscillators.

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Fundamental Analysis of EUR/GBP for May 3, 2018

EUR/GBP has been quite impulsive with the bullish gains after breaking above the 0.87 price area with a daily close. The worse economic reports published in the UK recently had a great impact on the gains of GBP which led to certain weakening against EUR in the process.

EUR has been quite mixed with the recent economic reports results which has led to certain indecision lately. However, as GBP is still losing ground, EUR established sustainable bullish pressure in the pair already. Today, EUR CPI Flash Estimate report was published with a slight decrease to 1.2% which was expected to be unchanged at 1.3%, Core CPI Flash Estimate decreased to 0.7% from the previous value of 1.0% which was expected to be at 0.9% and PPI report was published unchanged as expected at 0.1%. Moreover, today the eurozone's economic forecast was published which had a neutral impact on the market as some risks in further growth has been recently identified.

On the other hand, the UK continued its series of negative economic reports even today having Services PMI report not meeting the expectation of 53.5 which was published with actual figure of 52.8 with certain increase from the previous figure of 51.7. Though GBP showed certain increase in the Services PMI report but not meeting expectation had negative impact on the market sentiment leading to more weakness of the currency in the process.

Now let us look at the technical view. After the recent false break below 0.87 area, the price is currently residing above 0.8750 with a daily close which had confluence from the trend line as support. The price is currently expected to push much higher with target towards 0.90 resistance area in the coming days. As the price remains above 0.87 area, the bullish bias is expected to continue further.

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Technical analysis of NZD/USD for May 03, 2018

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The NZD/USD pair didn't make significant movement yesterday. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 0.6906 or lower. The NZD/USD pair faced resistance at the level of 0.7089, while minor resistance is seen at 0.7049. Support is found at the levels of 0.6955 and 0.6906. Pivot point has already been set at the level of 0.7049. Equally important, the NZD/USD pair is still moving around the key level at 0.7049, which represents a daily pivot in the H1 time frame at the moment. Yesterday, the NZD/USD pair continued moving downwards from the level of 0.7049. The pair fell to the bottom around 0.7010 from the level of 0.7049. In consequence, the NZD/USD pair broke support, which turned into resistance at the level of 0.7010. The level of 0.7089 is expected to act as the major support today. We expect the NZD/USD pair to continue moving in the bullish trend towards the target levels of 0.6955 and 0.6906. On the uptrend: If the pair fails to pass through the level of 0.7010, the market will indicate a bullish opportunity above the level of 0.7010. So, the market will rise further to 0.7049 and 0.7089 to return to the daily resistance. Moreover, a breakout of that target will move the pair further upwards to 0.7089 in order to form the double top.

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Technical analysis of USD/CHF for May 03, 2018

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Overview:

The USD/CHF pair will continue to rise from the level of 0.9927. The support is found at the level of 0.9868, which represents the 61.8% Fibonacci retracement level in the H1 time frame.

The price is likely to form a double bottom. Today, the major support is seen at 0.9868, while immediate resistance is seen at 1.0003. Accordingly, the USD/CHF pair is showing signs of strength following a breakout of a high at 0.9961. So, buy above the level of 0.9961 with the first target at 1.0003 in order to test the daily resistance 1 and move further to 1.0048.

Also, the level of 1.0048 is a good place to take profit because it will form a new double top. Amid the previous events, the pair is still in an uptrend; for that we expect the USD/CHF pair to climb from 0.9961 to 1.0048 today. At the same time, in case a reversal takes place and the USD/CHF pair breaks through the support level of 0.9868, a further decline to 0.9826/0.9800 can occur, which would indicate a bearish market.

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Dollar in the rank of a favorite

FOMC meeting predictably ended with the retention rate at the current level. The stock markets reacted with a slight decrease. The yield of US Treasuries remained virtually unchanged. The text of the accompanying commentary did not contain any clues as to the future actions of the regulator. The markets took this result with some disappointment and the dollar fell slightly.

At the moment, the markets are fully confident that another rate increase will take place in June, and with a high probability, there'll be another one in September. Regarding the fourth increase, opinions are divided and it is the intrigue on this point that is the main factor since the three increases in this year have long been accounted for in quotations.

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Today, the US-China trade talks start in Beijing and apparently, their result will determine the direction of the markets' movement. The US delegation's representatives are as follows: in addition to Treasury Minister Mnuchin and Minister of Commerce Ross, there's a sales representative in the rank of Minister Lighthizer, two presidential assistants, and the US ambassador to China. Despite the fact that the official agenda is to work out a new trade agreement, the underlying reason for the talks is the need to force China to finance the rapidly growing US budget deficit. Ross, in an interview with CNBC said before the trip that if the talks fail, the US can use the provisions of the trade law of 1962, allowing the president to apply measures "to ensure national security." Obviously, the issue is not acute. China is shying away from expanding purchases of US government bonds.

Recently, Trump held talks with Macron and Merkel and could not get the necessary result. Europe fiercely resists, as a change in trade conditions will directly affect the export potential of the eurozone and reduce the competitiveness of European companies in the global market. However, the United States also has no other way out. The US government's interest load is currently at 1.6% of GDP or 9.4% of federal revenues, and will only grow in the future. According to the forecast of the CBO, by 2022 payments for servicing the federal debt will increase to 16% of revenues and therefore, the financing of budget expenditures by traditional methods is hardly possible.

In fact, changing trading conditions is one of the necessary steps that will delay the onset of a technical default. The US has to increase its revenues either by any means necessary or by "pulling down" the growth of the national debt because only through additional borrowing will they be able to close the budget deficit and carry out social programs. It is impossible to increase tax revenues to the budget in the foreseeable future, and it is absolutely unacceptable to reduce social expenditures, since such actions will lead to a noticeable drop in the standard of living.

That's the only way. The pressure is on creditors to force them to continue financing the US economy. And here there is no division into allies or opponents, the pressure on Europe or Japan will be exactly the same as pressure on China.

Against this background, the actual macroeconomic news fades into the background but you can not ignore them anyway. The ADP report on employment in the private sector came in line with expectations, which allows us to hope for optimistic results of tomorrow's labor market report.

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In the foreground, data will not even stand for the total number of new jobs, since it is simply impossible to maintain this indicator at the level of the three-year maximum with the current unemployment rate. The focus will be on the level of pay, the main driver of inflation and consumer demand. It is forecasted that the hourly wage growth will be at 2.7%, as a month earlier, any deviation from this result can significantly affect the dollar rate.

For the combination of factors, there is no reason to expect a weakening of the dollar. Negotiations in China will be held from a position of strength. The demand for government bonds is growing, which indirectly indicates a growing interest in US assets. The dollar will finish the week with growth against most competitors.

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Intraday technical levels and trading recommendations for NZD/USD for May 3, 2018

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The price zone of 0.7320-0.7390 stood as a significant supply zone during recent bullish pullback. The bulls failed to execute a successful Bullish breakout above 0.7400 during the previous week's consolidations.

The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until bearish breakdown of 0.7200 occurred yesterday.

Since April 13, significant bearish pressure has been applied. This probably turns the short-term outlook for the NZD/USD pair into bearish giving considerable significance to the multiple-top reversal pattern.

That's why, bearish breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish projection target would be located around 0.7050 and 0.7000.

The bearish scenario needs obvious bearish persistence below 0.7050 to maintain significant bearish momentum towards 0.7000 and 0.6860. That's why, the price level of 0.7050 is currently considered a key level for the NZD/USD bears.

Any bullish breakout above the price level of 0.7050 hinders further bearish decline allowing bullish pullback to occur towards 0.7170-0.7220.

On the other hand, conservative traders should wait for a bullish pullback towards the price zone of 0.7220-0.7170 (neckline zone) (significant supply zone) for a valid SELL entry. S/L should be placed above 0.7260.

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Intraday technical levels and trading recommendations for EUR/USD for May 3, 2018

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Daily Outlook

The EUR/USD pair remains trapped between the price levels of 1.2200 and 1.2500 until breakout occurs in either directions.

Daily persistence above 1.2470-1.2500 was needed to confirm a recent bullish flag continuation pattern with projected targets around the price level of 1.2750.

However, significant signs of bearish reversal were manifested around the price levels of 1.2400.This was manifested in the bearish engulfing daily candlestick of April 20.

The short-term outlook turns to become bearish as long as the EUR/USD pair keeps trading below the broken uptrend as well as the lower limit of the depicted consolidation range remains broken.

The depicted Multiple-Top pattern needs the recent bearish breakdown of the level of 1.2200 to be maintained on a daily basis. Bearish Projection target would be located around 1.1990, then 1.1880.

Trade Recommendation:

Conservative traders should wait for a bullish pullback towards 1.2190-1.2200 for a valid low-risk SELL entry.

T/P levels should be located around 1.2070-1.1990 while S/L should be placed above 1.2250.

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Burning Forecast 03/05/2018

Burning Forecast 03/05/2018

EURUSD: the possibility of buying.

The main event of the week took place on Wednesday- the Fed. The rate was not raised, and the tone of the Fed statement was quite soft - the Fed does not expect a rapid rise in inflation and acceleration of rate hikes.

On this statement, the euro stopped falling.

We are buying the euro for a breakthrough to the top of 1.2035, stop at 1.1990, profit at 1.2135.

In the event of a reversal downwards, sell from 1.1945, target at 1.1890, are possible.

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Technical analysis on USDX for May 3, 2018

The Dollar index continues to make higher highs and higher lows. Trend remains bullish as price remains inside the bullish channel. The warnings from the RSI bearish divergence are still there but now we have also another reason to exit longs. Price has reached very close to the triangle breakout target.

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Black lines - triangle

Blue lines - triangle breakout target

The Dollar index is above the Ichimoku cloud. Price has reached the triangle breakout target very closely. The 61.8% Fibonacci retracement of the decline from 95.15 is also around this area so Dollar bulls should be very cautious at current levels. Trend remains bullish as long as price is above the Daily cloud at 90. A break below it opens the way for a push to new lows below 88.

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Technical analysis on Gold for May 3, 2018

The Gold price is very close to making a bullish reversal. The Gold price is challenging the $1,300 support area. The bullish divergence signs imply that the bounce will come very soon. This is not the time to be bearish Gold. Gold price is expected to move towards $1,330-40 at least.

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Blue parallel lines - bearish channel

Blue upward sloping line - bullish divergence

Yellow rectangle - target

Violet lines - expected move

The Gold price is trading below the Ichimoku cloud inside a bearish channel. Short-term resistance is at $1,314. A break above this level will be the first sign of a reversal. Confirmation will come on a break above $1,326. Strong resistance will then be tested around $1,330. Support is at $1,300-$1,295. The bullish divergence signs in the RSI imply that we should bounce soon.

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Trading plan for 03/05/2018

After the Fed interest rate decision the currency market remains under pressure of strong US Dollar: EUR/USD made a new low at 1.1935, GBP/USD made a new low at 1.3550 as well, but the USD/JPY has traded lower at 109.55. Asian equities were mostly lower with Hang Seng leading losses (-1.66%). US 10-year yields flat at 2.966%. Gold up by 0.3% to $1,308.82 and WTI oil is down by 0.15% to $67.83.

On Thursday 3rd of May, the event calendar is quite busy in important data releases. The Eurozone will post CPI Flash Estimate and PPI, the UK will post PMI Services data, Canda will issue Trade Balance data and the US will post ISM Non-Manufacturing PMI data, Unemployment Claims data, Prelim Unit Labor Costs data and Prelim Nonfarm Productivity data. Moreover, there is a speech from SNB Chairman Thomas Jordan scheduled later on the day as well.

EUR/USD analysis for 03/05/2018:

The main event today is the Eurozone flash inflation for April. The global investors expect it to remain at the 1.3% level from March and we project core inflation will decline back to 0.9%, due to Easter base effects from 2017 becoming a drag on services prices. A temporary increase in headline inflation in coming months is likely because of energy price inflation, although the underlying price pressure remains subdued going forward.

Let's now take a look at the EUR/USD technical picture in the H4 time frame. The market has hit and bounced from the 61% Fibo retracements at the level of 1.1935. The key intraday technical resistance is seen at the level of 1.2000 and 1.2035 and only a sustained breakout above this level would confirm the bottom is in place. Please notice the market conditions are extremely oversold and several bullish divergences are present at various time frames, which indicate the corrective pull-back is near.

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Bitcoin analysis for 03/05/2018

Four of the largest carmakers in the world have launched a common Blockchain platform, seeking a change in transport, according to TechCrunch. In addition to BMW, GM, Ford and Renault, the Mobility Open Blockchain Initiative (MOBI) is the idea of over thirty participants, including Bosch, Hyperledger, IBM, and IOTA. "(members will focus on) using Blockchain and related technologies to make mobility safer, more environmentally friendly and more affordable." - informs the official website of the project. MOBI is the largest joint venture of its kind in the automotive industry. Until now, manufacturers have separately introduced private Blockchain services or joined existing initiatives, such as the Hyperledger service package. "By combining car manufacturers, suppliers, start-ups and government agencies, we can accelerate the implementation of the system to the benefit of companies, consumers, and the community," - said President and CEO of MOBI, Chris Ballinger.

It looks like the Blockchain technology will be fully implemented in this part of the economy for good. Some time ago other leading car manufacturers like Mercedes and Audi have introduced the usage of own tokens based on blockchain technology as well.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market bounced from the level of $8,800 and currently is hovering around the weekly pivot at the level of $9,126. The intraday trend line resistance is still acting well and only a sustained breakout above it would make the test of the local high at $9,800 possible. Otherwise, the price can go lower towards the level of $8,500 again. The impulsive scenario invalidation level is still seen at $8,355.

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