The EUR/USD pair continues to gain traction above 1.1300, driven by a weakening US Dollar amid persistent trade uncertainties and investor anticipation ahead of the upcoming Federal Reserve policy meeting. While the Euro pushes higher, the GBP/USD pair remains in a sideways range. Meanwhile, NZD/USD is pressured by disappointing Chinese data, and USD/CAD holds a modest bullish tone, influenced by oil prices and recent US data, as traders await the Fed’s rate decision.
KEY HIGHLIGHTS
- Gold rises on geopolitical tensions and weaker US Dollar outlook.
- Silver climbs as Trump’s new tariffs boost safe-haven demand.
- WTI oil rebounds despite OPEC+ production hike supply concerns.
- Natural gas holds gains, eyes breakout above key resistance
EUR/USD: Renewed Upside Momentum Above 1.1300
Market Overview
The EUR/USD pair climbed toward the 1.1350 region during Tuesday’s European session, supported by sustained selling pressure on the US Dollar. The pair briefly tested the 1.1360 zone earlier in the week before retreating slightly.
- The US Dollar remains under pressure due to trade uncertainties and dovish expectations from the Fed.
- The Euro finds strength despite the ECB’s dovish tone following its recent 25 basis-point rate cut to 2.25%.
- Divergence between the Fed and ECB monetary policy remains a key theme.
- The US Dollar Index (DXY) is trading near the 100.00 mark.
Technical Overview
Moving Averages
Exponential:
- MA 10: 1.1327 – Positive Crossover – Bullish
- MA 20: 1.1272 – Positive Crossover – Bullish
- MA 50: 1.1055 – Positive Crossover – Bullish
Simple:
- MA 10: 1.1343 – Negative Crossover – Bearish
- MA 20: 1.1330 – Positive Crossover – Bullish
- MA 50: 1.1008 – Positive Crossover – Bullish
Indicators
- RSI: 58.30 – Buy Zone – Bullish
- Stochastic Oscillator: 15.55 – Sell Zone – Neutral
Resistance and Support Levels
- R1: 1.1530
- R2: 1.1718
- S1: 1.0923
- S2: 1.0735
Market Sentiment
- Overall Sentiment: Bullish
- Market Direction: Buy
Trade Suggestion
- Entry: Limit Buy at 1.1239
- Take Profit: 1.1437
- Stop Loss: 1.1117
GBP/USD: Sideways Movement Around 1.3300
Market Overview
GBP/USD is trading in a narrow range near the 1.3300 level. The Pound is slightly supported by USD weakness, but broader caution persists due to ongoing trade concerns and monetary policy uncertainty.
- Market focus remains on the Fed meeting and the upcoming BoE rate decision.
- The BoE is expected to cut rates by 25 basis points amid a slowing UK economy.
- The USD has softened despite positive economic data, with investors cautious ahead of Powell’s comments.
Technical Overview
Moving Averages
Exponential:
- MA 10: 1.3298 – Positive Crossover – Bullish
- MA 20: 1.3235 – Positive Crossover – Bullish
- MA 50: 1.3051 – Positive Crossover – Bullish
Simple:
- MA 10: 1.3322 – Positive Crossover – Bullish
- MA 20: 1.3248 – Positive Crossover – Bullish
- MA 50: 1.3029 – Positive Crossover – Bullish
Indicators
- RSI: 59.66 – Buy Zone – Bullish
- Stochastic Oscillator: 40.18 – Neutral Zone – Neutral
Resistance and Support Levels
- R1: 1.3439
- R2: 1.3613
- S1: 1.2878
- S2: 1.2704
Market Sentiment
- Overall Sentiment: Bullish
- Market Direction: Buy
Trade Suggestion
- Entry: Limit Buy at 1.3289
- Take Profit: 1.3380
- Stop Loss: 1.3241
NZD/USD: Under Pressure Amid Weak Chinese Data
Market Overview
NZD/USD trades lower around 0.5950 following disappointing Chinese PMI data, which raised concerns about weakening demand from New Zealand’s largest trading partner.
- China’s Caixin Services PMI dropped to 50.7 in April, below expectations.
- A soft New Zealand labor market report could increase the chances of further RBNZ rate cuts.
- The Fed is widely expected to hold rates steady, but Powell’s guidance will be key.
Technical Overview
Moving Averages
Exponential:
- MA 10: 0.5945 – Positive Crossover – Bullish
- MA 20: 0.5904 – Positive Crossover – Bullish
- MA 50: 0.5824 – Positive Crossover – Bullish
Simple:
- MA 10: 0.5953 – Positive Crossover – Bullish
- MA 20: 0.5914 – Positive Crossover – Bullish
- MA 50: 0.5786 – Positive Crossover – Bullish
Indicators
- RSI: 61.70 – Buy Zone – Bullish
- Stochastic Oscillator: 56.63 – Buy Zone – Neutral
Resistance and Support Levels
- R1: 0.6024
- R2: 0.6152
- S1: 0.5609
- S2: 0.5480
Market Sentiment
- Overall Sentiment: Bullish
- Market Direction: Buy
Trade Suggestion
- Entry: Limit Buy at 0.5971
- Take Profit: 0.6023
- Stop Loss: 0.5944
USD/CAD: Modest Gains Amid Oil Strength and Fed Uncertainty
Market Overview
USD/CAD remains capped below 1.3850 despite a slight rebound, with conflicting forces such as oil price strength and Fed caution limiting upside potential.
- Strong US ISM Services PMI data supports the USD.
- Crude oil recovery and Canadian trade optimism favor the CAD.
- Fed policy outlook remains a key short-term catalyst for USD direction.
Technical Overview
Moving Averages
Exponential:
- MA 10: 1.3838 – Negative Crossover – Bearish
- MA 20: 1.3903 – Negative Crossover – Bearish
- MA 50: 1.4055 – Negative Crossover – Bearish
Simple:
- MA 10: 1.3833 – Negative Crossover – Bearish
- MA 20: 1.3866 – Negative Crossover – Bearish
- MA 50: 1.4146 – Negative Crossover – Bearish
Indicators
- RSI: 36.69 – Sell Zone – Bearish
- Stochastic Oscillator: 30.99 – Sell Zone – Neutral
Resistance and Support Levels
- R1: 1.4238
- R2: 1.4390
- S1: 1.3745
- S2: 1.3593
Market Sentiment
- Overall Sentiment: Bearish
- Market Direction: Sell
Trade Suggestion
- Entry: Limit Sell at 1.3814
- Take Profit: 1.3784
- Stop Loss: 1.3838
Additional Currency Updates
- USD/CHF: Up 0.07% at 0.8228
- USD/JPY: Down 0.49% to 142.97
- EUR/GBP: Up 0.10% at 0.8511
- EUR/AUD: Up 0.43% at 1.7566
- AUD/NZD: Down 0.52% at 1.0784
- USD/CNY: Up 0.01% at 7.2706
- AUD/SEK: Down 0.47% at 6.2211
Key Economic Events Today
- Australia: Building Approvals (MoM) for April
- Forecast: -1.7%
- Previous: -0.2%
- Time: 07:00