Daily Trading Analysis 01.05.2020

Trading Analysis USD/JPY

The government will meet with coronavirus experts on Friday to discuss a possible extension of the country's emergency situation. This was announced by Japanese Minister of Economy Yasutoshi Nishimura. 



Our Analysis:

Provided that the currency pair is traded above 107.00, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 107.11
  • Take Profit 1: 107.50
  • Take Profit 2: 107.80

Alternative scenario:

In case of breakdown of the level 107.00, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 107.00
  • Take Profit 1: 106.80
  • Take Profit 2: 106.50

Trading Analysis of AUD/USD 

The Australian AiG Performance of Manufacturing Index for April was reported at 35.8. Forex traders can compare this to the Australian AiG Performance of Manufacturing Index for March, which was reported at 53.7. The Australian PPI for the first-quarter increased by 0.2% quarterly and by 1.3% annualized. Forex traders can compare this to the Australian PPI for the fourth quarter, which increased by 0.3% quarterly and by 1.4% annualized.
The Final US Markit Manufacturing PMI for April is predicted at 36.9. Forex traders can compare this to the previous US Markit Manufacturing PMI for April, which was reported at 36.9. US Construction Spending for March is predicted to decrease by 3.5% monthly. Forex traders can compare this to US Construction Spending for February, which decreased by 1.3% monthly. The US ISM Manufacturing Index for April is predicted at 36.9. Forex traders can compare this to the US ISM Manufacturing Index for March, which was reported at 49.1. ISM Prices Paid for April are predicted at 35.0. Forex traders can compare this to ISM Prices Paid for March, which were reported at 37.4. ISM Employment for April is predicted at 37.0. Forex traders can compare this to ISM Employment for March, which was reported at 43.8.


Our Analysis:

Should price action for the AUD/USD remain inside the or breakout above the 0.6415 to 0.6500 zone the following trade set-up is recommended:
  • Timeframe: D1
  • Recommendation: Long Position
  • Entry Level: Long Position @ 0.6450
  • Take Profit Zone: 0.6935 – 0.7030
  • Stop Loss Level: 0.6380


Alternative scenario:

Should price action for the AUD/USD breakdown below 0.6415 the following trade set-up is recommended:
  • Timeframe: D1
  • Recommendation: Short Position
  • Entry Level: Short Position @ 0.6380
  • Take Profit Zone: 0.6115 – 0.6195
  • Stop Loss Level: 0.6415

Trading Analysis of GOLD/USD

Fed has left the interest rates unchanged and they will remain at this level for a while, which makes the precious metal cheaper. And in the future unprecedented monetary stimulus from ECB and Fed is likely to reduce demand for gold.


Our Analysis:

Provided that the price is below 1697.00, please follow these recommendations:
  • Time frame: 30 min
  • Recommendation: short position
  • Entry point: 1687.31
  • Take Profit 1: 1679.00
  • Take Profit 2: 1670.00


Alternative scenario:

In case of breakout of the level 1697.00 and the consolidation of the price above this level, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 1697.00
  • Take Profit 1: 1707.00
  • Take Profit 2: 1715.00

Risk Warning: Forex and CFD trading carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with CFD trading before deciding to trade. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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