ATFX Market Update_Martin

ATFX Market Update - 2019.05.27

ATFX
Publish date: Mon, 27 May 2019, 10:56 AM

Personal opinions today:

The U.S. economy has been dragged down by rising tensions between China and the United States. Last week, U.S. durable goods orders fell negative 2.1 percent in April from a positive 2.6% the previous month. Any currencies against USD and Precious metal price rose. Dow limited gains last week.

The British prime minister steps down; the market is waiting for a new prime minister. British P.M. Theresa may have resigned as Britain's prime minister, giving her a chance to change the terms of the Brexit negotiations. Positive for British pound in short but not for long.

[Important financial data and events to watch]
US and UK markets are closed for a holiday
Precious metals, U.S. crude oil and FX market were closed early
09:30 annual profit of industrial enterprises above designated size in China in April
11:00 Bank of Japan governor speaks at the T20 summit 
13:00 Japan March leading indicator
22:00 Canada National economic confidence index

Today's suggestion:

EURUSD 
1.1185/1.1165 support
1.1220/1.1240 resistance
A drop in U.S. durable goods orders in April, coupled with earlier data showing a decline in U.S. manufacturing purchasing managers index and retail sales, pointed to a slowdown in the economy. The dollar fell, and the euro rebounded from its lows. Technical reference resistance of 1.1220 and 1.1240, if the market reflects ahead of time the expected drop in U.S. first-quarter real GDP revisions on Thursday, the dollar will continue to fall, bullish the euro. Of course, important data out of the eurozone and Germany in a few weeks should be noted. Support levels moved to 1.1185 and 1.1165. Short term is expected to maintain the 1.1200 level, look at the 1.1240 targets.

GBPUSD
1.2740/1.2755 resistance
1.2670/1.2655 support
The dollar fell on weak U.S. economic data. Besides, British prime minister Theresa May announced her resignation and remained in office until June 7. Progress on Brexit is expected to change, with the pound rebounding. Of course, the next prime minister is yet to be confirmed, and his successor will be crucial to Brexit policy. Technically, the important reference resistance level of the GBPUSD rose to 1.2755. If the resistance level did not break, the trend continues to go down, try 1.2655 support level.

AUDUSD
0.6940/0.6960 resistance
0.6905/0.6880 support
U.S. economic data disappointed, the dollar fell, indirectly bullish Australian dollar. The Australian dollar's rally widened to 0.69 percent after U.S. President Donald trump's bullish comments cooled a trade war between China and the United States following a stock market decline. Technically, there are still downside risks to the AUDUSD trend. The Australian dollar temporarily rose, the rise is expected to continue, on the test 0.6940 and 0.6960 resistance. If the US and China trade talks are confirmed in the short term, there will be reasons to support the continued rise of the Australian dollar. Almost, the New Zealand dollar has the same purpose of waiting for a rebound. Tomorrow morning, the Australian consumer confidence index is watching.

USDJPY 
109.70/109.90 resistance
109.35/109.15 support
The dollar fell against the yen after the Dow Jones industrial average fell after U.S. durable goods fell sharply in April. Fortunately, the US President made a speech to cool down the US and China trade war, which led to the rise of Dow index and Nikkei index and the recovery of the US dollar against the Japanese yen. Today, though, the US and UK holidays, failed to refer to the relevant stock market trends. But look to Asian stocks; The Nikkei, for example, looks for a dollar-yen road map.

USDCAD 
1.3480/1.3505 resistance
1.3405/1.3380 support
The Canadian dollar rose after crude lost $60 to $57. Technical trend, dollar resistance against the Canadian dollar at $1.3505, support at $1.3405. On Wednesday, Canada raised interest rates in anticipation of a rise in the Canadian dollar. Short term advice to keep an eye on crude oil prices, if crude oil prices continue to fall, the U.S. dollar against the Canadian dollar or break above 1.3505.

U.S. crude futures USOIL 
58.40/57.85 support
59.05/60.05 resistance
Crude oil prices fell last week as U.S. crude inventories for API and ElA rose. Besides, news that Russia and other non-OPEC members may oppose production cuts raises the prospect of an oversupply of crude oil, hurting prices. But the market temporarily digests the news, crude oil prices stopped rising. Technically, look for initial resistance at $60, with support below $58.40 and support at $57.85. Watch as U.S. API and ElA crude inventories are released on Wednesday. Note: USOIL future trading is closed early for the UK and US holidays.

XAUUSD 
1283/1280 support
1293/1296 resistance
The Dow Jones industrial average fell after U.S. economic data fell short of expectations and trade talks between China and the United States did not reopen soon. Moreover, the Fed has no interest rate hikes. A variety of factors have boosted gold prices. Technically, refer to the May 13 to 21 bounce. Support bits for 1283 and 1280 are tentative. Upward target resistance levels between 1293 and 1296. Note: precious metals trading is closed early for the UK and US holidays.

U.S. Dow Jones industrial average futures US30
25705/25855 resistance
25415/25355 support
U.S. holidays, no U.S. data, Dow futures closed early today. In this case, the Dow was little changed. Investors should pay attention to any related information US and China economic and trade, chase the trend of Dow futures. Current recommendations focus on the resistance at 25705 and 25855. Lower support bit targets 25415 and 25355.

BTCUSD:
8950 / 9250 resistance
8550 / 8300 support
Trade tension, investors are losing confidence in trading with traditional investments instruments. Moreover, Fed no intended to interest hike, the bitcoin demand increasing. Technically the bitcoin price breakthrough $8000 and reach $9000. Now, keeps watching the China and U.S. trade tension. If a positive outlook, bearish the price of Bitcoin. If contrary, the Bitcoin will continue the uptrend. 
 
Enjoy trading! The content is for reference only. Please do ensure that you understand the risk.

Information provided by AT Global Market, Chief Analyst of Asia Pacific: Martin Lam

Registered Australian Accountant/ Certified Professional Manager / Certified Financial Advisor Experienced Investor / Media Market Commentator Martin Lam has Over 17 years’ experience in global investment market. Familiar with the worldwide stock indices, precious metals such Gold and Silver, Crude oil and Forex. He operated Martin Currency Trading Company and had partnership with a number of well-known international financial corporations and institutions. Before he join ATFX, he was TeleTrade Greater China development and Sales Director. Mr. Lam attends Hong Kong Now TV and China CCTV finance channel once a week. He also had regularly invited by different media, such as DBC Digital Financial Channel, Hong Kong Economic Times, The Standard, Ming Pao to share his experience to trade in Forex, Precious metals, Crude oil and worldwide stock indices. 

Legal: AT Global Markets Limited (ATGM, registration number 24226 IBC 2017). ATGM is an International Business Company in Saint Vincent and the Grenadines. Registered address is : the Financial Services Centre, Stoney Ground, Kingstown, St.Vincent & the Grenadines.

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