05/12/2022 Daily Reports
Support Level: 1.0400 - 1.0290 - 1.0220 Resistance Level: 1.0600 - 1.0700- 1.0800
EUR/USD
- EUR/USD keeps the optimism well and sound and advances to new highs near 1.0550, an area last seen back in late June. It regained the upward potentials post payroll release and ended the week at around 1.0530, still bullish in the daily chart.
- EUR/USD trimmed all of its losses after the release of the Nonfarm Payrolls showed the US economy added 263K jobs during November, surpassing initial estimates for a gain of 200K jobs. In addition, the October reading was also revised up to 284K (from 261K).
- In the meantime, the European currency is expected to closely follow dollar dynamics, the impact of the energy crisis on the region and the Fed-ECB divergence. In addition, markets repricing of a potential pivot in the Fed’s policy remains the exclusive driver of the pair’s price action for the time being. Back to the euro area, the increasing speculation of a potential recession in the bloc emerges as an important domestic headwind facing the euro in the short-term horizon.
- The EUR/USD pair is trading near the 1.0530, up for the day with bullish stance in daily chart. The pair stabilized above 20 and 50 SMA, indicates bullish strength. Meanwhile, the 20 SMA continued accelerating north and developing above longer ones, suggests bulls not exhausted yet. On upside, the immediate resistance is 1.0600, break above this level will extend the advance to 1.0700.
- Technical readings in the daily chart support the bullish stances. The RSI indicators hovering above the midline and stabilized around 69. The Momentum indicator stabilized above the midline, indicating upward potentials. On downside, the immediate support is 1.0400 and below this level will open the gate to 1.0290.
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Support Level: 1.2130 - 1.2030 - 1.1900 Resistance Level: 1.2310 - 1.2410 - 1.2500
GBP/USD
- The GBP/USD dived from around 1.2290s close to 100 pips following a better-than-foreseen labor market report in the US, suggesting that further central bank tightening is needed. However, in the aftermath of the US employment report, the GBP/USD is trading around 1.2290s, recovered all the losses and ended the week near the top, still bullish in the daily chart.
- November US Nonfarm Payrolls rose by 263,000 following an upward revision of 284,000 jobs added in October, the Department of Labor (DoL) report showed. Delving into the information, the Unemployment Rate stood at 3.7%, while Average Hourly Earnings put upward pressure on inflation, jumping 5.1% YoY, vs. 4.6%, consensus. Given that Federal Reserve (Fed) policymakers agreed that moderating the pace of rate hikes is appropriate.
- Aside from this, a weaker Institute for Supply Management (ISM) Manufacturing PMI report for November on Thursday flashed signs of activity contraction, shifted sentiment sour, spurring flows towards safety, except for the US Dollar (USD). On the inflation side, the Fed’s preferred gauge for inflation, the core Personal Consumption Expenditure (PCE) for October, rose by 5% YoY, below the previous month’s 5.2%, aligned with estimates.
- The GBP/USD offers bullish stance in daily chart. Cable still stabilized above all main SMAs, indicating bullish strength in short term. Meanwhile, the 20 SMA continued accelerating north and developing above longer ones, suggests bulls not exhausted yet. On upside, The immediate resistance is 1.2310 with a break above it exposing to 1.2410.
- Technical readings in the daily chart support the bullish stances. RSI indicator stabilized around 67, while the Momentum indicator stabilized above the midline, suggesting upward potentials. On downside, the immediate support is 1.2130, unable to defend this level will resume the decline to 1.2030.
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Support Level: 1778 - 1760 - 1730 Resistance Level: 1805 - 1830 - 1857
XAU/USD
- Gold Price is set to close the week in positive territory despite Friday’s pullback. XAU/USD eyes a break above $1,800 as preserves its bullish bias.
- The US Dollar extended its decline to multi-month lows against most of its major rivals amid persistent optimism and tepid US data, supportive of the Federal Reserve’s monetary policy pivot.
- Amid these plays, the S&P 500 Futures drop 0.30% intraday to 4,070 whereas the US 10-year Treasury yields printed a corrective bounce off the 10-week low to 3.53% by the press time.
- Gold price stabilized around 1796, down for the day and bullish in the daily chart. The gold price still stabilized above all main SMAs, suggesting bullish strength. Meanwhile, the 20 SMA continued accelerating north and developing above 50 SMA, indicating bulls not exhausted yet. On upside, the immediate resistance is 1805, break above this level will open the gate to extend the advance to 1830 area.
- From a technical perspective, the RSI indicator hold above the midline and stabilized around 67, suggesting bullish strength. The Momentum indicator stabilized above the midline, suggests upward potentials. On downside, the immediate support is 1778, below this area may resume the decline to 1730.
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Support Level: 133.60 - 133.00 - 132.00 Resistance Level: 136.00 - 137.00 - 138.00
USD/JPY
- The USD/JPY jumped from 134.10 to 135.95, after the release of the US official employment report that showed better-than-expected numbers. The pair then pulled back toward 134.35 after the initial reaction, still bearish in the daily chart.
- Nonfarm Payrolls rose by 263K in November, the smallest since April 2021 but the number surpassed expectations and showed positive signs about the health of the labor market. The US Dollar jumped after the report, while equity prices tumbles and US Treasury yields soared. The economic figures mean a go-ahead for the Federal Reserve to keep raising rates in order to control inflation.
- The combination of a stronger US Dollar and higher US yields sent the Japanese Yen to the downside across the board. It is still among the top performers of the day, but off highs.
- The USD/JPY pair stabilized around 134.35, down for the day and bearish in the daily chart. The price still maintains the downward slope and develops below all main SMAs, suggests bearish strength in short term. Meanwhile, 20 SMA continued accelerating south and heading towards longer ones, indicating bears not exhausted. On upside, overcome 136.00 may encourage bulls to challenge 137.00, break above that level will open the gate to 138.00.
- Technical indicators suggest the bearish strength. RSI stabilized around 26, while the Momentum indicator continued developing below the midline, suggests downward potentials. On downside, the immediate support is 133.60, break below this level will open the gate to 133.00 area.
Support Level: 34160 - 33930 - 33600 Resistance Level: 34700 - 35000 - 35200
DJI
- DJI tumbled to intraday low 33935 post US Payroll data but recovered all the losses and ended Friday at around 34390, unchanged for the day and neutral in the hourly chart. The price stabilized between 20 and 50 SMA, suggests neutral strength. Meanwhile, 20 SMA started turning south but continued developing above 200 SMA, suggests bulls not exhausted yet. On upside, overcome 34700 may encourage bulls to challenge 35000, break above this level will open the gate to 35200.
- Technical indicators suggest the neutral strength. RSI stabilized around 51, while the Momentum indicator stabilized near the midline, suggests directionless potentials. On downside, the immediate support is 34160, break below this level will open the gate for more decline to 33930 area.
Support Level: 85.00 -83.60 - 80.70 Resistance Level: 87.50 - 89.30 - 91.00
BRENT
- Brent still under the sell pressure, dropped from intraday high 87.92 to intraday low 85.20 area. It recovered modestly and ended Friday at around 86.00, down for the day and bearish in the hourly chart. The price stabilized below 20 and 50 SMAs, suggests bearish strength in short term. Meanwhile, the 20 SMA continued accelerating south and developing below 50 SMA, indicating bearish bias. On upside, overcome 87.50 may encourage bulls to challenge 89.30, break above this level will open the gate to 91.00.
- Technical indicators suggest the bearish movement, hovering below the midline. RSI stabilized at around 42, while the Momentum indicator stabilized below the midline, suggests downward potentials. On downside, the immediate support is 85.00, break below this level will open the gate for more decline to 83.60 area.
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