Tuesday’s Technical Analysis on EUR/USD,GBP/USD,USD/JPY
FX77 | May 02, 2016 11:44PM ET
Mario Draghi, President of the ECB, said on Monday that “ Today, faced with a persistent output gap and too-low inflation, our monetary policy is stimulating the economy by steering market rates below their long-term levels.” And that “continued expansionary policies until excess slack in the economy has been reduced and inflation dynamics are sustainably consistent again with price stability. There is simply no alternative to this today.” Mario Draghi also indicated that the uncertainty of European future could hold back the economy across the continent. About the UK’s referendum on June 23, he couldn’t and was not willing to believe that UK would leave because staying in EU would make them stronger. But if UK indeed did so, it was certain that they would lose the benefit from the single market.
EUR/USD
According to the 60-minute Chart, EUR/USD has formed a continuous and rapid bullish trend. The rise may probably continue but it is also likely to drop back after a long rise. Therefore, we are mainly put options buyers at high levels during the daytime session. (HK Time)
Support: 1.1464/1.1450 Resistance: 1.1600/1.1800
GBP/USD
According to the 60-minute Chart, GBP/USD still remains a bullish trend. But similar to EUR, it is likely to drop back especially when the price arrives near the 1.4700 resistance. Therefore, put options can be purchased. (HK Time)
Support: 1.4600/1.4578 Resistance: 1.4700/1.4800
USD/JPY
USD/JPY continually fell down and even broke below the significant support of 106.30 last week. According to the 60-minute Chart, the bullish momentum is not strong and it is likely to further fall down to 105.50. Therefore, It is more appropriate to be bearish during the daytime session. (HK Time)
Support: 105.50/103.50 Resistance: 107.08/109.60
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