Wednesday’s Technical Analysis on EUR/USD,GBP/USD,USD/JPY
FX77 | May 03, 2016 11:48PM ET
Atlanta Fed chief Dennis Lockhart and San Francisco’s John Williams both signaled on Tuesday that the U.S. economy could warrant a rate hike when the policy-setting Federal Open Market Committee gathers on June 14-15.They also said they would support raising rates in the next month, provided the economy stayed on track. It can be concluded that whether to increase the interest rate or not depends on more strong economic data and the global situation. However, we don’t see the good conditions for it in the current situation. Reserve Bank of Australia decided to lower the cash rate by 25 basis points to 1.75 per cent on May 3. Many countries now has declared to lower the interest rate, which means the global economic situation is deteriorating.
EUR/USD
According to MACD in the 240-minute Chart, the bullish momentum is still very strong. However, the correction has not finished yet. It is likely that after it reaches the 1.1463 support, it will rebound but can not break above the yesterday high point and then drop back again. Therefore, call options can be purchased first and put options later during the daytime session.(HK Time)
Support: 1.1463/1.1415 Resistance: 1.1568/1.1600
GBP/USD
As GBP/USD will continue to drop back according to the 60-minute Chart, we are put options buyers before it reaches the 1.4515 support. If it breaks below there and the break is valid, continue to purchase put options. It may rebound if it can get a short-term support at 1.4515.Pay attention to it. (HK Time)
Support: 1.4515/1.4500 Resistance: 1.4600/1.4652
USD/JPY
According to the 60-minute Chart, it is likely that MACD will break above the Zero Axis, which means the bullish trend continues. Therefore, we are mainly call options buyers. (HK Time)
Support: 105.50/103.60 Resistance: 107.50/108.00
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