EUR is going to consolidate until Thursday when it is expected ECB to make either a rate cut or to implement some new measures to support economic growth and to increase low inflation. This will put the EUR under extremely high downside pressure against all currencies. It is quite possible the downside move to be consumed day or two before the ECB meeting, because there are always leaks of information. It is good to know that every upside will be used to open SHORT positions at a better price. We have daily resistance at 1.3650, at 1.3685 and next one is at 1.3740. If we reach somewhere around you have to sell EUR. Upside can be restored if we have a daily close above 1.3820. Daily and H1 indicators show a recovery to the upside is going on right now, while H4 is mixed and shows range trade mode 1.3620-40.

GOLD bounced from the Weekly negative Ichimoku and is going to drop further, we have support zones somwhere around these levels 1215-1221-1232. Currently the metal is bearish on all time frames, there is no any light for the bulls, they are dead.

NZD has lost the 0.8500 again and is trading below the positive daily Ichimoku which may be considered as downside continuation. Target price will be 0.8350, but before that we have an intermediate support at 0.8415.

AUD also reversed upside move and is going to test the bottom of the H4 negative cloud, we have the RBA rate decision this week and that will determine the direction of the pair. I don't think we shall go below 0.9200 today. Support is 0.9175 and resistance is 0.9350, breaking of either will continue the move in the same direction after the RBA decision.

JPY again lost good positions against the dollar and now is trying to keep the price below the resistance of 102.20, seems that despite the tests of 101.50 the pair is still locked in range and will remain in this mode until the price goes above 102.50 or below 101.50.

GBP faced a strong resistance at 1.6780 and pullbacked to 1.6740. Failing to break above is increasing the downside pressure, which this week may transform into a powerful downside move. Weekly close below 1.6690 may start a new downside wave.

RUB is recording new highs, the first resistance comes at 35.05 and second stronger one is at 35.15. Support is at 34.80, as long as we are above the upside is more likely to continue. Any drop below 34.50 will reverse the bullish outlook. All indicators show upside continuation,however H4 shows bull are already getting tired.

For today:

SHORT EUR below 1.3645 SL 1.3655 TP 1.3605-1.3585-1.3555

LONG EUR above 1.3660 SL 1.3650 TP 1.3685-1.3705-1.3735-1.3755

SHORT GOLD below 1250 SL 1253 TP 1234-1224-1218

Good luck!

Views: 637

Tags: AUD, EUR, GBP, GOLD, JPY, NZD, RUB, USD

Comment by Khan Green on June 2, 2014 at 6:09am

Tnx dear. Would u identify the contours of the extent to which downfall could be expected?

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