07 May, 2024
5 minutes
Daily Technical Analysis May 07th 2024
1. AUD/USD Analysis:
News Summary:
Franklin Templeton's head of Australian fixed income said the threshold for the Reserve Bank of Australia to raise interest rates this week remains quite high despite recent unpleasant inflation results. However, the RBA will signal that it is not ruling anything out and acknowledges that there has been unexpected inflation recently. With the Fed saying interest rates are restrictive and opposing the idea of any further increases, the RBA could follow it.
Trend Analysis:
We can see the rising momentum of AUD/USD at H4 level has weakened, but it is still running above the 48 hours moving average. In addition, the MACD double line and energy column have formed top divergence and shrinkage above the zero axis.
Today's Key Price Levels:
Key Support Levels: [0.6500]
Key Resistance Levels: [0.6700]
Pivot Points [0.6650]
2. USD/JPY Analysis:
News Summary:
HSBC said the weak yen played a key role in reflating the economy, which the Bank of Japan hopes to achieve this year. After years of losing competitiveness, exporters are finally feeling the boost from currency adjustments. One might speculate that a weaker exchange rate may be needed and longer to turn this boost into a lasting manufacturing revival. A weaker yen is also boosting Japan's services sector through tourism, which in turn is increasing Inflation expectations.
Trend Analysis:
We can see USD/JPY fluctuated upward and was close to the 48 hours moving average on H4 chart. On the other hand, the MACD histogram bar and double line formed golden cross below the zero axis.
Today's Key Price Levels:
Key Support Levels: [152.50]
Key Resistance Levels: [156.30]
Pivot Points [153.00]