Trading plan for 01/05/2017:
The market activity remains sluggish as the exchanges in Singapore, Hong Kong, and China were on holiday, and only markets in Australia, New Zealand and Japan were open. In Europe, there is a bank holiday in Italy, Germany, France and Switzerland, so a lull trading conditions is expected as well.
On 1st May, the event calendar will be busy only during the US trading session with the ISM Manufacturing data and Personal Income and Personal Spending data on tap. The important report from Canada is the RBS Manufacturing PMI.
EUR/USD analysis for 01/05/2017:
The ISM Manufacturing PMI is scheduled for release at 02:00 pm GMT and the market participants are expecting a slight decrease from 57.2 to 56.6 points. Nevertheless, the index is still above the fifty level, that separates expansion from contraction, so expectations for future production, new orders, inventories, employment, and deliveries are still positive.
Let's now take a look at the EUR/USD technical picture on the H4 timeframe. The market is still trading around the recent swing high at the level of 1.0950 and the last week's gap between the levels of 1.0730 - 1.0820 is still not filled. Currently, the golden trend line provides the support around the level of 1.0854. If the level of 1.0820 is clearly violated, then the possibility of further rally downward will increase dramatically.
GBP/USD analysis for 01/05/2017:
Last week's upbeat economic data from the UK still plays a major role in shaping a positive sentiment in this market so the price is trading around the recent swing highs. As anticipated many times before, the technical support zone between the levels of 1.2705 - 1.27772 is playing a major role in this market and only a clear, impulsive breakout below this zone will change the bullish bias into bearish. The immediate support is seen at the level of 1.2905 and the next target for bulls will be found around 1.3000 after the level of 1.2963 is violated.
Market snapshot: Gold struggles with 61% Fibonacci resistance
Gold prices have rallied above the golden trend line and 61%Fibo retracement of the last swing down, but failed to break out towards the $1,300 level. Currently, the price is trading inside the gray support zone between the levels of $1,260 - $1,270 in oversold market conditions. A major move is expected later in the week when the NFP Payrolls data will be released.
