USD/CAD Daily Forecast – Test Of Support At 1.2200

USD/CAD Video 06.05.21.

U.S. Dollar Is Under Strong Pressure Against Canadian Dollar

USD/CAD is currently trying to settle below the support at 1.2200 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently testing the support at the 91 level. If the U.S. Dollar Index declines below this level, it will move towards the support at 90.70 which will be bearish for USD/CAD.

Today, U.S. reported that Initial Jobless Claims decreased from 590,000 (revised from 553,000) to 498,000 while Continuing Jobless Claims increased from 3.65 million (revised from 3.66 million) to 3.69 million.

Tomorrow, foreign exchange market traders will have a chance to take a look at additional employment data from U.S. and Canada. In the U.S., Non Farm Payrolls report is expected to show that U.S. economy added 978,000 jobs in April. Unemployment Rate report is projected to indicate that Unemployment Rate declined from 6% to 5.8%.

In Canada, Employment Change report is expected to show that Canadian economy lost 175,000 jobs in April. Unemployment Rate is expected to increase from 7.5% to 7.8%.

Technical Analysis

usd cad may 6 2021

USD to CAD managed to settle below the support at 1.2250 and gained strong downside momentum. Currently, USD to CAD is testing the next support level which is located at 1.2200. RSI moved into the oversold territory, but USD to CAD may gain additional downside momentum in case the right catalysts emerge.

If USD to CAD settles below the support at 1.2200, it will move towards the next support level at 1.2170. A successful test of the support at 1.2170 will open the way to the test of the support at 1.2130.

On the upside, USD to CAD needs to stay above 1.2200 to have a chance to develop upside momentum in the near term. The next resistance level for USD to CAD is located at 1.2250.

If USD to CAD gets above this level, it will move towards the resistance at 1.2280. A move above this level will open the way to the test of the resistance at 1.2310.

For a look at all of today’s economic events, check out our economic calendar.

Why Shares Of Moderna Are Down By 5% Today?

Moderna Video 06.05.21.

Moderna Stock Moves Lower As Q1 Revenue Misses Estimates

Shares of Moderna found themselves under pressure after the company released its first-quarter results.

Moderna reported revenue of $1.94 billion and earnings of $2.84 per share, beating analyst estimates on earnings and missing them on revenue. It looks that the market was not ready to tolerate the revenue miss, and it weighed heavily on Moderna stock.

The bar was set high for the company whose shares were up by more than 60% year-to-date before the release of the quarterly report. In addition, shares of  vaccine makers found themselves under pressure after U.S. signaled that it would support a waiver for vaccine IP rights at the WTO.

EU has already stated that it was ready to discuss waving COVID-19 vaccines patents, which is a worrisome development for investors. At the same time, it remains to be seen whether any decisions will be made in the near term.

What’s Next For Moderna?

The sell-off in Moderna shares was triggered by IP waiver-related fears and a revenue miss. IP waiver-related fears probably served as the main catalyst for the current sell-off as other vaccine makers like BioNTech and Pfizer also found themselves under pressure.

Currently, analysts expect that Moderna will report earnings of $23.27 per share in 2021 and $16.58 per share in 2022 so the stock is trading at about 9 forward P/E for 2022 which is very cheap in today’s market environment.

However, there is a lot of uncertainty regarding future profits, and recent discussions about waiving IP rights add another layer of uncertainty. At the same time, it looks increasingly likely that at least some part of the vaccine revenue will be recurring as people may need regular shots to protect themselves against COVID-19.

In this light, Moderna shares may soon attract speculative traders and investors who will want to use the current pullback as an opportunity to buy the stock at lower levels.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Resistance At $27.50 In Sight

Silver Video 06.05.21.

Weak Dollar Provides Support To Silver

Silver gained upside momentum and managed to get above the resistance at $27.00 while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the resistance at the 20 EMA at 91.30 and is testing the support at the 91 level. In case the U.S. Dollar Index declines below this level, it will move towards the support at 90.70 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold is currently testing the resistance at the $1800 level. In case gold manages to settle above this level, it will head towards the resistance at $1820 which will be bullish for silver.

Gold/silver ratio managed to get below the 67 level and is trying to settle below 66.50. If gold/silver ratio declines below this level, it will move towards the 66 level which will be bullish for silver.

Technical Analysis

silver may 6 2021

Silver managed to get above the resistance at $27.00 and is trying to gain additional upside momentum. If silver settles above this level, it will move towards the resistance at $27.50. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A successful test of the resistance at $27.50 will push silver towards the next resistance level at $27.75. If silver gets above the resistance at $27.75, it will head towards the next resistance which is located at $28.30.

On the support side, a move below the $27 level will push silver towards the support at $26.65. In case silver declines below this level, it will head towards the support at $26.30.

A successful test of the support at $26.30 will push silver towards the support which is located at the 20 EMA at $26.15. In case silver manages to settle below this level, it will head towards the next support at the 50 EMA at $25.95.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Mixed After Better-Than-Expected Initial Jobless Claims Report

Stocks Lack Direction As Traders Wait For New Catalysts

S&P 500 futures are swinging between gains and losses in premarket trading as traders remain cautious while the market is trading near record highs.

The market faced some selling pressure at the beginning of May, but it should be noted that the recent attempt to move lower was quickly bought. Traders seem to be a bit worried about higher inflation which may force the Fed to raise rates sooner than expected, but such worries are not strong. The bond market stays calm, and the yield of 10-year Treasuries has recently failed to settle above the 20 EMA at 1.60%.

At this point, it looks that the market will need additional catalysts to gain momentum and move away from current levels.

Initial Jobless Claims Decline To 498,000

The U.S. has just released Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims report indicated that 498,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would total 540,000.

Continuing Jobless Claims increased from 3.65 million (revised from 3.66 million) to 3.69 million compared to analyst consensus of 3.62 million.

Yesterday, ADP Employment Change report indicated that private businesses hired 742,000 workers compared to analyst consensus of 800,000. The employment picture will not be complete without Non Farm Payrolls and Unemployment Rate reports which will be published tomorrow. Non Farm Payrolls report is expected to show that the economy added 978,000 jobs in April. Unemployment Rate is projected to decline from 6% to 5.8%.

Oil Moves Lower As India Reports Record Number Of COVID-19 Cases

Yesterday, India reported more than 412,000 of new coronavirus cases, putting pressure on the oil market. While oil traders have mostly ignored negative developments in India, the country’s problems may ultimately have a notable impact on demand for oil.

Meanwhile, the recent EIA Weekly Petroleum Status Report indicated that crude inventories declined by 8 million barrels compared to analyst consensus which called for a decline of 2.35 million barrels. The U.S. domestic production remained unchanged at 10.9 million barrels per day (bpd) which was bullish for oil.

The recent data suggests that oil demand is picking up, so oil will have good chances to continue its upside move when the situation in India shows signs of stabilization.

For a look at all of today’s economic events, check out our economic calendar.

Dogecoin Pulls Back After Strong Rally

Dogecoin Video 06.05.21.

Dogecoin Tests Support At $0.60

Dogecoin lost momentum and made an attempt to settle below the support at $0.60 as traders took some profits after the recent rally.

Dogecoin quickly managed to get from $0.30 to $0.69 in less than two weeks as traders’ interest in the cryptocurrency increased and exchanges started to make it available for trading.

Cryptocurrencies remain very speculative in nature and often experience significant pullbacks so it’s not surprising to see that Dogecoin is moving lower after a strong rally.

Leading cryptocurrencies like Bitcoin and Ethereum have also lost momentum today so the downside move appears to be broad-based although XRP is moving higher.

Technical Analysis

dogecoin may 6 2021

Dogecoin faced resistance at $0.6650 and pulled back closer to the support at $0.60. RSI has pulled back a bit from recent highs, but it remains in the overbought territory.

In case Dogecoin manages to settle below the support at $0.60, it will head towards the next support level which has emerged at $0.5750. A successful test of the support at $0.5750 will open the way to the test of the support at $0.5350. If Dogecoin declines below this level, it will head towards the support at $0.45. There are no important levels between $0.45 and $0.5350 so this move may be fast.

On the upside, Dogecoin needs to settle above the resistance at $0.6650 to have a chance to develop upside momentum in the near term. The next resistance level is located near the recent highs at $0.70. If Dogecoin manages to settle above this level, it will gain additional upside momentum and head to new highs.

At this point, today’s trading action looks like a normal pullback after the major upside move. However, cryptocurrencies are very dependent on momentum so Dogecoin needs to quickly get closer to recent highs to continue its upside move. If Dogecoin fails to get more upside momentum in the next few days, the risks of a significant pullback will increase.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Test Of Resistance At 1.2020

EUR/USD Video 06.05.21.

Euro Tries To Gain More Ground Against U.S. Dollar

EUR/USD is currently trying to get back above the resistance at the 20 EMA at 1.2020 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index did not manage to settle above the resistance at the 20 EMA at 91.30 but stays close to this level. The nearest support level for the U.S. Dollar Index is located at the 91 level. If the U.S. Dollar Index gets to the test of this level, EUR/USD will get more support.

Today, foreign exchange market traders will have a chance to take a look at Euro Area Retail Sales data for March. Analysts expect that Retail Sales increased by 1.5% month-over-month in March after growing by 3% in February. On a year-over-year basis, Retail Sales are projected to increase by 9.6% as Retail Sales were under significant pressure in March 2020.

Meanwhile, the U.S. will release Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims are expected to decline from 553,000 to 540,000 while Continuing Jobless Claims are projected to decrease from 3.66 million to 3.62 million.

Yesterday’s ADP Employment Change report was a bit worse than the analyst consensus but it still highlighted rapid employment growth, and the upcoming employment reports are also expected to show that the situation in the job market continues to improve.

Technical Analysis

eur usd may 6 2021

EUR/USD is testing the resistance at the 20 EMA at 1.2020. In case this test is successful, EUR/USD will move towards the next resistance level at 1.2040.

A move above the resistance at 1.2040 will push EUR/USD towards the next resistance at 1.2060. In case EUR/USD manages to settle above this level, it will head towards the resistance which is located at 1.2090.

On the support side, the nearest support level for EUR/USD is located at the 50 EMA at 1.1990. This support level has been tested several times in recent trading sessions and proved its strength.

In case EUR/USD declines below the support at 1.1990, it will move towards the next support level at 1.1965. A successful test of the support at 1.1965 will push EUR/USD towards the support at 1.1925.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – Resistance At 1.3900 Remains A Major Obstacle On The Way Up

GBP/USD Video 06.05.21.

British Pound Is Mostly Flat Against U.S. Dollar

GBP/USD continues to test the resistance at 1.3900 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index remains near the resistance at the 20 EMA at 91.30. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at the 50 EMA at 91.45 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the Bank of England Interest Rate Decision. The rate is projected to stay unchanged at 0.1% so traders will pay attention to the Bank’s commentary.

Traders will also have a chance to take a look at the final reading of UK Services PMI report for April. Analysts expect that Services PMI increased from 56.3 in March to 60.1 in April.

In the U.S., traders will focus on Initial Jobless Claims and Continuing Jobless Claims reports. Initial Jobless Claims report is projected to show that 540,000 Americans filed for unemployment benefits in a week. Continuing Jobless Claims are projected to decline from 3.66 million to 3.62 million.

Technical Analysis

gbp usd may 6 2021

GBP/USD continues its attempts to settle above the resistance at 1.3900. If GBP/USD manages to settle above this level, it will get to another test of the resistance at 1.3920.

A successful test of the resistance at 1.3920 will push GBP/USD towards the next resistance at 1.3950. If GBP/USD settles above this level, it will head towards the resistance at 1.3980. A move above this level will open the way to the test of the resistance at 1.4000.

On the support side, the nearest support level for GBP/USD is located at the 20 EMA at 1.3875. If GBP/USD manages to settle below the support at the 20 EMA, it will move towards the 50 EMA at 1.3850. A successful test of this level will push GBP/USD towards the support at 1.3800. No significant levels were formed between 1.3800 and the 50 EMA so this move may be fast.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Move Higher As Traders Shrug Off Inflation Worries

Stocks Set To Open Higher After Yesterday’s Sell-Off

S&P 500 futures are moving higher in premarket trading as traders look ready to buy stocks after yesterday’s pullback.

Yesterday’s sell-off in the tech space was caused by comments of Treasury Secretary Janet Yellen which stated that interest rates may have to move higher to ensure that the economy did not overheat. These comments put immediate pressure on the tech-heavy Nasdaq which finished the day down by almost 2%.

Yellen later added that she was not predicting or recommending the move, and it looks that this was sufficient enough to calm traders. Interestingly, the bond market did not show a strong reaction. Currently, the yield of 10-year Treasuries is trying to settle above the 20 EMA at 1.61% which served as resistance for several trading sessions.

ADP Employment Change Report Misses Analyst Consensus

The U.S. has just released ADP Employment Change report for April. The report indicated that private businesses hired 742,000 workers compared to analyst consensus of 800,000.

Later, traders will take a look at the final reading of Services PMI report for April. Analysts expect that Services PMI increased from 60.4 in March to 63.1 in April as the economy continue to rebound at a robust pace.

WTI Oil Tests The $66 Level As Rally Continues

WTI oil is currently trying to settle above the $66 level as traders continue to bet on the strong recovery of oil demand. Yesterday, API Crude Oil Stock Change report indicated that crude inventories declined by 7.7 million barrels compared to analyst consensus which called for a decline of 2.19 million barrels.

Today, the market’s focus will shift to EIA Weekly Petroleum Status Report which usually has a bigger impact on the market compared to API Crude Oil Stock Change report. If EIA numbers confirm that crude inventories declined at a robust pace, the oil market may get additional support.

For a look at all of today’s economic events, check out our economic calendar.

Dogecoin Sets New Records As Rally Continues

Dogecoin Video 05.05.21.

Dogecoin Tries To Settle Above $0.70

Dogecoin continued to rally and made an attempt to get to the test of the $0.70 level as traders bet that adoption of this cryptocurrency will continue to grow.

On May 3, eToro stated that it would add Dogecoin to cryptocurrencies that were traded on its exchange. EToro stated that the decision was made to due client demand.

On May 4, Bitfinex made Dogecoin pairs (DOGE/USD and DOGE/USDt) available for margin trading, which allows traders to borrow funds in order to increase their leverage and potential profits.

These moves provided significant support to Dogecoin as traders bet that increased adoption of the cryptocurrency will further boost its market cap. At this point, Dogecoin ranks fourth by market capitalization behind Bitcoin, Ethereum and Binance Coin.

Technical Analysis

dogecoin may 5 2021

Dogecoin managed to settle above previous highs at $0.60 and made an attempt to get to the test of the $0.70 level. RSI has moved into the extremely overbought territory so the risks of a pullback are increasing.

At the same time, it should be noted that RSI remains far below extreme levels that were reached back in mid-April so Dogecoin maintains solid chances to gain additional upside momentum.

The recent upside move was very fast so there are big gaps between levels. The nearest support level for Dogecoin is located at the previous highs at $0.60. In case Dogecoin settles below this level, it will move towards the next support at $0.5350. A successful test of this support level will open the way to the test of the major support level at $0.45.

On the upside, Dogecoin needs to settle above $0.70 to continue its upside move. A move above this level will likely attract more speculative traders which will be bullish for Dogecoin. I’d note that traders should keep in mind that Dogecoin is set to be very volatile in the upcoming trading sessions.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Test Of Support At 1.1990

EUR/USD Video 05.05.21.

Euro Is Under Pressure

EUR/USD is currently testing the support at 1.1990 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get above the 20 EMA at 91.35 and is moving towards the 50 EMA at 91.50. In case the U.S. Dollar Index manages to settle above the 50 EMA, EUR/USD will find itself under more pressure.

Today, foreign exchange market traders will have a chance to take a look at the final readings of Services PMI reports from EU and U.S. Euro Area Services PMI is projected to increase from 49.6 in March to 50.3 in April. Numbers above 50 show expansion, so Euro Area services segment is expected to return to growth. In the U.S., Services PMI is projected to grow from 60.4 to 63.1.

U.S. ADP Employment Change report may also have an impact on the dynamics of the U.S. dollar. Analysts expect that the report will indicate that U.S. businesses hired 800,000 workers in April.

Technical Analysis

eur usd may 5 2021

EUR/USD managed to settle below the support at the 20 EMA at 1.2020 and is testing the next support level which is located near the 50 EMA at 1.1990. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If EUR/USD settles below the 50 EMA, it will head towards the next support level which is located at 1.1965. A successful test of the support at 1.1965 will push EUR/USD towards the next support at 1.1925. In case EUR/USD declines below this level, it will move towards the support at 1.1900.

On the upside, the previous support at the 20 EMA at 1.2020 will serve as the first resistance level for EUR/USD. If EUR/USD settles above this level, it will head towards the next resistance at 1.2040. A move above the resistance at 1.2040 will open the way to the test of the next resistance level which is located at 1.2060.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Tries To Gain More Ground Against U.S. Dollar

GBP/USD Video 05.05.21.

Another Test Of Resistance At 1.3900

GBP/USD is currently testing the resistance at 1.3900 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance at the 20 EMA at 91.35. This resistance level has already been tested many times and proved its strength. In case the U.S. Dollar Index manages to get above this level, it will move towards the 50 EMA at 91.50 which will be bearish for GBP/USD.

Today, foreign exchange market traders will focus on the economic data from the U.S. ADP Employment Change report is projected to show that private businesses created 800,000 jobs in April. The final reading of Services PMI report for April is projected to show that Services PMI increased from 60.4 in March to 63.1 in April.

Traders will also keep an eye on the developments in U.S. government bond markets after yesterday’s Yellen comments about inflation which put significant pressure on tech stocks. Bond markets managed to stay calm, and the yield of 10-year Treasuries remains below the 20 EMA at 1.61%. If Treasury yields start to move higher on inflation fears, U.S. dollar may get more support.

Technical Analysis

gbp usd may 5 2021

GBP/USD continues its attempts to settle above the resistance at 1.3900. If GBP/USD manages to settle above this level, it will move towards the resistance at 1.3920.

A move above the resistance at 1.3920 will open the way to the test of the resistance at 1.3950. In case GBP/USD manages to settle above this level, it will head towards the next resistance at 1.3980. A successful test of this level will open the way to the test of the resistance at 1.4000.

On the support side, the nearest support level for GBP/USD is located at the 20 EMA at 1.3870. If GBP/USD declines below the 20 EMA, it will move towards the support at the 50 EMA at 1.3845. A move below this level will push GBP/USD towards the support at 1.3800.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Canadian Dollar Moves Lower As Demand For Riskier Currencies Declines

USD/CAD Video 04.05.21.

U.S. Dollar Gains Ground Against Canadian Dollar

USD/CAD is trying to settle above the resistance at 1.2310 while the U.S. Dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index is currently testing the resistance at the 20 EMA at 91.35. This resistance level has already been tested several times in recent trading sessions and proved its strength. In case the U.S. Dollar Index gets above this level, it will move towards the resistance at 91.50 which will be bullish for USD/CAD.

Today, the U.S. reported that Factory Orders increased by 1.1% month-over-month in March after declining by 0.5% in February (revised from -0.8%). Analysts expected that Factory Orders would increase by 1.3%.

Meanwhile, Canada reported that Building Permits grew by 5.7% month-over-month in March compared to analyst consensus which called for growth of 2%.

The reports had limited impact on USD/CAD as foreign exchange market traders focused on general market sentiment. Safe haven assets like U.S. dollar and U.S. Treasuries were in demand today while riskier currencies found themselves under pressure.

Technical Analysis

usd cad may 4 2021

USD to CAD failed to settle below the support at 1.2280 and is trying to settle above the resistance level at 1.2310. USD to CAD has already managed to test the next resistance at 1.2350 but lost momentum and pulled back closer to 1.2310.

If USD to CAD manages to stay above 1.2310, it will have a chance to get to another test of the resistance at 1.2350. A move above this level will push USD to CAD towards the next resistance which is located at 1.2365.

In case USD to CAD gets above the resistance at 1.2365, it will head towards the resistance at 1.2385. A successful test of this level will open the way to the test of the resistance at 1.2400.

On the support side, a move below 1.2310 will push USD to CAD back towards the support at 1.2280. If USD to CAD settles below this level, it will gain additional downside momentum and head towards the next support at 1.2250.

For a look at all of today’s economic events, check out our economic calendar.

Why Shares Of Thomson Reuters Are Up By 3% Today?

Thomson Reuters Video 04.05.21.

Thomson Reuters Stock Tests New Highs After Strong Q1 2021 Report

Shares of Thomson Reuters gained strong upside momentum and moved to record highs after the company released its first-quarter report.

Thomson Reuters reported revenues of $1.58 billion and adjusted earnings of $0.58 per share, beating analyst estimates on both earnings and revenue. The company stated that its consumers were more confident about the economic recovery which boosted sales.

The company’s main business segments continued to perform well while Global Print remained under pressure. Thomson Reuters expects that Global Print’s revenues will decline by 4% – 7% in 2021 due to the negative impact of the coronavirus pandemic.

In the second quarter, Thomson Reuters expects to report revenue growth of 5.5% – 6.5% which will be driven by the strong performance of the “Big 3” segments (Legal Professionals, Corporates, Tax & Accounting Professionals). For the full year 2021, revenue is projected to grow by 3.5% – 4.0%, up from the previous guidance of 3.0% – 4.0%.

What’s Next For Thomson Reuters?

The rapid economic rebound will remain the key driver for Thomson Reuters’ revenue growth in 2021. In addition, the company has recently decided to move Reuters News to the subscription model which may serve as the source of growth in the future although it remains to be seen whether any tangible results will be visible in 2021.

The stock is currently trading at more than 40 forward P/E for 2022. While many stocks are trading at rich valuation in the current market environment, such valuation typically depends on fast growth which is not the case for Thomson Reuters.

At the same time, the market believes in the growth story as the stock is showing strong performance after the quarterly report while the S&P 500 is under significant pressure. If the market sees more room for growth, especially for the subscription-based Reuters News, Thomson Reuters shares will have a good chance to settle above the $100 level.

For a look at all of today’s economic events, check out our economic calendar.

Silver Price Daily Forecast – Test Of Resistance At $27.00

Silver Video 04.05.21.

Silver Gains Ground Despite Stronger Dollar

Silver managed to settle above the resistance at $26.65 and is testing the next resistance level at $27.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle above the resistance level which is located at the 20 EMA at 91.35. In case the U.S. Dollar Index manages to settle above this level, it will move towards the resistance at 91.50 which will be bearish for silver and gold price today.

At the same time, it should be noted that Treasury yields have started to move lower which is bullish for precious metals. This positive catalyst may offset the negative impact of stronger dollar during today’s trading session.

Gold is currently trying to get to the test of the resistance at the $1800 level. A move above this level will push gold towards $1820 which will be bullish for silver and other precious metals.

Gold/silver ratio managed to settle below the support at the 67 level and continues its downside move. The next material support level for gold/silver ratio is located at the 66 level. If gold/silver ratio gets to the test of this level, gold/silver ratio will get more support.

Technical Analysis

silver may 4 2021

Silver settled above the resistance at $26.65 and is trying to get above the next resistance level at $27.00. In case this attempt is successful, silver will head towards the next resistance which is located at $27.50.

A move above the resistance at $27.50 will push silver towards the next resistance level at $27.75. If silver manages to settle above this level, it will head towards the next resistance which is located at $28.30.

On the support side, the previous resistance at $26.65 will serve as the first support level for silver. If silver declines below this level, it will move towards the next support at $26.30. A move below the support at $26.30 will push silver towards the support at the 50 EMA at $25.90.

For a look at all of today’s economic events, check out our economic calendar.

Stocks Set To Open Lower As Traders Continue To Take Profits Near Record Highs

Stocks Move Lower As Traders Wait For Additional Upside Catalysts

S&P 500 futures are losing ground in premarket trading as traders remain cautious at a time when the stock market trades near record levels.

Yesterday, U.S. provided the final reading of Manufacturing PMI report for April which indicated that Manufacturing PMI increased from 59.1 to 60.5 compared to analyst consensus of 60.6. While the report was a bit worse than analyst expectations, it highlighted the strong growth of the U.S. manufacturing segment.

Today, traders will have a chance to take a look at Factory Orders data for March. Analysts expect that Factory Orders increased by 1.3% month-over-month after declining by 0.8% in February. It remains to be seen whether additional economic data will have a material impact on stocks as traders look increasingly focused on valuations as the market remains close to record levels.

WTI Oil Tries To Settle Above The $65 Level

WTI oil managed to get above the $65 level and made an attempt to get to the test of the $66 level as traders remained optimistic about the speed of oil demand recovery despite current problems with coronavirus in India.

Oil traders continue to bet that problems in India will remain an isolated case, and that the driving season will be strong, boosting demand for oil.

API Crude Oil Stock Change report, which is set to be published today, is expected to show that crude inventories declined by 2.19 million barrels. In case crude inventory draw is bigger than expected, oil may get additional support.

U.S. Dollar Rebounds, Putting Some Pressure On Precious Metals

The U.S. Dollar Index managed to settle back above the 91 level and is currently testing the resistance at the 20 EMA at 91.35. It looks that there is some demand for safe haven assets today, which is bullish for the American currency.

Stronger dollar puts pressure on gold and silver which are losing ground despite falling Treasury yields. Shares of miners enjoyed strong support during yesterday’s trading session, but they look ready for a pullback today.

For a look at all of today’s economic events, check out our economic calendar.

AUD/USD Daily Forecast – Australian Dollar Moves Lower After RBA Interest Rate Decision

AUD/USD Video 04.05.21.

U.S. Dollar Gains Ground Against Australian Dollar

AUD/USD has recently made an attempt to settle below the support at the 50 EMA at 0.7710 while the U.S. dollar gained ground against a broad basket of currencies.

The U.S. Dollar Index has recently tested the resistance at the 20 EMA at 91.30 but failed to develop sufficient upside momentum and pulled back. In case the U.S. Dollar Index gets above the 20 EMA, it will move towards 91.50 which will be bearish for AUD/USD.

Today, foreign exchange market traders focused on RBA Interest Rate Decision. RBA decided to leave the rate unchanged at 0.1%, in line with the analyst consensus.

RBA noted that the economic recovery in Australia was stronger than expected. RBA also added that the number of people with a job exceeded pre-pandemic level.

RBA revised its central scenario for GDP growth and now expects that Australia’s GDP will grow by 4.75% in 2021 and 3.5% in 2022. Interestingly, RBA believes that inflation will remain modest despite strong employment and GDP growth.

Importantly, RBA reiterated that it was not considering a change of a 0.1% yield target for 3-year government bonds. As a result, low yields will continue to serve as a bearish catalyst for the Australian dollar.

Technical Analysis

aud usd may 4 2021

AUD/USD declined below the support at the 20 EMA at 0.7730 and made an attempt to settle below the support at the 50 EMA at 0.7710. If AUD/USD gets below the 50 EMA, it will test the next support level at 0.7700.

A successful test of the support at 0.7700 will open the way to the test of the support at 0.7665. If AUD/USD declines below this level, it will head towards the support at 0.7635.

On the upside, the 20 EMA will serve as the first resistance level for AUD/USD. A move above the 20 EMA will push AUD/USD towards the resistance at 0.7750. In case AUD/USD settles above this level, it will head towards the next resistance at 0.7775. A successful test of this level will open the way to the test of the resistance at 0.7800.

For a look at all of today’s economic events, check out our economic calendar.

EUR/USD Daily Forecast – Euro Is Under Strong Pressure Against U.S. Dollar 

EUR/USD Video 04.05.21.

U.S. Dollar Gains Ground Against Euro

EUR/USD is currently testing the support at the 20 EMA at 1.2025 while the U.S. dollar is moving higher against a broad basket of currencies.

The U.S. Dollar Index has settled back above the 91 level and is testing the resistance at the 20 EMA at 91.30. In case this test is successful, the U.S. Dollar Index will gain additional upside momentum and head towards the resistance at 91.50 which will be bearish for EUR/USD.

Yesterday, EU reported that Euro Area Manufacturing PMI increased from 62.5 in March to 62.9 in April compared to analyst consensus of 63.3. U.S. Manufacturing PMI report was also a bit worse than expected as U.S. Manufacturing PMI increased from 59.1 to 60.5 compared to analyst consensus of 60.6. While the reports did not meet analyst expectations, they highlighted the strength of the rebound in the manufacturing segment.

There are no important economic reports scheduled to be released in the EU today so foreign exchange market traders will focus on the dynamics of U.S. government bond markets. Treasury yields have started to rebound after yesterday’s pullback, and the continuation of this rebound may provide additional support to the American currency.

Technical Analysis

eur usd may 4 2021

EUR/USD faced strong resistance at 1.2060 and pulled back. Currently, EUR/USD is trying to settle below the 20 EMA at 1.2025. If this attempt is successful, EUR/USD will move towards the support at 1.1990.

A successful test of the support at 1.1990 will open the way to the test of the next support level at 1.1965. In case EUR/USD declines below the support at 1.1965, it will head towards the next support at 1.1925.

On the upside, EUR/USD needs to settle back above the 20 EMA to have a chance to develop upside momentum in the near term. The next resistance level is located at 1.2040.

If EUR/USD settles above the resistance at 1.2040, it will head towards the resistance at 1.2060. A move above this level will open the way to the test of the resistance at 1.2090.

For a look at all of today’s economic events, check out our economic calendar.

GBP/USD Daily Forecast – British Pound Pulls Back After Yesterday’s Upside Move

GBP/USD Video 04.05.21.

British Pound Is Losing Ground Against U.S. Dollar

GBP/USD is currently trying to get to the test of the 20 EMA at 1.3870 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get back above the 91 level and is heading towards the resistance at the 20 EMA at 91.30. If the U.S. Dollar Index manages to settle above the 20 EMA, it will gain upside momentum and head towards the next resistance at 91.50 which will be bearish for GBP/USD.

Yesterday, U.S. reported that Manufacturing PMI increased from 59.1 in March to 60.5 in April compared to analyst consensus of 60.6. Construction Spending grew by 0.2% month-over-month in March while analysts expected that it would grow by 1.9%.

Today, foreign exchange market traders will have a chance to take a look at the final reading of UK Manufacturing PMI report for April. Analysts expect that UK Manufacturing PMI increased from 58.9 in March to 60.7 in April.

Technical Analysis

gbp usd may 4 2021

GBP/USD faced resistance at 1.3900 and pulled back. Currently, GBP/USD is trying to get to the test of the nearest support level which is located at the 20 EMA at 1.3870.

If GBP/USD manages to settle below the support at 1.3870, it will head towards the next support at the 50 EMA at 1.3845. In case GBP/USD declines below the 50 EMA, it will move towards the support level at 1.3800. This support level has been tested several times during recent trading sessions and proved its strength.

On the upside, GBP/USD needs to settle above the resistance at 1.3900 to have a chance to continue its rebound. If GBP/USD gets above this level, it will head towards the next resistance at 1.3920.

A successful test of the resistance at 1.3920 will open the way to the test of the next resistance at 1.3950. If GBP/USD settles above this level, it will head towards the resistance at 1.3980.

From a big picture point of view, GBP/USD remains range-bound, and it will likely need additional catalysts to gain momentum.

For a look at all of today’s economic events, check out our economic calendar.

USD/CAD Daily Forecast – Test Of Support At 1.2280

USD/CAD Video 03.05.21.

Canadian Dollar Gains Ground Against U.S. Dollar

USD/CAD is currently testing the support at 1.2280 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index gained downside momentum and is trying to settle below the support at the 91 level. If the U.S. Dollar Index manages to settle below this level, it will head towards the support at 90.70 which will be bearish for USD/CAD.

Today, the U.S. reported that Manufacturing PMI increased from 59.1 in March to 60.5 in April compared to analyst consensus of 60.6. Construction Spending report indicated that Construction Spending grew by 0.2% month-over-month in March after declining by 0.6% in February (revised from -0.8%). Analysts expected that Construction Spending would grow by 1.9%.

Meanwhile, Canada reported that Manufacturing PMI declined from 58.5 in March to 57.2 in April compared to analyst forecast of 56.

Foreign exchange market traders will also keep an eye on the latest developments in commodity markets which remain in a bullish mode. WTI oil is currently trying to settle above the $64 level while copper is trading close to multi-year highs which is bullish for commodity-related currencies like Canadian dollar. If commodity markets continue to move higher, USD/CAD may find itself under more pressure.

Technical Analysis

usd cad may 3 2021

USD to CAD failed to settle above the resistance at 1.2310 and is currently testing the support level at 1.2280. In case this test is successful, USD to CAD will head towards the next support at 1.2250.

A move below the support at 1.2250 will push USD to CAD towards the next support level which is located at 1.2220. In case USD to CAD declines below this level, it will move towards the next support at 1.2170.

On the upside, USD to CAD needs to settle above the resistance at 1.2310 to have a chance to develop upside momentum in the near term. If USD to CAD settles above this level, it will head towards the resistance at 1.2350. A move above the resistance at 1.2350 will push USD to CAD towards the resistance at 1.2365.

For a look at all of today’s economic events, check out our economic calendar.

Why Shares Of UPS Are Up By 4% Today?

UPS Video 03.05.21.

UPS Stock Continues To Move Higher After Strong Quarterly Report

Shares of UPS gained strong upside momentum after the company provided its quarterly earnings report on April 27. The company reported revenue of $22.9 billion and GAAP earnings of $5.47 per share, easily beating analyst estimates on both earnings and revenue.

The company did not provide revenue or earnings guidance for 2021 due to continued economic uncertainty, but the quarterly report indicated that the company was enjoying strong support from the continued shift to e-commerce. According to the report, shipment volumes increased by 14.3% year-over-year, which is a major development for a company of this size.

Not surprisingly, analysts rushed to update their price targets after the release of the strong quarterly report, and the stock continued to move higher. UPS stock closed near the $175 level before the release of the quarterly report, and it is currently trying to settle above $212.

What’s Next For UPS?

Analyst estimates have been updated after the strong report, and the current consensus implies that UPS will report earnings of $10.91 per share in 2021 and $11.35 per share in 2022. In this light, the stock is trading at less than 20 forward P/E for 2022 despite the recent rally.

S&P 500 is trading at record highs, and valuations look stretched in many market segments, so UPS shares have a decent chance to attract more buyers at current levels thanks to the company’s strong market position and recent growth.

It remains to be seen whether UPS will be able to grow its revenue at a fast pace once the initial boost from the pandemic is over.

At this point, traders look ready to be that current trends will stay in place in many segments. Analysts are more skeptical and expect that UPS earnings will increase by just 4% in 2022 compared to expected earnings in 2021, but estimates may change quickly if the upcoming reports show that shipments continue to grow at a robust pace.

For a look at all of today’s economic events, check out our economic calendar.