FOREX CHART ANALYSIS MAY 8 - STAY FOCUS
Today the market will welcome very important NFP data so the market may explode. Strong changes also took place yesterday. Check out our chart analysis for today and choose the suitable forex trading strategies.
- Last week's claim for unemployment benefits was significantly worse than expected, with the actual figure being 3,169,000 compared to 3,000,000.
- China's exports increased by 3.5% in April as a surprise, while it is expected to see a 15% drop. However, a more accurate reflection of the state of the Chinese economy is in imported data, namely -14.2% in April, which is more than expected.
- The pound strengthened after the Bank of England frustrated the 'dovish' side by delaying the increase in quantitative easing (QE) despite the new governor - Mr. Andrew Bailey pointed out that they might. so in the future.
- In the so-called "illustrative scenario" rather than a standard forecast, BoE said the UK economy could be down 25% in the 3 months to June and unemployment could more than double. to 9% of the workforce, the worst in 300 years.
On the USDJPY chart, it continues to be a disappointing sluggish although prices are still going as expected. Price is still creating a bearish signal when approaching the switch area 106.4. Therefore, we still maintain the previous decrease view but should not add a position. The next target remains around 105.
On the EURUSD chart, buy signals appeared yesterday. This is the price range that anyone trading ranging can take advantage of in the short term. If you have already entered the order, you can continue holding the long orders. We expect the price to penetrate the sensitive zone 1,088 and move to the upper border.
Price fluctuated relatively strongly yesterday. The bottom of 1.22 on the GBPUSD chart has not yet been fully reached but there has now been resistance from buyers. Those who have not yet escaped the command should be cautious. The next important price area is 1,250. If there is a noticeable bearish signal, you can sell short it again in this zone. At the current price, you should not.
The biggest change yesterday was on USDCAD chart. Price has broken through the sensitive 1.40 zone. Although not reaching the end of the buying side, the decline is very strong. The bearish engulfing set has also formed on the daily chart. We recommend you exit all buy orders and wait for price action in the zone of 1.385. Currently the possibility of it being broken is relatively high.
On the AUDUSD chart, prices also rebounded sharply yesterday and are now approaching the important 0.656 confluence zone. You should not enter the order at this time because the distance to the next resistance area is quite narrow. More time is needed to observe the next price action.