Morning Insights 6th May

Simon Alagbe

Analyst

Instrument: AUDUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 0.64482 with take profit at 0.64715 

Alternative scenario: Sell position is envisaged if price trades below 0.64313 with take profit at 0.63998.

Fundamentals:

 ADP Non-Farm Employment Change (US) 1:15 pm

Comment: The Aussie is gaining ground as final Retail Sales figures for March were upgraded to a jump of 8.5% and so it is expected to test the nearest resistance after bouncing off a support this morning.



Instrument: USDCAD

Intraday: Bearish

Technical Analysis

Preference: Sell position is envisaged if price trades below 1.40062 with take profit at 1.39528

Alternative scenario: Buy position is envisaged if price trades above 1.40546 with take profit at 1.40852

Fundamentals:

 ADP Non-Farm Employment Change (USD) 1:15 pm 

 Crude Oil Inventories (OIL) 3:30 pm 

Comment: Heightened hopes of global energy demand recovering in the second half of the year amid easing coronavirus-related restrictions continue to fuel crude oil's rally on Tuesday. On the other hand, the selling pressure surrounding the major European currencies on Tuesday helped the greenback find demand and limited the USD/CAD pair's losses. Today, the ADP's private sector employment report and the Energy Information Administration's (EIA) Crude Oil Stocks Change data will be looked upon for fresh impetus.

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