Morning Insights 21st May

Simon Alagbe

Analyst

Instrument: USDCAD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.39607 with take profit at 1.40056

Alternative scenario: Sell position is envisaged if price trades below 1.38970 with take profit at 1.38573

Fundamentals:

Flash manufacturing PMI (USD) 2:45 pm

Fed. Chair Powell speaks (USD)  7:30pm

Comment: Technically, this pair reached a 14 day low, forming a double bottom which led it to bounce upwards despite the risk sentiment on the COVID 19. It is envisaged that this pair will trade bullish for the earlier part of the day. 



Instrument: GBPUSD

Intraday: Bearish

Technical Analysis

Preference: Sell position is envisaged if price trades below 1.21816 with take profit at 1.21492

Alternative scenario: Buy position is envisaged if price trades above 1.22198 with take profit at 1.22358

Fundamentals:

Flash Manufacturing PMI (GBP) 9:30 am

Flash Services PMI (GBP) 9:30 am

Flash manufacturing PMI (USD) 2:45 pm

Fed. Chair Powell speaks (USD) 7:30pm.

Comment: The US gained quickly late last night as reports showed a global economic COVID recovery sentiment. It is stated that most investors are finally confident to see a recovery in the dollar; hence, a bearish move on this pair is envisaged. 

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