Morning Insights 17th May

Simon Alagbe

Analyst


Instrument: EURUSD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 1.21532 with take profit at 1.21621.

Bearish Preference: Sell position is envisaged if price trades below  1.21228 with take profit at  21121.

Fundamentals:   

None with high impact.

Comment: The recent rally in EUR/USD appears to have stalled ahead of the February high (1.2243) as it gives back the advance following the US Non-Farm Payrolls (NFP) report, and data prints coming out of the world’s largest economy may continue to sway the exchange rate as it slips to a fresh weekly low (1.2072) following the update to the Consumer Price Index (CPI).



Instrument: OILs

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 69.08 with a take profit at price 69.43.

Bearish Preference: Sell position is envisaged if price trades below price 68.19 with a take profit at price 67.87.

Fundamentals:

No major fundamental.

Comment: Crude oil prices were muted during the Asia-Pacific mid-day session after surging 2.6% on Friday. Investors were concerned about a recent wave of Covid-19 outbreaks in the Asia-Pacific region, which may overshadow a brighter energy demand outlook in the US, Europe and China. Viral resurgence may slow down the pace of economic recovery in the region as many Asian countries have made relatively slow progress on vaccination.

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