Empty calendar, exciting opportunities: promising setups to watch
09 May 2023
Monday's macro calendar was empty, but we still saw some interesting moves on the market. Luckily, when the fundamentals are silent, we still have proper signals coming from the technical analysis. Today's calendar is also empty, which implies slightly lower volatility than usual.
I am of the opinion that instruments with the best trading opportunities include the EURGBP who is currently trading on the lowest levels of this year. Yesterday, the price managed to break the long-term horizontal support around 0.873 which was a bullish stronghold in 2023. Another promising setup can be spotted on the EURAUD, currently bouncing sharply off the key horizontal support at 1.62. This area is a strong Fibonacci support and traders are respecting it with great accuracy.
One more promising opportunity can be spotted on the USDCAD, bouncing off the lower line of the symmetric triangle pattern. Yesterday, the price created a hammer on the daily chart, which can be considered a proper signal to buy. Indices started Tuesday on the back foot, but the drop is rather low and looks like an innocent correction of the spectacular Friday rise so far. Mid-term sentiment on indices remains positive.
Short-term sentiment on oil is also positive. Yesterday, oil managed to create the third consecutive bullish candle. The upswing that was initiated on Thursday looks solid and can be considered a legitimate start of a bullish correction. Long-term sentiment remains negative, but it does not mean that we cannot get a bullish correction in the meantime.
Overnight, we received a few comments from the BoJ's Ueda. He stated that if the price target is met in a sustainable, stable manner, the BoJ will end the YCC and shrink the balance sheet. Thanks to these words, the Japanese Yen is currently the strongest currency in the pack. Let's see how long it lasts.