The pair experienced range bound trading for the duration of April, trading between 1.1450 and 1.1215 as markets remained undecided on the direction to take. Bulls will be looking to capture 1.1400, which would imply that they are back in the driving seat, attracting more bulls and shaking out hopeful bears. Bears on the other hand will need to capture 1.1200 to do the same for the downside. Upside targets for the month are at 1.1400, 1.1550 and 1.1700. Downside targets for the week are at 1.1140, 1.1060 and 1.0900.
The cable experienced a massive surge in bullish power as it gained over 600 pips from the month’s lows. Bulls will look to capture 1.4670 as they look to extend their gain and capture a key resistance level which resulted in the last major slide in the pair. Upside targets are at 1.4850 and the all-important 1.5000 handle. Bears will look to defend these key areas as they try and find a way out of the current short squeeze, they will most likely throw everything in to defend 1.4600, with an eye on 1.4450, 1.4300 and 1.4150.
USDJP experience heavy swings both down and up during the month but could not capture last month close as the bears took advantage of the Daily 50 EMA, fibo and 112.00 resistance area, sending the pair more than 300 pips lower to retest the months lows. Bears will look to capture 107.65, making new yearly lows as they target 106.50, 105.50 and 104.50. Bulls would need to surpass 112.00 to have any chance of convincing markets that there is reason to enter long with targets at 113, 114 and 115.
Crude oil gained for the 3rd month in the row, posting more than 20% gains in April alone. Currently the commodity is testing the 23.6% Fibo of the decline begun in October. Bulls will be looking to capture 46 to shake off any lingering bears as they look to target 48.50, 50 and 52 USD per barrel. Bears will need to capture 43 if they have any hope of attracting more sellers and shaking out bulls as they look to take back some of the more than 70% they have lost this year alone.