.jpeg)
Institutional Insights: Societe Generale FX & Gold Techs
EUR/USD: SUPPORT AT 1.1370 MAY LEAD TO FURTHER ASCENT
EUR/USD has defended the 50-DMA around 1.1065 (currently at 1.1330) and has broken out from a short-term channel, indicating a return of upward momentum. This is further supported by the daily MACD, which remains firmly within positive territory and has moved above its trigger line. The pair has established an interim high close to 1.1630. Maintaining the recent pivot low at 1.1370 will be vital for ongoing upward movement.
The next targets are set at projections of 1.1780 and 1.1885.
USD/JPY: 146/146.30 LIMITING THE RECOVERY
USD/JPY continues to face resistance around the 50-DMA and the descending trendline established since January, currently at 146/146.30. This underscores the sustained downward momentum in the pair. The recent pivot low at 142.30 serves as interim support, but there are no clear indications of a significant upside yet.
A break below 142.30 could intensify the corrective phase. The next downside targets include the December low at 140/139.50 and further projections toward 136.50.
AUD/USD: TARGETING 0.6630/0.6650
AUD/USD has steadily advanced after reclaiming the 50-day moving average (50-DMA) in April, consolidating within a tight range with resistance near 0.6545. The daily MACD remains in positive territory, indicating sustained upward momentum.
A strong defense of the moving average at 0.6400 could support the continuation of the upward trend. Breaking above 0.6545 may open the path to targets at 0.6630/0.6650, with further potential toward 0.6720.
EUR/CHF: RANGE-BOUND BETWEEN 0.9295-0.9445
- EUR/CHF recently formed a higher low at 0.9595, compared to April’s low near 0.9210. The 200-day moving average (DMA) has flattened, and the pair has exhibited fluctuating movements around it, indicating an absence of a clear trend. Currently, the pair remains confined within the range of 0.9295 to 0.9445. A decisive break beyond this range is essential to establish a directional trend.
- If the pair surpasses the resistance at 0.9445, the rebound could extend to targets around 0.9520 and potentially the March highs of 0.9630/0.9660.
USD/MXN: NEXT TARGETS AT 18.60/18.15
- USD/MXN has formed a rounding top pattern and broken below the lower boundary of its multi-month range, triggering a consistent decline. While a brief rebound is possible, the 50-day moving average (DMA) at 19.44/19.50 is likely to act as a resistance level.
- Failure to surpass the 19.44/19.50 zone could result in a continued downtrend. The next targets are positioned at 18.60, with an extended projection near 18.15.
USD/CNH: Resistance at 7.24/7.25 May Limit Upside Potential
USD/CNH has been on a steady decline since breaking below the 50-day moving average (currently at 7.24/7.25) in April. It has recently established a temporary low near 7.16. While there has been a brief pause in the decline, there are no clear indications of significant upside momentum. Failure to surpass the 7.24/7.25 resistance zone could lead to continued downward pressure.
If the pair drops below 7.16, the next targets may align with projections around 7.13, as well as the ascending trendline established since 2023, near 7.10/7.09.
GOLD: UPWARD TREND MAY TARGET $3500
Gold has broken above a short-term descending trend line, signaling a continuation of its upward movement. The recent pullback was limited to this trend line and the 50-day moving average (50-DMA), confirming sustained bullish momentum. It is now testing the recent pivot high of $3437, with no clear signs of a significant downside.
Holding support at the moving average of $3290 could maintain the upward trajectory. The next potential targets are $3500, followed by projections of $3575 to $3585.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!