Bulls at large

Gold broke the downward trend that started since mid-March 2015 when the annual low was pinned at 1,046.77. At present, the price of the precious metal found support around the psychological level of 1,060.31 dollars, but successfully broke the previous lows located around 1,100 dollars. The continuation of the movement conquered the nearest resistance at 1,252.31 dollars.

During today’s session bulls are at large and sent the pair to daily high at 1,271.70, while the low was marked at 1,2580.30. If closing above 1,268 we will witness reflections on 1,2712, 1,285, 1,298. Closing below 1,258 will drag the pair into the depths of 1,252, 1,248, 1242.

Yen weakens

The yen fell against the basket of major currencies as a result of the intention of the Japanese government to intervene in the foreign exchange market in case the yen strengthen. 

During the Asian session today the US dollar managed to advance to the level at 108,885 after previously had reached its lowest point for the past 18 months, falling to 105,546. 

This happened as a consequence of BoJ’s decision to keep the monetary policy unchanged which was posted at the last meeting of the bank at the end of April. 

Now, however, the comments of Japan’s finance minister Taro Aso weakened the yen, which in turn contributed to strengthening of USD/JPY. Currently the pair is trading at 109.10, as earlier peaked at 109.28. If the resistance at 109.30 could be conquered, the pair might push higher to 109.70. 

Disappointing jobs report dragged the US dollar

The US economy created 160,000 new jobs in April, according to the latest report of BLS.

These figures did’t meet the expectations for an increase of over 200,000 jobs outside agriculture. The unemployment rate remains unchanged at 5%.

One of the few good news is that average hourly earnings increased by 0.3% to $25.53, while on yearly base increased by 2.5%, compared with 2.3% in the previous year.

The release of NFP data dragged the US dollar with 40 pips down and EUR/USD pair climbed towards 1.1480. Next week will bring quite unsignificant macro data, which will support the upside movement of the pair.

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Sterling hovers around $1.45 after set of weak PMIs

Business activity in the services sector in the UK has deteriorated in April, posting uninspired start of the second quarter with hitting lowest levels since February 2013.

UK services PMI for April, according to latest Markit release, shows that the British economy is further slowing down, noting a drop to 52.3 points in April, down from 53.7 points in March amid the expected 53.5 points.

A weaker PMI underlines the additional weakness in economic growth, that indicates it will slow down in the short term.

So finally, within this week the three PMIs (construction, manufacturing and services) fell short of the expectations and thereby GBP is under selling pressure.

GBP/USD is currently trading around 1.45, as daily low was hit at 1.4444. If the pair continue to the downside, the pair most likely will break through the support located at 1.4360. On the upside a key resistance is located at 1.4670.

Twitter in downbeat mode

On Tuesday the shares of Twitter (TWTR) tumbled to worst ever bottom at $13.90 which is 46.5% below its IPO price since the company became public in 2013.

Briefly the shares of the social network were traded at $13.90, but later the price rose slightly to a closing price of $14.01.

Thus, the market capitalization of the company tumbled to $9.7 bln against $14 bln last week – ahead of the financial statements for the first quarter release.

Last week Twitter reported a slowdown in revenue growth. Especially frustrating for investors proved to be the slower growth in advertising revenue. During the first three months of the year, advertising revenues increased by 37% to $595 mln. An year earlier was reported an increase of 48%.

Since the beginning of the year the company's shares are down by 40%  and this is almost 50% below the IPO price of $26. In December 2013, just a month after its listing, Twitter recorded a  peak of $74.73.

But for now one thing is sure – investors fret over this downbeat mode.

AUD/USD down with 2.3%

The aussie fell against the major currencies after RBA’s decision to cut interest rates.

The currency was subjected to sales, falling to 0.7555 right after the news sails .

Last week the Australian dollar was under tension due to disappointing data on inflation.

This led to the most sharp daily spears for the past three years. 

The decision of the central bankers was somewhat expected by market partakers

after CPI fell by 0.2% in the first quarter of the year,

based on expectations of growth with the same figure.

Thereupon AUD/USD was softly creeping, along with bulls slowly retreating.

Planted in the daily lows, aussie’s weakness grows.

Around 0.7490 today the pair was hovering with 2.30% weakness showing.

The strong support at 0.7560 held the pair and until trading above it, will grow higher.

Bulls warning is flashing with 0.7640 level targeting.