May is coming to an end, and the U.S. dollar is once again on the rise just as we predicted. It will likely gain momentum with the release of Consumer Confidence data on Tuesday. Thursday will provide commodity traders with plenty of scalping opportunities as both natural gas and crude oil inventories are scheduled to be released on the same day due to the Memorial Day holiday. We expect precious metals to continue heading south.
The Australian dollar continued to give up ground to its U.S. rival in Monday’s morning session as data show traders are increasing their bearish bets on the Aussie. Last week, this pair came under heavy selling pressure on Thursday after data showed that manufacturing activity in China contracted for the first time in seven months in May. The fundamentals suggest further weakening is likely in the coming days. At the moment, we are aiming at 0.9585
Stop loss 0.9700
Take profit 0.9585
Crude oil has been stuck in a consolidation pattern for the last few days. We saw it fall from the highs of $95 a barrel to its current level of $93.60 following the disappointing economy data out of China. It is currently moving sideways. Many traders are expecting the market bears to reveal themselves after the American Memorial Day holiday. Tuesday could be a good day to enter short positions. We advised our traders to use caution as this commodity could spike again before continuing to fall.
Stop loss $94.50
Take profit $92.50
The Japanese Yen has been on the decline these past couple of days, as minutes from the Bank of Japan’s April meeting indicated some members of the central bank opposed the goal of 2% inflation within two years. Despite this resistance, the Bank of Japan is widely expected to continue with its quantitative easing program approved early in the month that will see the central bank double its Japanese government bond holdings. Let it be clear that we are still bullish, with a final goal set at 105.
Stop Loss 100.60
Take profit 102.00