Today's Major Headlines 

After DXY broke the key 102 barrier,  we have seen EUR shorts starting to gather some momentum.

As we already know, May is one of the hottest months of the year for the Dollar. Therefore, the next stop for DXY is 103 even handle, which we saw tested earlier today with a clear path to 104+ should we see a break and close above 102.8.

There are opportunities with EUR shorts, hence why our main focus will be revoolving around  EUR/USD or EUR/JPY. 

EUR/USD will provide technical setups for shorts on pull backs, which works on both technical and fundamental levels. It is also important to note that EUR longs are currently still overcrowded.

EURJPY could be the mover if we see a miss on fp and US10Y drops, sending  money flowing into JPY. With EUR shorts still a preferred market to sell, the confirmation will be a break and close below the ascending counter trend line as per the image below.

With data being light today, we can expect the market to sit tight until unemployment claims form the US tomorrow, accompanied by NFP on Friday.

Gold sold off yesterday, but comes into some key demand area $1980. Although we see price has broken the counter trend line, there is strong demand at $1980 propping price up. Reward would be better here trading for price to appreciate, however, we now wait to see whether buyers will come into the market. That being said, NFP could be the catalyst here.

This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. INFINOX is not authorised to provide investment advice. No opinion given in the material constitutes a recommendation by INFINOX or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

All trading carries risk.