By GrowthAces.com

EUR/USD

• We expect the recent USD slide to continue though at a slower pace than in the past few sessions.
• We are pretty sure that the EUR/USD will rise in the medium term. However, there are some risks in the short term.Investors are unlikely to sell the USD aggressively next week given that the April jobs report is likely to show a  pickup in hiring, reversing the disappointing reading of last month. On the other hand we should expect some good macroeconomic releases from the Eurozone countries (industrial output data for Germany, France and Italy).
• In our opinion the EUR/USD is rather unlikely to break below the 1.1050 support level and getting long on dips above this level could be a good idea.

GBP

• The market will be focused on the parliamentary election set for May 7. Recent polls show the ruling Conservatives and the main opposition Labour Party neck-and-neck, making a hung parliament the most likely outcome. Prime Minister David Cameron’s Conservative Party has taken a one point lead over the opposition Labour Party, according to a YouGov poll. Conservative Party was one point ahead of the opposition Labour Party also in a poll carried out by Opinium. However, Britain’s opposition Labour Party has taken a 3 percentage point lead over Prime Minister David Cameron’s Conservatives, according to a Survation poll.
• The GBP has so far held up very well ahead of elections despite huge uncertainty around the outcome. British PMI services reading (Wednesday 8:30 GMT) should be important for the investors after much weaker PMI manufacturing data on Friday.
• Our GBP/USD long hit the stop-loss at 1.5170 on Friday. However, the outlook is still bullish and we will be looking to get long again.

AUD

• The Reserve Bank of Australia meeting is scheduled for Tuesday. The market expects a rate cut by 25 bps. In our opinion the RBA will keep rates unchanged which should give a strong boost to our long AUD/USD position. Let us remind that latest CPI figures were not as low as expected, which may have a strong impact on the rate decision.
• The AUD traders will be focused also on Australian jobs report, to be released on Thursday (1:30 GMT).

NZD

• The NZD/USD fell strongly after the RBNZ comments leaving the door open for a rate cut. In our opinion a rate cut is rather unlikely, but the RBNZ decision to keep rates unchanged is in favor of carry trades, which should support the NZD. New Zealand has the highest key rates among core markets and that is why the currency is attractive for investors when the global risk picture improves.
• We have opened NZD/USD long position at 0.7560.