{"id":169955,"date":"2020-05-04T10:59:48","date_gmt":"2020-05-04T14:59:48","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=169955"},"modified":"2020-05-04T10:53:15","modified_gmt":"2020-05-04T14:53:15","slug":"usd-and-gold-show-momentum-as-risk-off-sentiment-resumes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/usd-and-gold-show-momentum-as-risk-off-sentiment-resumes\/","title":{"rendered":"USD and Gold show momentum as risk-off sentiment resumes"},"content":{"rendered":"
May 4, 2020<\/div>
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By Jameel Ahmad, Global Head of Currency Strategy and Market Research at FXTM<\/strong><\/p>\n

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The pessimism that began to take over the mood of financial markets sentiment late last week has continued into the new trading week, with riskier assets suffering and safe havens preferred.<\/p>\n

World stock markets are lacking appetite, perhaps as investors question whether the rally in April can really be justified and this is taking fellow risk assets down with it. Emerging market currencies, and those currencies considered as \u2018risk\u2019 are the ones that are lower against the USD on Monday. This includes the GBPUSD, EURUSD and USDCAD.<\/p>\n

There is an old saying in the financial world around \u2018selling in May and going away\u2019 and should this sentiment continue into the month, the likes of Gold and the USD could be considered as \u2018winners\u2019 from this change in investor attitude.<\/p>\n

The GBPUSD has been the largest loser of the majors so far in May, erasing nearly 200 pips. Should the GBPUSD continue to drop\u00a0the following recent support levels can be looked upon as potential levels of interest; the April 29 low at 1.2387, the April 21\u00a0low at 1.2297 and the April 20 low at 1.2164.<\/p>\n

If each of these levels are breached then we are looking at an increased probability of the Pound falling below 1.20 against the USD for the first time since late March.<\/p>\n

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(GBPUSD Daily Timeframe FXTM MT4)<\/p>\n

The EURUSD is another example of a pair that has come under selling pressure from a renewed USD\u00a0environment. If the Eurodollar continues what could be the start of a new wave of lower prices, 1.0892, 1.0857 and 1.0809 are potential support levels for EURUSD on the Daily timeframe.<\/p>\n

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(EURUSD Daily Timeframe FXTM MT4)<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Jameel Ahmad, Global Head of Currency Strategy and Market Research at FXTM The pessimism that began to take over the mood of financial markets sentiment late last week has continued into the new trading week, with riskier assets suffering and safe havens preferred. World stock markets are lacking appetite, perhaps as investors question whether […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-169955","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=169955"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169955\/revisions"}],"predecessor-version":[{"id":169957,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/169955\/revisions\/169957"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=169955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=169955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=169955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}