Trading signals - FOREX consolidates ahead of the first round of France elections

USD/JPY
The situation remains the same - geopolitical risks determine the demand for safe-haven assets. The pair is oversold and our view didn’t change much, we are waiting for a technical pullback from the level of 108.00-108.50.

• The start of the corporate reporting season in the US was not as positive as it was expected. Equity markets in the US remain rather under pressure.
• Current weakness of the US currency after US President's political statements is a short-term positive Japanese yen factor.

Technical analysis and recommendations: The market is oversold, longs at current levels may be interesting.
The level 108.70-108.50 now acts as the nearest support (the 200th moving average will support the the price). Despite attempts to push the market lower, we observe large-scale longs around 108.50 and below.

EUR/USD
The European currency gained amid USD weakness.

• Political risks continue to shape the agenda in Europe. The first round of elections in France that will take place this weekend is in the focus of investors.

Technical analysis and recommendations: Despite local growth, political risks are too high. Out of the market.
The pair found support in the area of ​​level 1.0708. The first resistance is in the region of 1.0770, the main resistance is above level 1.0830-1.0835.

Brent Oil
An unexpected drop below $54.60 led to the activation of stop orders and the market decline to the area of ​​$52.50. The oil decline occurred due to US equity markets sale-off in view of global risk aversion after disappointing corporate reporting data.

• Official data on oil reserves showed a decrease of 1 million barrels, distillate stocks - by 1.9 million barrels, gasoline stocks increased by 1.5 million barrels.
• Weakness of the American currency is a positive factor for the oil market.
• The meeting of OPEC representatives this weekend and possible verbal intervention will support the oil market.

Technical analysis and recommendations: Middle-term longs at current levels appear to be justified.
In the current conditions, the oil market will try to keep the level of 53 dollars per barrel and recover to the level of $54 dollars per barrel.

Fort Financial Services
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.