U.S. Dollar Trading (US) a largely non eventful day with many markets closed for holidays. Early Asia Tuesday we had reports of a sentiment shift from Germany in regards to helping Greece which saw a sharp spike higher in the EUR/USD. In US stocks, closed given Bank Holiday for Memorial Day. Looking ahead, May CB Consumer Confidence is forecast at 66.5 vs. 65.4.
The Euro (EUR) was under pressure initially on weekend reports of Greece not hitting budget cuts required to receive bailout money. This was reversed sharply on the German sentiment shift reports late in the day that Greece would receive support without restructuring. Overall the EUR/USD traded with a low of 1.4256 and a high of 1.4353 before closing the day around 1.4370 in the New York session. Looking ahead, German May Unemployment change forecast at -30k vs. -37k previously.
The Japanese Yen (JPY) holiday markets kept the major to a 20 pip range with most of action reserved for crosses with EUR/JPY rallying into the end of the day. The outlook for the USD/JPY is largely dependent on US monetary policy. Overall the USD/JPY traded with a low of 80.75 and a high of 81.05 before closing the day around 80.90 in the New York session. UPDATE April Industrial Production at 1% vs. -15.5% previously.
The Sterling (GBP) remained subdued but well supported near highs. The GBP/USD has broken above resistance in recent days and is threatening to begin an uptrend. Overall the GBP/USD traded with a low of 1.6448 and a high of 1.6510 before closing the day at 1.6480 in the New York session.
The Australian Dollar (AUD) consolidated near 1.0700 and is threatening to resume the uptrend with the correction seen over in stock markets. Concerns include China and Greece but if these fail to materialize then a retest of 1.1000 could be seen in coming weeks. Overall the AUD/USD traded with a low of 1.0673 and a high of 1.0730 before closing the day at 1.0700 in the New York session. UPDATE Q1 Current Account at -10.45bn vs. -8bn previously.
Oil & Gold (XAU) was quiet but edged higher towards $ 1540. Overall trading with a low of USD$ 1534 and high of USD $ 1539 before ending the New York session at USD$ 1538 an ounce. Tested and found support under $ 100 a barrel. WTI Oil Closed -$ 0.20 at $ 100.40 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro – 1.4390
Initial support at 1.4125 (May 27 low) followed by 1.4068 (May 26 low). Initial resistance is now located at 1.4423 (May 11 High) followed by 1.4455 (50% retrace of 1.4940-1.3970)
Yen – 80.90
Initial support is located at 80.64 (May 16 low) followed by 80.34 (May 13 low). Initial resistance is now at 82.00 (Big Figure resistance) followed by 82.23 (May 19 high).
Pound – 1.6540
Initial support at 1.6268 (May 26 low) followed by 1.6132 (May 25 low). Initial resistance is now at 1.6584 (76.4% retrace of 1.6747-1.6058) followed by 1.6661 (May 3 high).
Australian Dollar – 1.0745
Initial support at 1.0609 (May 27 low) followed by the 1.0510 (May 26 low). Initial resistance is now at 1.0794 (61.8% retrace of 1.1012-1.0441) followed by 1.0877 (76.4% retrace of 1.1012-1.0441).
Gold – 1537
Initial support at 1513 (May 24 low) followed by 1504 (May 23 low). Initial resistance is now at 1543 (May 4 high) followed by 1550 (76.4% retrace of 1577.57-1462.45).
Oil – 101.35
Initial support at 100.00 (Intraday Support) followed by 98.00 (Intraday Support). Initial resistance is now at 103.00 (Intraday resistance) followed by 105.00 (Intraday Resistance).
Written by Anthony Darvall