U.S. Dollar Trading (US) stock markets rebounded and commodities added to Tuesday’s gains even with weak US data. April Durable Goods fell -3.6% vs. +4.1% previously. The Dollar gave up most of the week’s gains except against the Yen. In US stocks, DJIA +36 points closing at 12394, S&P +4 points closing at 1320 and NASDAQ +20 points closing at 2746. Looking ahead, Weekly Jobless Claims are forecast at 400k vs. 409k previously. Q1 GDP forecast at 2.1% vs. 1.8% previously.
The Euro (EUR) did well to find support and reverse in Europe with the market ignoring rumors of snap Greek elections and extending the relief rally. June German GFK index disappointed at 5.5 vs. 5.6 previously. Overall the EUR/USD traded with a low of 1.4019 and a high of 1.4119 before closing the day around 1.4085 in the New York session. Looking ahead, ECB President Trichet Speaks.
The Japanese Yen (JPY) EUR/JPY and GBP/JPY led the market higher with the risk on trading in European and US session helping reverse recent losses. Tonight’s US jobs data is important for the uptrend to develop with a sub 400k print potentially leading to a break out. Overall the USD/JPY traded with a low of 81.78 and a high of 82.22 before closing the day around 81.95 in the New York session.
The Sterling (GBP) was the strongest currency in the market overnight surging across the board. EUR/GBP reversed below 0.8700 and GBP/JPY soared above Y133. Q1 GDP was confirmed at 0.5% Q/Q. Overall the GBP/USD traded with a low of 1.6129 and a high of 1.6297 before closing the day at 1.6260 in the New York session. Looking ahead,
The Australian Dollar (AUD) sentiment shifted in Europe but not before fresh multi month lows printed on a break below 1.0480 support. Strong commodity and the bounce in US stocks the main catalyst but concerns over Greece and China still persist and could derail relief rally attempts. Overall the AUD/USD traded with a low of 1.0439 and a high of 1.0562 before closing the day at 1.0530 in the New York session.
Oil & Gold (XAU) Consolidated the recent rally but failed to break above $ 1530 resistance. Overall trading with a low of USD$ 1521 and high of USD $ 1532 before ending the New York session at USD$ 1526 an ounce. Oil rallied above $ 100 with topside momentum increasing. WTI Oil Closed +$ 1.73 at $ 101.32 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro – 1.4155
Initial support at 1.4000 (Big Figure Support) followed by 1.3855 (Mar 15 low). Initial resistance is now located at 1.4200 (Big Figure Resistance) followed by 1.4346 (May 20 high)
Yen – 81.90
Initial support is located at 81.32 (May 23 low) followed by 80.00 (Big Level support). Initial resistance is now at 82.28 (April 28 low) followed by 82.79 (Apr 27 High).
Pound – 1.6310
Initial support at 1.6046 (50% retrace of 1.5345-1.6747) followed by 1.6000 (Big Level Support). Initial resistance is now at 1.6321 (38.2% retrace of 1.6747-1.6058) followed by 1.6380 (May 12 high).
Australian Dollar – 1.0585
Initial support at 1.0500 (Big Figure Support) followed by the 1.0443 (Apr 19 low). Initial resistance is now at 1.0657 (May 23 high) followed by 1.0717 (May 13 high).
Gold – 1528
Initial support at 1504 (May 23 low) followed by 1485 (May 18 low). Initial resistance is now at 1533 (61.8% retrace of 1577.57-1462.45) followed by 1543 (May 4 high).
Oil – 101.50
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