U.S. Dollar Trading (US) remained under pressure with rising stocks and easing European fears helping encourage most majors higher. USD/CHF hit all-time lows with the Swiss strengthening on a combination of relative safety and USD weakness. May UoM increased 1.9 points to 74.3. In US stocks, DJIA +38 points closing at 12441, S&P +5 points closing at 1331 and NASDAQ +13 points closing at 2796. Looking ahead, Bank Holiday for Memorial Day.
The Euro (EUR) was able to shrug off concerns that the Greece bailout will be revoked with Greece reportedly missing fiscal saving targets. Strong risk appetite is supporting the Euro but EUR/GBP and EUR/CHF selling suggest broad underperformance. Overall the EUR/USD traded with a low of 1.4184 and a high of 1.4325 before closing the day around 1.4310 in the New York session.
The Japanese Yen (JPY) fell below Y81 on Dollar weakness but was relatively unchanged on most of the crosses. April CPI was strong at 0.6% vs. -0.1% previously. US data is still very important for the major and is responsible for most of the direction. Overall the USD/JPY traded with a low of 80.70 and a high of 81.30 before closing the day around 80.90 in the New York session.
The Sterling (GBP) surged towards 1.6500 on the back of solid GBP/JPY buying and EUR/GBP selling. House Prices are under pressure still in the UK with October HPI falling -3.7%y/y. Overall the GBP/USD traded with a low of 1.6204 and a high of 1.6515 before closing the day at 1.6440 in the New York session. Looking ahead, Bank Holiday.
The Australian Dollar (AUD) did well tracking commodities higher to break above 1.0700 and well positioned to move higher after testing the downside for the past two weeks. AUD/NZD is a big mover to the downside with NZD/USD hitting 3 year highs on Friday. Overall the AUD/USD traded with a low of 1.0648 and a high of 1.0717 before closing the day at 1.0680 in the New York session.
Oil & Gold (XAU) broke above $1530 to hit multi week highs. Overall trading with a low of USD$1518 and high of USD $1537 before ending the New York session at USD$1535 an ounce. Was stable above $100 ending slightly higher. WTI Oil Closed +$0.36 at $100.60 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.4295
Initial support at 1.4125 (May 27 low) followed by 1.4068 (May 26 low). Initial resistance is now located at 1.4341 (38.2% retrace of 1.4940-1.3970) followed by 1.4423 (May 11 high)
Yen - 80.80
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 - 1.6480
Initial support at 1.6268 (May 26 low) followed by 1.6132 (May 25 low). Initial resistance is now at 1.6484 (61.8% retrace of 1.6747-1.6058) followed by 1.6517 (May 11 High).
Australian Dollar - 1.0700
Initial support at 1.0510 (May 26 low) followed by the 1.0441 (May 25 low). Initial resistance is now at 1.0717 (May 13 high) followed by 1.0794 (61.8% retrace of 1.1012-1.0441).
Gold - 1535
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 - 100.40
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