5/17 - Banks are closed for European nations observing Day of Ascension, a Catholic holiday that commemorates the rise of Jesus into heaven after being crucified. US banks however are open.

During the European session, there was certainly a continuing ascension of the safe haven currencies - USD and JPY as the market continues to unwind risk.

EUR/USD saw another corrective rally attempt before that stalled in the 5/17 Asian session, and then fell sharply again in the European session. Gearing up for the US session, the market is trading it at about 1.2680. The 1.2625 support is still in sight .

EUR/JPY broke down new lows and continues its March at least toward the 100 psychological level.

The sterling (GBP), which was resilient before the Bank of England inflation report during the 5/16 session, is now catching up to the slide against USD and JPY. GBP/USD broke into new lows trading near 1.5850 ahead of the US session. The 1.5780-1.58 area is full of support pivots and the 200-day SMA.

GBP/JPY also broke into new lows, 126.50-126.60 will be a support area to be tested in the US session.

Commodity currencies are also sliding sharply against our safe havens. USD/CAD had opened up 1.03 after a break above 1.0055. It is making new highs since the break, now trading around  1.0140 going into the US session. AUD/USD failed to push above the 5/16 high during the 5/16 Asian session, and fell to 0.9910 during the European session.

AUD/JPY continues to consolidate with resistance near 80.00 and support near 79.40. It basically fell from resistance to support during the 5/16 Asian-European session. Bearish continuation has room toward 77.00 handle and support pivot from Dec. 2011.

CAD/JPY has been consolidating, and fell to the consolidation low/support near 79.00. 78.00 is the next short-term target.

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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.