FOREX TRADING

USD/JPY failed to break above the May high and essentially range resistance at about 80.55. So no returning to 50% retracement at 81.78 for now, especially now that it has falling below 80.00 and even a trendline seen int he 4H chart during the 5/17 US trading session.

The EUR/GBP is not heading to the 0.77 level just yet. Holding above 0.7950, the market is now pushing above 0.80, and looking at the 0.8048 short-term resistance pivot. It should be noted that the 4H RSI reading is testing 60. It has been able to mostly stay below 60,

The EUR/USD broke into new lows for the week, coming down to the 1.2660 level at the beginning of the 5/17 US trading session. The 1.2625-1.2660 support area has been documented at FXTimes on the daily chart. On the 4H chart, we see that the market could be already developing

With continued downside weakness seen, the cross looks to hold on to its broken support and weaken further. In such a case, its key support standing at the 126.53 level will be targeted on further declines with a cut through here aiming at the 125.45 level followed by the 124.50

There were 370,000 seasonally adjusted initial claims for unemployment insurance in the US in the week ending May 12, unchanged from the previous week’s upwardly revised level (initially reported as 367,000). The four-week moving average of initial claims, which better controls for weekly volatility, declined to 375,000 from 379,750 the

USD continues to trade mostly firmer against the major currencies as risk sentiment remains negative. European equities are trading in the red after the ECB paused lending to some Greek banks until they recapitalize and US stock futures are marginally lower at time of writing. The dollar index is nearing

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

Cable has dropped further breaking below its Support at 1.5880. The 21-Week-MA Support is near current levels at 1.5813 and it needs to be seen whether it can hold or not. If it holds, we might see a bounce back move to 1.5900-30 in the coming sessions. On the other

Taking a general look at markets before the end of this week, we can see that the bearishness started to lose momentum as traders are speculating now what tools Central Banks might provide to revive the slowing pace of recovery, especially the European Central Bank amid the current political instability

The Canadian dollar has weakened to its lowest last seen in January after the European central bank indicated that it is going to reduce its lending to some banks in Greece to reduce its risk. Investors have taken this to mean that Greece might lose its position in euro zone

The big event of the morning was the Spanish bond auction, however it failed to generate anything more than an immediate ripple in the FX market. The auction raised just below the top of its target amount of EU2.5bn, at EU 2.49bn. Although demand was strong, Madrid had to pay

A very quiet session with most European participant observing Ascension Thursday Holiday. The highlight of the morning was the Spanish GDP figures and its 3-4 year Bond auctions which provided no surprises. The EUR/USD was little changed from its Far East opening levels of 1.2720. Concerns over Greece remain with

On Wednesday Dollar/Yen traded within narrow almost 40 pip range. The currency couple depreciated from 80.55 to 80.18 yesterday, not matching the negative money flow sentiment at under -11%, closing the day at 80.31. This morning the Dollar is trading quietly against the Yen, with movements within yesterday’s range for now.

The minor rebound above 1.2680 forms a consolidation pattern, preceding next leg downwards, for a tight test of 1.2624 low. Initial intraday resistance is projected at 1.2758 and major hurdle on the upside is the static one at 1.2815. My outlook is negative, for a slide towards 1.2630.

Continues near-term consolidation off 1.2681, yesterday’s low, with 1.2750 zone, Fib 23.6% of 1.2980/1.2681 downleg, capping for now. Near-term price action found footstep at 1.2700 zone and improving hourly studies, seeing potential for further corrective action, with break above yesterday’s high at 1.2757, required to resume higher and expose 1.2800