Forex Market News
The sell in May has not occurred with a bounce in stocks overnight. Interestingly the Ukrainian infighting increased overnight yet the market largely ignored this. The US posted a negative GDP figure for the first time in three years, which is not the end of the world, but could lead to funds flowing to higher assets such as the Kiwi, Aussie and then the emerging markets, in particular Mexico and the B.R.I.C.S. Other than that, the European holiday kept markets somewhat subdued.
DATA HIGHLIGHTS TODAY – Canadian GDP
AUDUSD – The Aussie rally was contributed to the bounce in the Yuan along with the forward spending contracts in the Cap-Ex number. Gives us a bullish engulfing bar to which I will stay well clear of.
EURUSD – Bearish LHLL and if short, stops should be tightened as momentum is overdone.
GBPUSD – Also a bearish bar and there is still some downside pressure left in this.
NZDUSD – Didn’t quite get to support but has broken triple bottom I mentioned yesterday http://www.bloomberg.com/news/2014-05-29/n-z-dollar-drop-seen-on-triple-bottom-break-technical-analysis.html so, a retest of this will see an opportunity for entry to go short as it moves lower.
USDCAD – Well, the US stumbled a bit, hasn’t fallen flat but the US$ weakness has seen this pair retest support levels.
USDJPY – A LHLL test bar and just frothing about with little clear indication of direction.