David Long

Jump in Unemployment Rate – Forex Trading News – May 7th 2014

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Forex Market News

The kiwi fell 0.5% as Wheeler mentions intervention followed by a jump in the unemployment rate. The greenback weakened somewhat and the yen maintained strength over its 2 day holiday thanks to continued bullcrap from Ukraine. The Ukrainians want elections, the Russians don’t and the US is obviously backing the locals. Stocks were off a little and commodities mixed.

The Cable gets even more bullish on services data, but our resident trader from Ol’ Blighty suggests this is limited with much mess to come from Scotland’s vote for independence and a general election next weekend which seems too close to call on who wins.

The Euro surprised to the upside with a spike, as data was mixed overnight I see this as more of running with the crowd and the selloff in the US$ rather than fundamental bullish Europeans.

Tomorrow is a big day for data and news so be on your toes with protecting capital and profit.

DATA HIGHLIGHTS TODAY – AUD Retail Sales. BOJ Minutes. Canadian Building Permits. US Aunty Janet testifies.

AUDUSD – Despite a shrinking trade balance and a neutral RBA the Aussie ran higher in a strong bar and has room in momentum to test recent highs and or 95¢.
Resistance: 9460/9522
Support: 9270/9085/8900

EURUSD – Finally got through 1.39 but came up against resistance of March highs. ECB tomorrow night and I will be looking to short this.
Resistance: 13890/14050/14260/14320
Support: 13700/13646/13565/13488

GBPUSD – Came within a bee’s…whisker, or 4pips of nice round number and previous resistance level of 1.70. As with Euro, is overcooked and the BOE is tomorrow. I do not see Carney slowing the currency, yet. With elections looming he isn’t about to move rates or intervene.
Resistance: 1.70/1.7060/1.7370
Support: 1.6820/1.66/1.63

NZDUSD – Wheeler, playing the game, the mere mention of intervention gives the desired result of a sell off. Got to 8778, which isn’t bad, and only 64pips from this century’s high!
Resistance: 8745/8842
Support: 8523/8434/8090

USDCAD – Testing recent lows and bottom of the range. They were under the mark on the data last night but I am still seeing the Loonie stronger as they turn the corner.
Resistance: 11170/11233
Support: 10953/10859/10715

USDJPY – Safe haven flows still affecting the Yen. Whilst I expect weakening today (ie a rally), it won’t be sustained as Ukraine continues to disrupt things.
Resistance: 105.57/108.35/110.50
Support: 101.40/100.62/100/99.80

GOLD – Ranging sideways. Despite the geo-political tension the bulls are not that strong, just strong enough to keep the sellers at bay.
Resistance: 1427/1480
Support: 1,265/1,180/1,040

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