David Long

Strong Economic Data in Retail Sector Overnight – Forex Trading News – May 22nd 2014

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The Poms are still at it, producing strong economic data in the retail sector overnight. A bit of movement around the FOMC as they diverge from Europe and Japanese quantitative easing policies. The Fed is still on target to reduce whilst the BOJ is still printing and likely to add more, whilst the ECB is also looking to start “printing” (they are not allowed to but are looking at some form of quantitative easing). Whilst not on the agenda yet but I suspect that the BOE is also looking at reducing soon. So, the US$ bounced around a bit overnight.

DATA HIGHLIGHTS TODAY – Manufacturing PMI’s from China, France, Germany, Europe & US. UK GDP. Canadian Retail sales. US Home sales.

AUDUSD – A low test bar LHLL but do not be fooled by it, we are going lower, the test is 92 cents. Momentum is almost over in the move but I do not see any rally heading our way.
Resistance: 9460/9522
Support: 9200/9085/8900

EURUSD – An engulfing test bar which has given us some divergence in RSI. Cant exactly buy into it yet but this might indicate a minor rally that we can sell into.
Resistance: 13890/14050/14260/14320
Support: 13700/13646/13565/13488

GBPUSD – A 2nd consecutive buyer bar so we can start to protect capital by trailing stops up now.
Resistance: 1.70/1.7060/1.7370
Support: 1.6820/1.66/1.63

NZDUSD – Also a test bar, a buyer bar today could see a potential entry tomorrow.
Resistance: 8745/8842
Support: 8523/8434/8090

USDCAD – HHHL in mid trend. Commodities saw a bounce overnight so this will continue to range and froth.
Resistance: 11170/11233
Support: 10802/10715

USDJPY – Tagged the 200ema nicely and closed on support. Again, a buyer bar HHHL today could see an entry tomorrow.
Resistance: 105.57/108.35/110.50
Support: 101.40/100.62/100/99.80

GOLD – Still uninteresting.
Resistance: 1427/1480
Support: 1,265/1,180/1,040

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