David Long

Tight Ranges Continue – Forex Trading News – May 2nd 2014

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Forex Market News

A quiet session yesterday and overnight with the highlight being a weaker greenback. The weakness came despite Aunty Janet tapering $10B off her monthly spending bill. What caused the weaker US$ was GDP missing the mark as did manufacturing PMI. The tight ranges will continue today too with NFP out tonight. So take it easy and sharpen the focus for next week.

One thing to be aware of is the seasonal selling in stocks in May, the saying “sell in May, go away” will come soon. Stocks are looking top heavy so I expect a decent correction in May and June.

DATA HIGHLIGHTS TODAY – AU PPI. UK Construction PMI. US Non-Farm Payrolls.

AUDUSD – A HHHL as it attempts to pivot off the minor support. Was a seller bar though. Again, fundamentally I am not seeing this higher and with NFP out will stay away for the day.
Resistance: 9460/9522
Support: 9270/9085/8900

EURUSD – Tried to punch higher and failed. Is still in that tight range of 100pips
Resistance: 13890/14050/14260/14320
Support: 13700/13646/13565/13488

GBPUSD – Still very strong and a HHHL that tagged the extension level of 1.618 fib. Is way overbought so I cannot buy this. Not ready to sell it either though. A strong NFP for the Yanks will see this reverse.
Resistance: 16820/1.69/1.70
Support: 16660/16300/15950/15830

NZDUSD – The technicals are outperforming the fundamentals and the Kiwi is outgunning the Aussie.
Resistance: 8676/8745/8842
Support: 8523/8434/8090

USDCAD – Still finding strength in the Loonie but this pair will be hard to trade.
Resistance: 11170/11233
Support: 10953/10859/10715

USDJPY – Is disappointing and going nowhere. Kuroda did not change his stance but the market took this to be bullish Yen. Nothing to trade here.
Resistance: 105.57/108.35/110.50
Support: 101.40/100.62/100/99.80

GOLD – Works its way lower and a break of support would see a run south to test the production cost price of gold at around $1,180
Resistance: 1427/1480
Support: 1,265/1,180/1,040

Resistance: 1427/1480
Support: 1,265/1,180/1,040

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