Euro Breaks 1.4000
CURRENCY TRADING SUMMARY – 25th May (00:30GMT)
U.S. Dollar Trading (USD) with the market still in sell dollar mode the major EUR/USD level at 1.400 was tested for the first time since January. Quiet stocks kept the market focused on the AAA rating story that is responsible for much of the Dollar weakness. Crude Oil finished up $0.62 at $61.67. In US share markets, the Nasdaq was down 3 points or -0.19% and the Dow Jones was down -14 points or -0.18%. Looking ahead, Bank Holiday in the US and UK today.
The Euro (EUR) the break above 1.4000 was relatively calm with the market not ready to push further without extra stimulus. The move higher was aggressive during the week and could be in store for consolidation if the AAA story fades from view. Overall the EUR/USD traded with a low of 1.3885 and a high of .1.4051 before closing at 1.4011. Looking ahead, German IFO Business climate forecast at 85.5 vs. 83.9 previously.
The Japanese Yen (JPY) found solid support under 94 Yen before rebounding as the crosses led the pair higher. EUR/JPY closed above the 200 DMA at 130.80. GBP/JPY was also well supported above 150 Yen. The BOJ met and held at 0.1% but did upgrade the economic outlook for the first time in 3 years. Overall the USDJPY traded with a low of 93.87 and a high of 94.92 before closing the day around 94.20 in the New York session. Looking ahead, BOJ Monthly Report.
The Sterling (GBP) traded close to 1.6000 but failed to challenge the level as concerns about UK debt rating and the public holiday on Monday kept the pair contained. EUR/GBP failed to make new lows as the Euro found resurgent strength. GBP/AUD also consolidated gains above the 2.03 as the pair rebounds from below 2.00. Overall the GBP/USD traded with a low of 1.5757 and a high of 1.5945 before closing the day at 1.5920 in the New York session.
The Australian Dollar (AUD) traded comfortable above the 0.7800 level although equity weakness stopped the pair holding the gains into the weekend. USD weakness is competing with cautious return of risk aversion. Ongoing bullish commodities are helping to underpin the AUD rally. Overall the AUD/USD traded with a low of 0.7773 and a high of 0.7870 before closing the US session at 0.7820.
Gold (XAU) made small gains tracking Oil but failed to convincingly hold the $960 level. Overall trading with a low of USD$950 and high of USD$962 before ending the New York session at USD$957 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3531 |
1.3728 |
1.4020 |
1.4058 |
1.4148 |
|
USD/JPY |
92.52 |
93.54 |
94.65 |
96.70 |
97.84 |
|
GBP/USD |
1.5450 |
1.5519 |
1.5920 |
1.6198 |
1.6464 |
|
AUD/USD |
0.7451 |
0.7630 |
0.7825 |
0.7929 |
0.8097 |
|
XAU/USD |
925.00 |
936.00 |
957.00 |
967.00 |
978.00 |
Euro – 1.4020
Initial support at 1.3728 (May 21 low) followed by 1.3531 (May 19 low). Initial resistance is now located at 1.4058 (Jan 2 high) followed by 1.4148 (Dec 31 high)
Yen – 94.65
Initial support is located at 93.54 (Mar 19 low) followed by 92.52 (Mar 19 low). Initial resistance is now at 96.70 (May 19 high) followed by 97.84 (May 12 high).
Pound – 1.5920
Initial support at 1.5519 (May 21 low) followed by 1.5450 (May 21 low). Initial resistance is now at 1.6198 (Nov 5 high) followed by 1.6464 (Oct 31 high).
Australian Dollar – 0.7825
Initial support at 0.7630 (May 19 low) followed by the 0.7451 (May 18 low). Initial resistance is now at 0.7929 (50% retracement of 0.9847-0.6012 decline) followed by 0.8097 (Sep 30 high).
Gold – 957
Initial support at 936 (May 21 low) followed by 925 (May 20 low). Initial resistance is now at 967 (Mar 20 high) followed by 978 (Feb 25 high).
