Market Movers: Forex Majors Update 5/28

by on May 28, 2014 6:48 pm BST

EURUSD: The euro-dollar has traded below 1.3600 and the 200 EMA on the daily chart. A close below this level will push the pair lower to 1.3545 and then 1.3475. The eurozone saw a series of less than expected data earlier this morning, as the German unemployment grew by 24,000 and import prices contracted .3 percent.

GBPUSD: The pound continues to fall against the dollar as data showed that retail sales grew less than forecasted. The Confederation of British Industry’s Index of UK retailers fell to 16 from 30 in April, which is adding steam to the downside after a poor BBA mortgage approval figure yesterday. Price action has plowed through 1.6785 and is currently testing price action support at 1.6700 and the 72 EMA. If demand is seen, a pullback to the 50 EMA is a possibility. However, momentum should carry the pair to 1.6655/60.

USDCAD: The US dollar hit an eight-week high but is only up modestly against the Canadian dollar. Traders are finding support near 1.0843, but resistance could be found at 1.0900, or the 20 EMA. There is a 50/72 EMA bearish crossover in the works, but the current strength in the dollar should keep the pair stable. However, the intraday price action on US dollar futures are trending in overbought territory and could see a pullback to keep the pair relatively range bound.

AUDUSD: The Australian dollar is down against the dollar on risk aversion, with commodity currencies pulling back. The pair have been range bound on the daily chart with price action encapsulated between price action support at .9215 and the 200 EMA, roughly .9265. The +/- DMI bearish divergence is growing, which will retest support a retest of support. If broken, the pair would trade lower to the next level of support at .9160. A move to the upside will see resistance at the 50 EMA before retesting the 200 EMA.

NZDUSD: The kiwi hit a 10-week low on poorer than expected business data, as well as lumped into a commodity currency sell-off. Traders continue to speculate the value of the kiwi after putting in a high of .8778. Economic data continues to come in lukewarm, while concerns about dairy prices will weigh on the pair. The ANZ Business confidence index fell substantially from 63.8 to 53.5. Resistance at .8680 held, and price fell through support levels of .8540 and .8510, while finding some support at the third support level of .8470.

USDJPY: The yen has seen demand after the S&P 500 made another new high, before pulling back into negative territory. The US dollar has remained strong throughout the session on safe-haven demand, but the pair has fallen from 102.13 price resistance on the 1H chart and currently trading at 101.77. Traders found support at 101.65, but the pullback is being capped by the 200 EMA on the hourly chart. The dollar-yen has been unable to find any real conviction to move higher as demand for the yen remains stable during periods of poor economic data and growing geopolitical tensions.