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Friday, May 19th
The EUR/USD pair broke out of its consolidation corridor in early Europe to the upside, as the greenback seems to have resumed its weekly downside after its recent moderate rebound. Yesterday the pair slightly corrected after its 4-day bullish rally and consolidated its brief retreat on the back of greenback’s attempt to recover its position across the market. Adding to the USD weakness, today investors are digesting latest headlines on D.Trump’s budget release, which is scheduled on next Tuesday and does not look very realistic in the opinion of the market. Nothing much is scheduled in data calendar for this Friday, so broad market’s sentiments, based on US dollar’s price dynamics, will continue to determine pair’s further direction.
The AUD/USD pair is trading today near upper bound of its consolidation pattern, having posted a daily high at 0.7428 and low at 0.7407. Yesterday the Aussie failed to hold its positions, gained after positive data from labor market, as broad risk-off trend was a key driver across the market. However, the pair managed to recover some pips in Asia, as the US dollar apparently failed to extend its correction and stepped lower against its main competitors. Adding to that, returned optimism in oil prices has reignited better tone around higher-yielding assets, thereby supporting Australian bulls. Looking ahead, the economic calendar of this Friday remains empty, so the pair will continue to trace global markets sentiments at the end of this week to determine its further direction.
The GBP/USD pair follows global markets trend and is consolidating its position within 15-pips range near the mid-1.2900s after volatile trade, seen during last trading session. Yesterday the pair managed to refresh its multi-month highs above its psychological resistance of 1.3000 on the back of surprisingly strong UK Retail Sales data. However, the Cable was unable to retain its positions and crashed to its yesterday’s lows, marked at 1.2890 spot, in NY afternoon with no reasonable explanation. Nevertheless, the spike was short lived and the pair corrected higher to its comfort zone, as the greenback stalled its recovery. Today nothing noteworthy is scheduled in data calendar, so global market’s sentiments will remain as a key driver for the pair at the last working day of the week.
The USD/JPY pair is trading with bearish bias today, however, remaining above the 111.00 handle. Yesterday the pair managed to recover part of its losses, stepping away from its nearly 4-week lows, posted at 110.24, on the back of improved risk-on sentiments somewhat. However, the situation can soon change, as nervousness ahead of Trump’s budget release, which is scheduled for next week, is gathering pace, thereby cheering up sentiments around the safe-haven assets. Adding to that, weaker sentiments around the dollar continues to navigate the market at the last working day of the week, providing extra bearish pressure on the pair this Friday. Looking ahead, we have no relevant economic data on the cards today, so broad market’s trend will continue navigating the major at the end of this week.
The main events of the day:
CAD Core CPI – 15.30 (GMT +3)
CDACore Retail Sales – 15.30 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1020 R. 1.1212
USDJPY S. 109.64 R. 112.64
GBPUSD S. 1.2798 R. 1.3118
USDCHF S. 0.9728 R. 0.9858
AUDUSD S. 0.7373 R. 0.7489
NZDUSD S. 0.6848 R. 0.6974
USDCAD S. 1.3525 R. 1.3707
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