FX Wrap:

  • After a massive rally in Asian session yesterday, cryptocurrencies shed some of the gains in U.S session.
  • European indices had initially opened on a mute note; later benchmark indices finished a percent higher on May 14th. KTM symbols: EU50 and FRA40 held 200EA, DE30 and GER30 held 50MA, ITA40 held 20MA (Weekly) whereas SPA35 is the weakest among, lost all the MAs.
  • Among JPY crosses, AUDJPY, CADJPY, CHFJPY, and EURJPY retraced to 50.0% fib reaction (Flash crash low-March high) on top of these NZDJPY retraced to 61.8 fib. Whereas USDJPY tested only 38.2 fib reaction, and its 50.0 fib finds at 108.00. All of these daily RSI indicators remaining oversold whereas the oscillator are mixed.
  • Turning to G10 currencies, EURUSD traced out a double top pattern, cable lost all the moving averages on all time frames (Daily, Weekly, and Monthly) and focus on 1.2860 below here focus shifts to 1.2800/1.2770 (61.8 fib reaction of1.2390-1.3380 rally). The current pattern on the daily chart reminds us of the GBPJPY which was retraced to the C wave on Monday. Coming back to the GBPUSD, the C wave sits at 1.2660 coincides with mid-August low.
  • USDCHF manages to hold the 50MA, so far but the trend remains bearish. Wait for 1.0000-0.9950 levels.
  • AUDUSD remaining weak, mid-week support zone finds between 0.6920-0.6900 it’s 50.0 fib reaction and the 100.fe. The kiwi dollar is facing stiff resistance at two-month descending trendline. Moreover, it has been consolidating between 0.6520-0.6620. A move above 0.6620 could open to 0.6680 and 0.6700 in the near term.
  • USDCAD has been consolidating between 1.3520-1.3375.

News: US President Trump: (Fed) A little quantitative easing can make US GDP growth reach 5%-Wallstreetcn.

What’s on today?
Asia: Australia March Wage Price Index and China Retail sales and Industrial Production
Europe: EZ 1Q GDP
US: April Retail sales and April Industrial Production.

Chart of the day:

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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