29 May: Euro decline resumes as Italy faces new election risks. Fed’s Bullard speaking in late Asian time.

By | May 29, 2018

 

The session started on a positive note with risk assets in demand on news that the US-North Korea summit may yet still be happening but as traders digested the imminent possibility of fresh elections in Italy the Euro began to shake off its Asian session rise and then fell sharply, to a new 6 month low against the dollar, with further downside momentum looking very likely. It has been a UK/US holiday so liquidity is thin and most of the other pairs are not too far removed from their previous levels. Gold remains heavy, just under 1300, as does WTI at 66.5. US stock markets are closed for the day.

Looking ahead, it will be another thin calendar for the coming session although, with the US and the UK back from holidays, the session will see greater liquidity. The Japanese Unemployment data for April and a speech from the fed’s Bullard will be the key points in Asia. Europe is pretty much data free, while the US will only have the Case Shiller House Price Index (Mar) and the Dallas Fed Mfg Business Climate (May) to contend with. Things will warm up tomorrow, with the US GDP (Q1-Preliminary) and then on Friday we get the US Jobs/NFP/Average Hourly Earnings.

I will now be travelling for 3 week’s so updates will be limited and rather sporadic.

CURRENCIES
EURUSD: 1.1624
Res  1.1640  1.1670  1.1700
Sup  1.1605  1.1580  1.1550
USDJPY: 109.41
Res  109.50  109.75  110.05
Sup  109.20  108.95  108.80
GBPUSD: 1.3309
Res  1.3330  1.3350  1.3385
Sup  1.3290  1.3270  1.3250
USDCHF: 0.9933
Res  0.9945  0.9960  0.9975
Sup  0.9920  0.9900  0.9885
AUDUSD: 0.7546
Res  0.7560  0.7585  0.7605
Sup  0.7540  0.7520  0.7500
NZDUSD: 0.6941
Res  0.6960  0.6975  0.7000
Sup  0.6905  0.6880  0.6850
INDICES / COMMODITIES
S&P: 2722
Res  2735  2745  2755
Sup  2715  2705  2690
DJ30: 24770
Res  24880  24975  25080
Sup  24680  24580  24470
SPI200: 6004
Res  6020  6045  6065
Sup  5995  5975  5945
XAUUSD: 1298
Res  1305  1310  1315
Sup  1295  1290  1285
XAGUSD: 16.47
Res  16.60  16.70  16.85
Sup  16.40  16.30  16.20
WTI: 66.45
Res  67.00  68.00  69.00
Sup  65.75  65.15  64.45