It was a miserable day for stocks in New York on Friday. Depending on your positioning it could have been an excellent day for Forex traders. North American trading was dominated by the release of the NFP report. Initially after the data was released the dollar gained strength only to lose ground after thought's of further QE entered traders minds heading into the close. The dollar may run into headwinds in the month of June. It has been rumored of another coordinated injection of liquidity by central banks in Asia , Europe and North America and of possible interventions planned by the BOJ and the Swiss. Heading into next week risk trend should be monitored to see if a pullback is in the cards for the USD. As always keep your trades KEANE and have a great weekend.
EURUSD FINDING A BIT OF SUPPORT
The EURUSD had a skip in its step on Friday after NFP came in much lower than expected. The pairs initial reaction after NFP was to move lower and test price support at 1.23. Traders then began considering the possibility of additional QE and the EURUSD moved aggressively higher. Price action heading into next week will really depend on news flow over the weekend. Support begins at 1.23 followed by trend line support at 1.2275. I would focus on the trend line rather than price levels at this point. Solid daily resistance begins at 1.25.
Sup 1.25
Res 1.23
GBPUSD YOYO TRADING DAY
The GBPUSD took a walk on the wild side today. The cross moved down sharply in European trading after disappointing data. Only to rebound after NFP came in lower than expected. Heading into next week, direction is a bit unclear. If traders begin to beleave in further QE we could see a rebound in the pair over the month of June. support can still be found in the 1.5275/30 zone. A break of this level would create new year to date lows. Resistance begins at 1.5430 and is followed by strong daily price support at 1.5520.
Sup 1.5275/30
Res 1.5520
AUDUSD BOUNCING WITH RISK
The AUDUSD finished the pretty much where it began after dipping to test support at .9580. If the pair continues its accent into the beginning of next week I would expect sellers to emerge at the .98 and .99 price level.
Sup .9580
Res .98 .99
NZDUSD BELOW YEARLY TREND LINE
The NZDUSD has been trading in a narrow range over the last two weeks. Price action has been capped at .7650 and supported at .7460. A break of either of these level could give an idea of which way the pair may be going. Heading into next week I will be watching the yearly trend line around .7560. As long as the pair is below this level my bias will be for a continued move lower. A break above this level could indicate a trend shift heading into the new month.
Sup .7460
Res .7650
USDCAD TESTING THE 1.0420 LEVEL
The USDCAD spiked lower with the rest of the majors after QE thoughts entered traders minds. The pair bounced of resistance at 1.0420 but climbed back towards resistance into the close. To start next week support starts at 1.0310. This pair will follow risk into the open of next week.
Sup 1.0310
Res 1.0420
USDJPY INTERVENTION RUMORS
The USDJPY has been an interesting pair over the last few days. The cross spiked lower after the release of NFP only to shoot up almost 100 pips in 10 minutes. It has been rumored the BOJ intervened but they have not confirmed the action. The cross is now currently in the intervention zone so shorting the pair is a risk proposition. Support is now at 77.60 and resistance begins at 79.
Sup 77.60
Res 79
