Daily Market Review - 05/30/2014

EUR/USD

Currently we see that the pair is trying to get back above the line, which now serves as near term resistance after being broken as support. Analysts assume that there is high change of the rate coming back within the range and fluctuating there.

USD/JPY

Apparently the pair is consolidating between the boundaries and is trading zig zags. Now it is ascending in the direction of the upper boundary which is going to be tested soon.

GBP/USD

The line has been just breached, what can be seen on the chart. Nevertheless the bias remains bearish and most likely the major trend is going to recur.

Market Overview

The Pound found support and stabilized after Wednesday sales and the beginning of the week, but there is no certainty that sales are going to be over.

British Pound this week doesn’t have much luck: correction, which started in the end of last week, stopped on Monday, but recurred on Tuesday.

On Thursday the Pound stabilized. Britain released statistics according to which cars’ manufacturing in the country had increased by 21% up to 133.437K. 106.5K cars have been exported. Data were positive and demonstrated that the state of British economy was quite good.

Though it is quite possible that current stabilization in the pair is temporary and a bit later sellers will come back to the market. In light of that it is not ruled out that the goal of “the bears” will be 1.6660 level, the session minimum of April 15.

In the long term expectations on the pair are most likely positive, which is why the dip to the local trough might be used for positions increase.

Yesterday there was American GDP revision, which was quite influential. Actual figure turned out to be lower than forecasted. GDP Price Index remained on the same level. Pending Home Sales turned out to be smaller than expected.

Economic Calendar

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