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Housing Data Drives USD

ByTalking Forex
Published 05/28/2013, 11:02 AM
Updated 07/09/2023, 06:31 AM
EUR/USD

The recovery by the pair by mid-point of the session was short lived after the release of better than expected US macroeconomic data further buoyed the USD and in turn weighed on the pair. Technically, the pair remains on track to make a test on the psychologically important 1.3000 level, however a break above would likely require a pick-up in momentum which may materialise should the President of the ECB downplay the need for another cut to the benchmark borrowing rates. On the other hand, support levels are seen at 1.2821, 1.2809 and then at 1.2796.

GBP/USD
The pair mimicked the price action by its major counter-part EUR/USD for much of the session and settled lower, driven by a firmer USD which was a by-product of the recovery by the JPY. In terms of fundamental news flow, according to the CBI, business optimism in the services sector across May reached record highs, with confidence in the consumer services sector reaching the highest in 14 years. In terms of technical levels, supports are seen at the 76.4% retracement of the 1.4832 to 1.5607 move at 1.5015 and then at the 21-DMA lower Bollinger level at 1.4955.

USD/JPY
The pullback in the JPY overnight saw the major pair edge back above the 102.00 level, as market participants used the recent bout of selling pressure as an opportunity to re-establish long positions, especially since the pair remains in an bullish price pattern. Technically, resistance levels are seen at the 61.8% retracement of the 103.74-100.75 level at 102.59 and then at 103.74. On the other hand, support levels are seen at the 21-DMA line at 100.81 and then at 100.37, which is the Kijun-Sen line.

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