London markets shook off a weakening pound and a disappointing industrial orders figure to erase Monday’s decline. The U.K.’s FTSE 100 (UK:UKX) is higher at 7,366.1, rising 0.8% to more than wipe out Monday’s 0.5% decline.
Based on the early price action and the current price at 97.900, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at 97.950.
Economic Calendar stays lighter amid lack of EUR-specific events. Meanwhile, Greenback traders staying bullish over the upcoming US Housing Data.
In commodities, crude oil gained 0.7% to $63.67 a barrel. Gold futures fell 0.1% to $1,275.45 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.2% to 97.907.
May is definitely an interesting month on the market. It is hard to generally say if this is a month of a USD, or safe heavens or for example Bitcoin.
Based on the early price action, the direction of the AUD/USD the rest of the session is likely to be determined by trader reaction to the long-term uptrending Gann angle at .6886.
Based on the early price action, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 110.030. A sustained move over 110.030 will indicate the presence of buyers. Taking out 110.318 will negate the reversal top, while a move through the 50% level at 110.355 could trigger a spike into the short-term Fibonacci level at 110.672.
Look for the downtrend to continue at a pace of .001 per day as long as the NZD/USD remains under this level. Crossing to the weak side of the downtrending Gann angle at .6509 will indicate the selling pressure is getting stronger. This could trigger an eventual break into .6465 and .6424.
Investing.com -- The dollar hit a fresh three-week high against its developed-market peers in early trading in Europe Tuesday, after Federal Reserve Chairman Jerome Powell indirectly argued against cutting interest rates in the near term due to the already-high level of corporate debt.
The RBA talks of rate cuts to pin back the Aussie Dollar as trade war jitters linger. Another quiet day on the stats leaves geopolitical risk in focus.
Investing.com - Prices of safe-haven gold slipped on Tuesday in Asia, while stock markets rebounded as traders cheered a reprieve in U.S.-China trade tensions after Washington temporarily eased restrictions on Chinese telecommunications giant Huawei.
Investing.com - The Australian dollar slipped against its U.S. counterpart on Tuesday in Asia after the Reserve Bank of Australia hinted that it would consider a case for a rate cut in June.
The Australian dollar rallied as much as 1% on Monday after the incumbent Liberal-National government retained power in a surprise election result defeating the favored Labor party.
The Safe-haven pair dropped from last week’s high amid positive Japanese data and plunging USD Index. Iran Foreign Minister commented on Trump’s tweets against Iran as “genocidal taunts”.
The gold market stabilized a bit during the trading session on Friday, reaching towards the $1275 level Overall. There is a significant amount of support underneath so therefore it’s not a huge surprise to see that we could continue to break down after a couple of negative sessions.
The US dollar when sideways against Japanese yen for the most part during the trading session on Monday. At this point, it looks like the market is trying to figure out what is going to do about the US/China trade situation.
The British pound stabilized a bit during the trading session on Monday, showing signs of indecision. We are hanging just above the 1.27 level, an area that I have pointed out in the past that is relatively important.
The British pound initially tried to rally against the Japanese yen during the trading session on Monday, but a slew of press releases from China of course has poured cold water on the rally.
The Euro went back and forth during trading on Monday, as we continue to question global growth and the entire US/China trade situation. Overall though, I think that this sets up some choppy trading in the short term.
After the conservatives held onto the PM position in Australia, the Australian dollar rallied quite significantly right at the open, gapping above to force more of a “risk on” move. This is especially impressive considering that the United States and China are chirping at each other yet again.
Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20. A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.
Fundstrat Global Advisors Managing Partner Tom Lee joins Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Sozzi, and Andy Serwer to take a look into the likelihood of "massive risk-on rally" and a trade war-sparked recession.