Daily Forex Fundamentals – May 18, 2012

What’s on the Economic Horizon

German PPI Expected to Show a 0.4% Rise in Prices
Canadian Inflation Figures on the Docket

U.S. Dollar (USD)

The Greenback’s domination came to screeching halt yesterday as the U.S. dollar index formed an almost-perfect doji in its daily chart. The U.S. dollar index began the day at 81.92, fell during the Asian session to 81.72, rallied strongly during the European session to 82.15, and then dropped again to close the day barely changed at 81.91. Read more…

Euro (EUR)

Rough day for the euro, as EUR/USD tested new lows at 1.2670, while EUR/JPY sank over 120 pips to establish new lows at 100.70. Can the euro pare some of its losses or will the beatings continue today? Read more…

British Pound (GBP)

Look down beloooow! Investors dropped the pound in yesterday like it was a hot potato. GBP/USD tapped its 6-week low at 1.5794 before it closed the day at 1.5805, 109 pips below its opening price. Meanwhile, GBP/JPY ended the day a whopping 250-pip loss at 125.25. Read more…

Japanese Yen (JPY)

Thanks to a better-than-expected GDP from Japan, risk sentiment improved yesterday. As a result, USD/JPY’s sell-off stopped, and the pair closed the day barely changed from its opening price during the Asian trading session. In fact, if you look at USD/JPY’s daily chart, you’ll see the most recently completed candle was gravestone doji. Read more…

Canadian Dollar (CAD)

Make that four in a row! With risk aversion reigning supreme, USD/CAD continued to shoot up higher, as it posted its 4th consecutive green candle, with the pair closing 63 pips higher at 1.0190. Will we see the pair go for a clean sweep or will Loonie bulls have something to say about that? Read more…

Australian Dollar (AUD)

Due to the absence of tier 1 market-moving data from Australia yesterday, AUD/USD was unable to make significant moves yesterday. It mainly traded in a range and closed the day exactly where it opened at 1.0260. Read more…

New Zealand Dollar (NZD)

Bulls and bears were neck and neck in trading NZD/USD yesterday. The pair just bounced off resistance at .7680 and support at .7635 all throughout the day. When trading was over, the pair settled 4 pips above its opening price at .7639. Read more…

Swiss Franc (CHF)

The Swiss franc still hasn’t gotten its swag back. It scored its eighth consecutive loss to the dollar yesterday when USD/CHF closed 3 pips above its opening price at .9454. Boo! Read more…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!

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