Daily Forex Fundamentals – May 19, 2011

What’s on the Economic Horizon


Unemployment Claims, Existing Home Sales, and Philly Index on Deck

U.K. Retail Sales to Rise 0.9%?

U.S. Dollar (USD)

The dollar’s price action was as mixed as bowl of fruit salad! While it did post a gain over the pound and the yen, the dollar lost slightly against commodity-based currencies and the euro. USD/CAD, for instance, fell to .9706 after opening the day at .9726. Read more…

Euro (EUR)

While EUR/USD didn’t budge an inch, the euro bulls made sure they took advantage of the weaker yen. EUR/USD stayed within a tight range of just 90 pips, closing just 13 pips higher at 1.4236. Meanwhile, EUR/JPY continued its trek up the charts, rising another 51 pips to 116.25. Read more…

British Pound (GBP)

Boy did traders shed pounds yesterday! Ha! Against the dollar, the pound plunged 183 pips from its intraday high at 1.6289 all the way to 1.6106 where it bottomed. It was only able to pare some of its losses ending of the day at 1.6158. Read more…

Japanese Yen (JPY)

The yen’s price action yesterday was like watching a car make a perfect U-turn! The yen rallied early in the Asian trading session but it was unable to sustain the move and actually gave up ALL of its gains – and then some – by the end of the U.S. trading session! If you look at the chart of USD/JPY for instance, you’ll see that the pair dipped to 80.94 and then it suddenly spiked up to 81.82! Read more…

Canadian Dollar (CAD)

Yawn… Another tight day for USD/CAD, which traded within a tight range of just over 50 pips. After testing at high as .9760, the pair headed lower during the New York session to close at .9706, just 20 pips lower for the day. Read more…

Australian Dollar (AUD)

Did you get chopped up trading the Aussie yesterday? I hope not! Due to the lack of high-profile economic reports in Australia, the Aussie’s price action yesterday was as choppy as my TV reception! AUD/USD bounced around a 100-pip range with resistance at 1.0666 and support at 1.0570. The pair ended the U.S. trading session at 1.0624, a mere 5 pips higher from its day open price. Read more…

New Zealand Dollar (NZD)

Let’s flyyy… Up, up, here we go! The Kiwi flew up the charts during yesterday’s trading thanks to stronger-than-expected inflation figures. At the end of the day, NZD/USD was perched 45 pips higher at .7884 from its opening price. Read more…

Swiss Franc (CHF)

After struttin’ through the charts with swagger for the past couple of days, the Swissy ended yesterday’s trading unchanged against the Greenback and with an 14-pip loss to the euro. Uh oh, could it be in trouble? 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!