Article Highlights

  • French, German and Swiss Banks closed in observance of Ascension Day
  • US preliminary GDP drops by 1.0% vs. 0.5% slip expected and initial 0.1% growth reading
  • US initial jobless claims down to 300K vs. 327K previous and 318K expected
  • US pending home sales up by 0.4% April vs. 3.4% uptick in March
  • CA current account deficit narrows from 15.6 billion CAD to 12.4 billion CAD in Q1 2014
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Forex price action was understandably muted during the U.S. trading session as some European markets were out in celebration of Ascension Day.

Mixed reports from Uncle Sam didn’t help either. Although the second reading of the U.S. GDP disappointed expectations, an uptick in the closely-watched U.S. bond yields as well as strong equities performance kept the dollar bears in check.

USD/JPY bottomed out at 101.43 before capping the day near 101.80 while USD/CHF found support at .8956 before closing at .8978.

Meanwhile, the Aussie continued to clobber its major counterparts. As I mentioned in my London session recap, speculations of more corporate spending in the Land Down Under attracted the currency bulls.

AUD/USD rose by 30 pips to the .9300 area; AUD/JPY inched 20 pips higher to 94.74; EUR/AUD slipped by around 48 pips to the 1.4600 MaPs support, and GBP/AUD fell by a whopping 60 pips to the .7950 zone.

Let’s see if we could get more action from today’s Asian session traders. A couple of hours ago we saw the GfK consumer confidence report from the U.K. as well as a slew of tier 1 and 2 economic data from Japan. The yen crosses are currently slipping across the board so you might want to pay attention to how traders will trade the yen for the next couple of hours. Also keep your eyes on comdolls such as the Aussie and the Kiwi, which could present nice intraday retracement setups while they’re weakening against the yen.

See also:

London Session Recap

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!