Morning Report: Week & Month End, Positions Pared

Market Commentary                                                                                                                                        

EURUSD pared the early losses and rose to 1.0958 high on the consolidation of USD rally. Greek spokesman Sakellaridis said a deal was close and all creditors were working towards a solution. Eurozone economic sentiment indicator in May remained unchanged at 103.8, better than expected 103.5. Interbank reports suggest large option expires continue to bracket price action today we get 2.7Bln at 1.09 and 1.89Bln at 1.10 at today’s NY cut.

GBPUSD dropped after showing UK GDP data grew only 0.3 percent in the first quarter, compared with the previous three months. Cable shed around 20 pips instantly and slipped to 1.5259 low when US session started, then the pair rebounded above 1.5300 after the release of soft US data. Cable has been better bid overnight with month end flows likely playing a role, Interbank players still playing for more downside while 1.54 caps upside.

USDJPY gained 0.2 percent to 123.94 and has reached a high of 124.46 overnight, the strongest level since December 2002. Japan unemployment rate printed at 3.3 percent, beating the estimated 3.4 percent.The yen has not reached excessively weak levels,according to comment from Japanese Economy Minister Amari. Players are becoming cautious on the potential for further position adjustment today with month end and the potential for further comments from officials regarding recent moves in the domestic currency.

Technical  Commentary 

EURUSD Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks) Bearish

While bids at 1.08 continue to support expect 1.1050 test from below, break of 1.08 targets 1.0660 next

Order Flow indicators; OBV sideways to down, Linear Regression pierces midpoint from below, Psychology bearish but attempting retest of midpoint from below

Monitoring intraday price and Order Flow indicators on a test of 1.1050

eu2015-05-29 07_41_16-

GBPUSD: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks) Bearish

While 1.53 supports expect test of 1.5550 from below failure at 1.53 opens 1.5050 next

Order Flow indicators; OBV sideways, Linear Regression and Psychology bearish

Monitoring intraday price action and Order Flow indicators on a test of 1.53 or 1.5550

gu2015-05-29 07_43_16-

USDJPY: Short Term (1-3 Days): Bullish  – Medium Term (1-3 Weeks) Bullish

124 target achieved while 123 supports intraday expect 125. Below 122 concerns near term bullish bias.

Order Flow indicators; OBV sideways, Linear Regression and Psychology bullish but stalling

Monitoring intraday price action and Order Flow indicators on a test of 124.50 or 122

uj2015-05-29 07_45_29-

EURJPY: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks) Bearish.

134/133 continues to support now retesting the broken ascending trendline from below as this area rejects potential to retest 134 a break here sets retest of highs and potential 138 foray. Below 133 expect 130/131 base test.

Daily Order Flow indicators; OBV sideways to down, Linear Regression and Psychology pierce midpoints from below

Monitoring intraday price action and Order Flow indicators on a retest of 133 or 137/138

ey2015-05-29 07_46_45-

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