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Slow Friday in Europe after positive week
The G7 in Japan ended today with a generic statement from the members: “Global growth is our priority”, and the seven nations seem ready to do whatever it takes to improve the economic expansion through the monetary policies’ instruments, although the monetary policies alone are not enough to remedy to all economic problems of the moment.
Europe started the session flat due to an empty morning calendar. Traders are concentrated on the US Preliminary GDP q/q (expected 0.8%) coming out at 13.30 GMT. There are also hopes that Fed Chair Yellen could give out any hint regarding the Fed's policy path at her speech scheduled at 18.15 GMT.
The EURUSD tested the 1.1200 resistance, then it fell back at 1.1175. The bearish trend which has started at the beginning of May might continue with next support at 1.1132 (38.2% Fibonacci retracement on February to May rise) and the 200-day moving average, 1.1070.
A dovish speech from Gov. Yellen might push the pair higher to 1.1218 (100-day moving average) and even to 1.1224 (50% Fibonacci retrace).
Consumer prices fell in Japan for the 2nd consecutive month, this puts more pressure on the BoJ Gov. Kuroda ahead of the next meeting in mid-June, where he is expected to increase the quantitative easing. The USDJPY has moved in consolidation right below 110.25 resistance and above 109.20 support, which is 50-day moving average.
GBPUSD retraced in a pullback move at 1.4660 after breaking the 200-day moving average. Cable seems set up to a rise and shine towards the 1.4664 resistance, but the US data and Gov. Yellen speech might provide new strength in the US dollar. First support level is eyed at 1.4548.
The AUDUSD seems to rely on the solid support at 0.7200, and with the MACD in the positive territory, we might expect a new upside. The first resistance is eyed at 0.7279 (200-day moving average). If the US dollar finds strength, we might see a fall to the key mid-term support of 0.7144 (May 23rd low).
After a 7-days losing streak, Gold failed to push above the 1225, yet slipped below the 1220. The next support level is at 1204 (61.8% major Fibonacci retracement on December to May rise). We might witness a rebound from this level, or a further fall with consequent inversion of the mid-term trend to bearish. The first resistance is seen at the 1230 (100-day moving average) and if this level is surpassed, the gold might even try a recovery up to 1242 (76.4% Fib retrace).
WTI after surpassing briefly the 50$/barrel yesterday, lost some grip and fell back to 49$. Offers abound above the 50$ level, while the first support is seen at 48.63 (May 25th low) before 47.39 (May 23rd low).