Let’s find out what has been moving the market today…
Trading plan for June 6
The US dollar index found support around 94.00. American data released on Tuesday was strong enough: ISM manufacturing PMI significantly exceeded the forecasts, the number of job openings in April was also quite solid. The only news from the United States on Wednesday will be the release of crude oil inventories at 17:30 MT time.
AUD/USD keeps having a lively trading. The pair was rejected down from 0.7660 as the Reserve Bank of Australia didn’t please buyers. This is a former long-term support and now resistance. It will be difficult for the Aussie to push above this level. Australia will release GDP for the first 3 months of the year at 04:30 MT time. The forecast is positive. A disappointment will pull the pair down to support at 0.7545. A good reading will help the Australian dollar but it will still have problems with pushing above 0.7660.
Canadian dollar looks vulnerable versus other currencies. Consider short positions in CAD/CHF and long in AUD/CAD.
EUR/USD failed to break above 1.1720 for 4 days in a row. Support is at 1.1630. A return below his level will make the euro target 1.1550.
GBP/USD also had some difficulties. The pair’s upside is limited by resistance at 1.3400. The UK services PMI increased but the uncertainty related to Brexit keeps hurting the pound. A member of the Bank of England’s Monetary Policy Committee BoE Silvana Tenreyro will speak at 13:40 MT time. She has already said on Monday that although much of the weakness in Britain’s economy in early 2018 would probably prove temporary, the timing of rate hikes was an open question. GBP/USD may spend more time in the 1.34/1.33 range.