Weekly Fundamental News – May 26, 2014

Here are the notable news releases for this week.

For Monday, it will be quiet in general as UK and US banks will be closed to observe Spring Bank Holiday and Memorial Day, respectively.

For Tuesday, we will have Switzerland’s Trade Balance; UK BBA Mortgage Approvals; US S&P/CS Composite-20 HPI, Durable Goods Orders, and CB Consumer Confidence.

For Wednesday, we will have BOJ Kuroda’s speech; New Zealand’s ANZ Business Confidence; Australia’s quarterly Construction Work Done; Germany’s Unemployment Change; France Consumer Spending; Spain’s HPI; Euro-area Private Loans and M3 Money Supply; and UK CBI Realized Sales.

For Thursday, we will have Japan’s Retail Sales; Australia’s HIA New Home Sales and Private Capital Expenditure; Canada’s Current Account; US Unemployment Claims, Preliminary GDP, and Pending Home Sales.

For Friday, we will have New Zealand’s Building Consents; Japan’s Preliminary Industrial Production, Household Spending, and Tokyo Core CPI; German Retail Sales; Switzerland’s KOF Economic Barometer; Canada’s RMPI, IPPI, and GDP; US Chicago PMI, Core PCE Price Index, Personal Spending, and Revised University of Michigan Consumer Sentiment.

Weekly Technical Analysis: May 26, 2014

EURUSD

We have seen harsh price action in the past few weeks after the failure of bulls to clinch a foothold at the 1.4000 level. Currently, the pair is trying to form support around the low-1.3600s following last week’s choppy price action. An immediate move through 1.3800 would negate the current bearish pressure.

USDCHF

Since May 8, USDCHF has been on the rise and bulls are loving it. The pair is now aiming for a foothold at the 0.9000 level, particularly if they can maintain control of 0.8900 in the coming days or weeks. There are lots of wood to chop ahead of ultimate resistance at 0.9800.

USDJPY

USDJPY bears have successfully implemented their plan, as the pair hit its fourth consecutive lower weekly low beyond the 101.00 level. However, a significant bounce ensued during the mid-week that enabled bulls to print a weekly bullish reversal. The reversal took price just a few pips below the 102.00. This week is critical and bulls must take advantage of this momentum.

NZDUSD

NZDUSD sank more than 120 pips last week after the 0.8600 level gave way to intense pressure. Bears will likely attempt for a follow-through move this week and aim for 0.8200-0.8300 next. On the other hand, bulls must bring price back to 0.8700 to prevent further price declines in the coming weeks.