Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will likely NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.
In the news:
Far right and populist elements didn’t gain as much ground as expected in the European Elections over the weekend.
UK PM Theresa May announced she will resign on 7 June. A new PM is set to be installed by end-July.
Asian stocks remain at around 4-month lows with oil prices in a similar holding pattern.
The following are the orderbook outlooks.
EURUSD bids remain strong around 1.1145 as are offers from above 1.1235. There’s a noticeable pivot at 1.1175 dollars, which also corresponds to a set low target on the M5 chart.
Cable is in a holding pattern around the pivot at 1.2715. The pound is only briefly supported on the back of PM May’s resignation announcement. Realistically, only a miracle can bring the UK out of the Brexit blood fest that is to come.
The Aussie won’t be breaking out of the yellow zone in the H1 chart below any time soon.
USDJPY is now back to range around the familiar 109.55 yen pivot.