Hello, it’s Wednesday, May 30, 2012, and I’m Martin Smith with the daily outlook
from UFX Markets.
Wall Street closed the trading day in the green as the NASDAQ rose by 0.70% closing
at 2,556, the Dow added 1.00% to its value, closing at 12,567, and the S&P gained 1.00%
to close at 1,331.
The US Dollar gained versus most major currencies as investor concern about Spain’s ability
to recapitalize troubled banks increased, boosting bets the union’s debt crisis is
worsening. Today, Pending Home Sales are expected to stay unchanged at 0.00% vs. 4.10% previously.
Gold declined by 1.15% closing at $1,554 an ounce as the metal’s trend remains bearish
and the $1,558 support level was broken. If Gold stays below $1,555 it is expected to
decline towards the $1,541 level and even $1,531. Crude oil fell for a second day in
a row by 0.30% to close at $90.80 a barrel.
Trading below 1.2570 will keep the momentum of the EUR/USD negative.
Currently the EUR/USD is near the weekly bottom level at 1.2400 which if breached could send
the pair rallying downwards towards its lowest level since May 2010. Overall, the EUR/USD
traded with a low of 1.2460 and with a high of 1.2574.
If the GBP/USD maintains its resistance level of 1.5710, the trend remains bearish and it
may test its strong support level of 1.5600 again. If the pair breaks below this, it may
reach 1.5420.
The trend for the AUD/USD pair will continue to be bearish if it maintains its resistance
level of 0.9900. According to the moving average tool the trend remains bearish. No economic
data is expected today.
