20 May Probability Studies – Germany ZEW, US PPI Closely Watched

The Greenback strengthened quite a lot on the back of the better-than-expected Leading Indicators figure released in the US yesterday, but could not sustain the low of 1.5485. The Germany ZEW economic sentiment figure will be closely watched today as well as the PPI which will be released in the US.

Herewith the Probability Studies for Today:

EUR/USD – Bullish Trading Condition. The sharp pullback we saw yesterday could not be sustained and now price is trending higher once gain. The bullish 1 hour indicators combined with the bullish 60minute trend confirms the bullish outlook

USD/JPY – Bearish Trading Condition. Although the Stochastic is clearly oversold, we all know that an oversold indicator – especially the Stochastic – within a bearish probability can be misleading. As long as price takes out new lows and the indicators stay bearish, this great bearish probability will prevail

GBP/USD – Bullish Trading Condition. The bullish 60minute trend is still intact, placing the GBP within a suitable bullish trading condition. The 1.9622 resistance is still significant as it resembles the previously violated Current Trend Support (now resistance). The fact that the indicators are bullish strengthens the bullish bias. Please note that ANY bearishness from a market rhythm perspective will place the Sterling in a no trade zone

USD/CHF – Bearish Trading Condition. Although the bearish cross on the 1 hour Stochastic is not confirmed, the fact that we have a great bearish 60minute trend as well as bearish trending market rhythm could still present ample trading opportunities today

To view a more in-depth analysis on the other pairs such as the AUD and CAD crosses, please visit our Live Trading Room at http://www.fxinstructor.com/eng/support/webinar.php to see and hear our FXInstructors analyse the markets and identify trades