The Forex Insight for 24th May for major currency pairs are as follows:
The EUR/USD pair held on to its modest recovery gains above the 1.1700 handle.
The ongoing US Dollar profit-taking slide, triggered by a dovish assessment of Wednesday's FOMC meeting minutes.
USD showed little signs of easing amid a sharp retracement in the US Treasury bond yields and following an unexpected rise in the US initial weekly jobless claims.
The pair would need to advance beyond 1.1790 to gain some further upward traction and retest the weekly high at 1.1829.
GBP/USD: bulls capped by the 100-hr SMA, but if that were to give, opens risk towards key 1.3450 (50-W SMA).
GBP/USD is trading at 1.3387, with a high of 1.3422 and a low of 13349.
The technical readings lean bearish and are stacked up against the bulls. However, 1.3301 comes as the Dec 14 low and a potentially strong level of support.
1.3040 is a key downside target as the Nov 3 low. On the upside, a break of the 100-hr SMA at 1.3410 eyes for a test of 1.3450 (50-W SMA) and that would open the scope towards the 10-D SMA at 1.3478.
USD/JPY recovers after the slide that followed Trump’s announcement.
US President canceled a meeting with the North Korean leader and triggered risk aversion.
The USD/JPY pair dropped to 108.94 after US President announcement, reaching the lowest in two weeks.
The yen is rising for the third day in a row against the US dollar. From the weekly high USD/JPY lost more than 200 pips.
The AUD/USD pair rose further during the US session and printed a fresh daily high at 0.7580.
The Aussie was unaffected following US President Trump cancellation of the meeting with Kim Jong-un.
AUD/USD continues to move with an upside bias supported by an uptrend line. If it manages to end the day at current levels it would be the highest close in a month.
To the upside, resistance levels might be seen at 0.7590, followed by 0.7605/10 (May 22 high) and 0.7650. On the flip side, supports could be located at 0.7545, 0.7530 (uptrend line from May 9 low) and 0.7490/95.