Forex Markets were once again relatively subdued, with no real drivers in place on Wednesday. As a result, the USD was weak, before getting a late bounce.

The key data point was the US Trade Balance and it came in above expectations. The US April trade deficit came in at $46.2 billion vs $49.0 billion expected.

Despite that number, the US was weaker early, coinciding with US equity markets before we saw some more upside in late trade.

The EUR/USD managed to hold up at the 1.1800 level. Shain has some more on that here. The Euro has had a nice run over the last few sessions as the fear surrounding the Eurozone takes a back seat for the time being. We are also hearing more and more talk that the ECB is getting ready to unwind QE, making the next meeting a crucial one.

In Asian trade today, the attention will be back on the Aussie, as we have trade data coming out. The last week has been strong for the AUD/USD as there have been a number of strong data points, including yesterday’s solid GDP number.

USD Finds Support

Our resistance area of 95.00, is now starting to look further and further away, as price continues to decline on the US dollar index.

Yesterday’s selling wasn’t able to get any support at the 93.75 level as I had been hoping. Rather price sold all the way down to 93.50, where the buyers stepped up. The DXY loves the round number levels and it shouldn’t be a surprise as we’ve seen buying in this area previously.

I am still bullish on the USD, despite what is now starting to look like a bearish chart.

There are still a number of minor support levels below us, however, if things turn ugly then we have a fair chance of selling all the way down to 92.40-92.50, which is major support at this time.