Forex Signals Brief for May 26: Can Confidence Bounce Back? - Forex News by FX Leaders
Sentiment is improving

Forex Signals Brief for May 26: Can Confidence Bounce Back?

Posted Tuesday, May 26, 2020 by
Rowan Crosby • 2 min read

US Market Wrap

The week has started in quiet fashion with the US and UK taking a holiday, but traders are set to return to their desks for some top-tier data releases.

Yesterday, we did see some positive signs out of Europe with the release of the German Ifo data which is an indicator of business sentiment. The number indicated a rebound in May and that lead the DAX to jump 2.9% to its highest level since March 6, recovering nearly 38 per cent from its lows.

The data also bodes well for the EUR/USD, which has been range bonus since April.

The Data Agenda

After a holiday to start the week, the attention will be once again back on the US as they get the week underway with some key data points.

The main one of interest to us today will be US consumer confidence. We are looking at a potential increase to 88.0 for May and hopefully, it can follow the German lead from yesterday. The other number of note are new home sales. 

Earlier in European trade, we get another German consumer climate figure, but otherwise, we are looking at a thin calendar.

Later in the session, the USD/CAD will be on watch as Governor Poloz speaks.

 

Forex Signal Update

The FX Leaders Team closed one signal in the green as our NZD/USD trade pushed higher this morning.

Make sure you follow our live signals as the week will start to build from today.

 

EUR/CHF – Active Signal

The EUR/CHF is holding in a relatively tight range and we feel there is some upside potential here – particularly if price can regain 1.0600.

EUR/CHF
EUR/CHF – 240min.

 

Gold – Pending Signal

GOLD is still sitting in what looks to me to be a very bullish pattern. Despite improving sentiment, there is clearly still demand for the yellow metal.

Gold
Gold – 240min.

 

Cryptocurrency Update

BTC has fallen through the $9,000 level and for the time being, price is consolidating under that point, which is bearish price action.

There is growing evidence to suggest some big players are liquidating and that to me suggests there could be more downside ahead.

BTC
BTC – 240min.
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