FOREX NEWS: BANK HOLIDAYS INCREASE THE CHANCES OF SLOW PRICE ACTIONEUR/USD
Forex News: A weaker than forecast value of the German Ifo Business Climate combined with an increased number of New Home Sales in the United States created bearish price action Friday and took the pair below 1.3650 support.Technical Outlook
The European Parliamentary Elections which took place Sunday are likely to influence today’s price behavior but the direction or the extent of their impact is hard to determine. The Relative Strength Index on a Daily chart is showing a mildly oversold condition and this increases the chance of moves north. If this is the case, 1.3650 will most likely act as resistance, followed by 1.3700.Fundamental Outlook
Today US Banks will be closed due to Memorial Day and no economic data will be released. As for the Euro, the only event that can affect it is the speech of ECB President Mario Draghi. He is scheduled to speak at 8:00 am GMT in Portugal, at the European Central Bank Forum. Strong moves will be generated, especially if the President will speak about ECB’s next step regarding monetary policy.GBP/USD
Both Thursday and Friday were bearish days and we saw the pair drop all the way from 1.6920 to 1.6820. Price traveled without whipsaws until it finally reached support and volatility subsided due to the end of the trading week.Technical Outlook
Price showed some rejection off 1.6820 support but it looks like the bulls’ strength starts to fade away from a medium term perspective (four hour chart). The Relative Strength Index is not indicating an oversold condition so a break of 1.6820 is possible today but on the other hand, we might experience a slow day due to lack of economic releases.Fundamental Outlook
Banks in the United Kingdom will be closed today, celebrating Spring Bank Holiday; no economic releases are scheduled for the Pound. Volatility might be thin and irregular movement is a distinct possibility.