The US dollar was bearish against most of its major pairs on Tuesday, with the exception of JPY. On the financial data breach, Housing Starts dropped to 891K in the month of April (expected 900K) from a revised 1.276K in March. On Wednesday, the Mortgage Bank Association’s mortgage application data is expected for the week ending May 15. Finally, the Federal Open Market Committee (FOMC) is expected to hold a meeting dossier. Euro was bearish against most of its largest pairs with the exception of CHF, JPY and USD. In Europe, the UK’s National Statistics Office has reported an unemployment rate for the three months to March of 3.9% (against 4.3% expected). ZEW survey results from May have been released for Germany (current situation of -93.5 vs -87.6; investor confidence of 51.0 vs 28.2 in April).
The Australian dollar was bullish against most of its largest pairs with the exception of NZD and GBP.
The dollar index fell 0.25 per cent to 99,419 as the day range was 99,230 – 99,731 compared to 99,580 – 100,467 in the previous session.
Using the “technical insight” research tool under the Market Analysis tab, I searched for interesting candlestick and bar patterns, and some USD / CAD and EUR / USD price gaps were identified, showing USD weakness following today’s fall in the dollar index.
EUR / USD confirmed a bullish gap. Holes usually represent important areas of support or resistance. Holes give an indication of financial instruments SHORT-TERM outlook.
Here is a bearish gap in USD / CAD