Chart of the week

The last high impact news release for the FOREX market will be released tomorrow May 30, 2014 at 8:30 AM EST when CA GDP will be released. The forecast number is 0.1% (previous release 0.2%.

Tomorrow is also the last trading day of the week and month and this does not make it a great trading environment but if we should get a considerable deviation we can see a lot of volatility coming in. 

I will only look if we the deviation is:

1. on the positive side, greater than the forecast number of 0.1% and previous released # of 0.2% for a BUY of CAD

2. on the negative side, less than the forecast for a SELL of CAD

Here are the charts I will be looking at tomorrow and the key areas of support and resistance.

The currency pairs below have the highest odds of follow through.

1. USD/CAD: a break of support at 1.0814 can send it lower into 1.0736 area which would be in line with the already set downtrend.

2. GBP/CAD due to the selling pressure this currency pair can continue lower in line with the strong selling pressure set in motion 6 days ago.

3. CAD/JPY after forming a double bottom at the beginning of the year (2014) the currency pair has formed a higher level of support above 92.00. On positive GDP numbers tomorrow a break of 94.00 is likely to occur. Target area is 94.80 (fulcrum area)

For stop loss areas I will pick the support levels on the 15 min chart at the time of the release for the long position in CAD/JPY and resistance areas on the 15 min chart for the other two above mentioned trades. 

Happy Trading,

Anka Metcalf

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