Did the Euro just bottom?
FX Rundown

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Euro (June)

Session close:Settled at 1.1795

Fundamentals:Volume was decent today given the German holiday. Late Friday, Italys Five Star Movement and the League agreed on a coalition to bring a populist government to Italy. They are calling for large spending increases; massive tax cuts, welfare, pension reforms and more. Italian stocks lost 1.5% on the session and are down 3% over the last month. Italian 10-years gained 15 basis points on the session on fears that the government will not be able to meet payments. While this weakened the Euro, the Dollar also strengthened on news that the U.S and China trade war is on hold for now. The Euro traded to a new low of 1.17395 and tested major three-star support but has pared all loses back to unchanged on the session. This morning, Chicago Fed National Activity came in better than expected. Fed President Bostic did not update his stance on the path of rates but maintained that the U.S is close to meeting the Feds employment and inflation goals. Fed President Harker pointed to two and maybe three more hikes this year if inflation continues to firm, however, there was not much of a reaction and he is not a voting member this year. Fed President Kashkari speaks at 4:30 pm CT, he is a dovish view at the Fed but not a voting member this year.

Technicals:Today was the session we have been waiting for in the Euro; major three-star support at 1.1735 was achieved. Furthermore, the Dollar Index neared and failed at its major three-star resistance at 94.00-94.25 with a high of 93.965. We are now Bullish in Bias, the momentum feels to have turned and the downside feels exhausted; if we are not going to take a shot long now, then, when would we? First resistance comes in at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Yen (June)

Session close:Settled at .9015

Fundamentals:The Yen posted another losing session and dipped its head below .9000 for much of the early morning before paring some losses. Trade Balance data Sunday night was a positive but comes on the heels of a string of poor reads. The real weight came on Dollar strength after a trade war between the U.S and China has been averted for now; this took some risk premium out of the safe-haven currency, however, U.S Treasuries and Gold traded much better from overnight lows. Also, Japans government approved a change made in the policy statement by the Bank of Japan in their recent quarterly report; they removed a time-frame to achieve its inflation target. BoJ Core CPI data is due at midnight CT.

Technicals:We have maintained a slight Bearish Bias in the Yen, pointing to such as long as the currency remains below the 200-day moving average which comes in today at .9168. Our target to the downside is ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels

Aussie (June)

Session close:Settled at .7571

Fundamentals:The Aussie was one of the biggest beneficiaries on the currency side with the reduction in trade fears. It gained 1% today and saw support from the metals and energy sectors as well after Treasury Secretary Mnuchin said that the U.S and China have put the trade war on hold and China will ramp up buying of U.S agricultural and energy products. This presented an opportunity to go long Sunday night with the idea of a relief rally for the Aussie in sight. There is no data tonight and we look to Westpac Consumer Sentiment and Construction data tomorrow evening.

Technicals:We did introduce a slight Bearish Bias on our last FX Rundown on Thursday evening after a series of lower highs, however, we specifically said that we must see a close below .7470 in order to confirm this. Fridays settlement was .7511. In fact, Sunday nights open became a true buying opportunity given the fundamental news. Now though, price action is out above first key resistance and momentum should be able to carry it ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels

Canadian (June)

Session close:Settled at .7811

Fundamentals:Today was Victoria Day, a banking holiday in Canada. Still the currency notched a solid session pushing gains to 0.75% into the electronic session. The Canadian was late to the party but the buyers stepped up after 10:00 am CT when the price of Crude and Gasoline began to rip higher. Price action plummeted on Friday on a horrendous Core Retail Sales read that came in at -0.2% versus +0.5% expected. Core excludes autos while the headline read actually doubled the 0.3% expectations. CPI was an unenthusiastic number. Without any news on NAFTA ahead of the weekend, traders were quick to hit the sell button on the data. Tomorrow, Wholesale Sales is due at 7:30 am CT. Now that the U.S and China trade talks have take a positive turn for the near but foreseeable futures, more bandwidth can be applied to NAFTA ahead of nearing deadlines.

Technicals:The Canadian struggled to hold the .7790 pivot on Friday, but with price action back above there today, we remain slightly Bullish in Bias. First key resistance comes in at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.