Forex Market Trading May23 Preview

Forex Market Trading May23 Preview - Forex market trading may23 preview - The dollar lost more ground yesterday. The euro gained 86 against the dollar yesterday, the gbp gained 78 pips against the dollar. On the chart above you can see that the euro has formed a zero line reject woodies cci pattern. However there are a few signs of caution.

First in earlier forex market trading we had a zero line reject that failed, it didn't even cross the zero line on 15 minute chart. Second, the bollinger bands are starting to flatten, that's a sign of a possible consolidation. If this zero line fails, I expect the trend to go flat, or even reverse. My forex trading strategy for today is to enter on lower timeframe, the best would be a zero line reject, but it maybe a zero line cross too. Timeframes for entering are 1 hour, 30 minutes and 15 minutes, in order of importance.

Forex market trading yesterday saw the euro gain ground against the dollar on the statement by ECB'’s Chief Economist Otmar Issing - he suggested the ECB would further tighten policy if the economy continues to develop as expected. He also added that the Bank would not be guided by short-term developments, in response to a question on whether they would consider the recent equity declines.

The euro was pushed by Eurozone'’s trade balance yesterday - The Eurozone's trade balance unexpectedly rose into a trade surplus for March at 1.2 billion euros, compared with a deficit of 3.1 billion euros in February. Economists were expecting the deficit to remain unchanged at 3.1 billion euros.

Forex market trading more important reports for today are(all times eastern EST:

CHF Trade Balance (APR) 2:15 cons 0.40B prev 0.61B
EUR French Business Confidence Indicator (MAY)2:45 cons 107 prev 108
EUR French Production Outlook Indicator (MAY) 2:45 cons 1 prev 2
EUR French Consumer Spending s.a. (MoM) (APR) 2:50 cons 0.4% prev -0.6%
EUR French Consumer Spending (YoY) (APR) 2:50 cons 3.7% prev 3.5%
CHF UBS Consumption Indicator (APR) 4:00 prev 1.743
EUR Euro-zone Industrial New Orders s.a. (MoM) (MAR) 5:00 cons -1.0% prev 2.7%
EUR Euro-zone Industrial New Orders (YoY) (MAR) cons 5:00 prev 13.3%
JPY Tertiary Industry Index (MoM) (MAR) 19:50 cons -0.2% prev -1.5%
At 10:00am USA Fed Chairman Bernanke Speaks so be carefull.

Good trading everyone. That's all for today's forex market trading may23 preview.