Dollar weakens on US data miss

Dollar weakens on US data miss

US dollar fell to the session lows at 110.54 against yen; 1.1242 against Euro and 1.2880 vs British pound after missed forecasts.

Chicago PMI came at 55.2 in May well below forecast at 57.0 and Apr release at 58.3, while Pending home sales fell by 1.3% in April, below downward-revised Mar figure at 90.9% and forecast at 0.5%.

USDJPY is in the second day in red and showing increasing pressure on key supports at 110.23 (18 May low) and 110.00 (daily cloud base).

The Euro accelerated higher after pivotal 1.1200 resistance zone was broken, supported by weaker dollar and retraced the largest part of 1.1268/1.1109 pullback.

Cable was highly volatile on Wednesday and accelerated from session low and repeated downside rejection at 1.2870 zone, where near-term base is forming. The pair is now focusing pivotal barriers at 1.2910/20 for confirmation of reversal on sustained break higher.

US Crude oil is in strong bearish acceleration on Wednesday and generated strong bearish signal on break below former correction low at $48.16, to crack next key support at $47.86 (daily Kijun-sen) in extension.

Completion of bearish continuation pattern signals further weakness on break below Kijun-sen support, which may extend towards $46.89 (Fibo 61.8% of $43.74/$51.98).

Oil price is also on track for the second consecutive monthly close in red that maintains growing bearish pressure, also boosted by oversupply concerns.