Forex news 5/6

EUR/USD lost 0.4% to a two-week low of 1.0800. Official data showed that the eurozone's retail sales declined 11.2% on month in March (-10.6% expected), and German factory orders sank 15.6% (-10.0% expected). Meanwhile, the European Commission forecast a 7.7% decline in 2020 GDP, before a 6.3% rebound in 2021.
GBP/USD dropped 0.9% to 1.2327. The Markit U.K. Construction PMI slumped to 8.2 in April (21.7 expected) from 39.3 in March.
USD/JPY dipped 0.4% to 106.22, the lowest level since mid-March.
Commodity-linked currencies were broadly lower against the greenback. AUD/USD slid 0.7% to 0.6389 and NZD/USD fell 0.8% to 0.6005, while USD/CAD climbed 0.8% to 1.4161.

USD/JPY Intraday: Rebound. The pair has crossed above the upper boundary of a bearish channel drawn from May 5 turning the intraday outlook as bullish. In fact, it has returned to levels above both 20-period and 50-period moving averages. And the relative strength index is well directed in the 60s, showing upward momentum for the pair. Trading above the key support at 106.00, the pair should proceed toward 106.40 and 106.65 on the upside.

EUR/USD Intraday: Capped by a negative trend line. The pair remains capped by a bearish trend line drawn from May 5. Meanwhile, it stays below the descending 20-period moving average, and the relative strength index has not yet recovered the neutrality level of 50 indicating a lack of upward momentum for the pair. Unless the key resistance at 1.0620 is surpassed, the pair is expected to sink toward 1.0780 and 1.0760 on the downside.

AUD/USD Intraday: Downside prevails. The pair edged lower along the lower Bollinger band. The downward momentum is further reinforced by declining 20-period and 50-period moving averages. Hence, as long as 0.6420 is not surpassed, we anticipate a further downside with targets at 0.6365 and 0.6335 in extension. Alternatively, a break above 0.6420 would trigger a technical rebound with 0.6450 and 0.6475 as targets.