After peeking to 97.31 today, the greenback went back to comatose mood as the Index plunged 96.94 low, and hourly chart behavior suggests further dips. Yesterday US data recorded a neutral stance, not convincing market expectations which left the Index within weekly range, down below 97 level. FOMC member Williams crossed wires today stressing that increasing rate is a must to coop with the market running hot which should have pushed the Index higher, but Trump still succeed to tank US dollar with recent and yesterday's attack on NATO and candidate Lieberman withdraw-ed his name being FBI deputy yesterday.
As a result, rivals currencies and gold taking advantage of weaker US dollar. Greenback has one last chance this week to redeem itself as US releases major data below:
1- USD- Core Durable Goods Orders m/m + Prelim GDP q/q + Durable Goods Orders m/m.
Technical Overview for GBP/USD , EUR/USD , USD/JPY , Gold
GBP/USD
Trend: Bullish / Sideways
Resistance levels: R1 1.2965, R2 1.3035, R3 1.3120 (D1)
Support levels: S1 1.2900, S2 1.2834, S3 1.2790. (D1)
Comment: The market is bullish and a breakout push over last week's high could spark a climbing advance to 1.3120. The rising congestion pattern suggests any dips should stabilize along 12950- and likely use any congestion days to build a staging level for rallies. A close under 1.2882* is the key to signal a reversing turnover back to lower levels, likely reaching under 1.2790.
EUR/USD
Trend: Bullish Sideways
Resistance levels: R1 1.1250, R2 1.1287, R3 1.1328
Support levels: S1 1.1195, S2 1.1157, S3 1.1100
Comment: Overall the market is bullish and holding corrections in tight congestion over yesterday's low will hint for a return to rallies to 11300. A roll off through yesterday's low could trigger retracement selloffs for 2-3 days. However, a close under 1.1107* is needed for a peaking turn into a correction phase down to 1.1031*.
USD/JPY
Trend: Bearish / Sideways
Resistance levels: R1 112.60, R2 11290, R3 113.85
Support levels: S1 110.80, S2 110.20, S3 1.0950
Comment: The market is in a correction phase, backing off from the 110.20* objective / resistance and may yet inject selling pressures on trade. A close under 111.60 * will encourage retracements to 112.60*. Current near term action remains ready for a multi-day drop to 112.60*. Another rebound from under 111.78 hints for some positive trade, but closes over 110 and 110.20* are needed to rekindle bull trending moves.
Gold
Trend : Bullish Sideways
Resistance levels: R1 1259.60, R2 1265, R4 1274, R4 1280+
Support levels: S1 1256.50, S2 1250, S3 1246, S4 1234
Comment: The short term trend is up and bounce from just over 1246.50* is prompting rallies to stage another challenge of 1265.60* resistance. A close over 126560* projects a drive into the 1280-1290 zone. A close under 124650* is needed to secure a short term turnover and project retracements to 1234.50-.
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