USD index is approaching its resistance at 7.055(61.8% Fibonacci extension, horizontal swing high resistance) where it is expected to reverse down to its support at 7.006(61.8% Fibonacci extension, horizontal swing low support, 61.8% Fibonacci retracement).
Stochastic (89, 5, 3) is approaching its resistance at 96% where a corresponding reversal is expected.
Looking at the DXY price is approaching the key lows around 97.30. If price tests this
area we could see some weakness re-enter the market. Recently the USD has shrugged
off recent poor data showing some buyers are still willing to prop the USD up.
However, we don't expect this to last as long as price can reject the key lows.
GBPUSD remains at the key demand zone, The 4hr timeframe is forming an inverse head
and shoulders pattern with the neckline sitting at 1.2748. If price breaks above and closes
above this level we could expect the price to continue higher.
In this video update, we take a look at USDCAD as the price has broken through longer-term trendline support.
Recently we saw USD weakness come into play and the Canadian Dollar benefitted massively. We expect this
decline to continue and a re-test of 1.3300 will be ideal in order to look for further shorting opportunities.
We recently discussed a long opportunity on OIL and as prices push higher we
could look to buy the Norwegian Krona. The USDNOK has formed a lower low on
the daily timeframe and could head towards the key weekly demand zone.
We will be looking for retracements into key resistance zone for short opportunities.
In this video update, we discuss the two scenarios ahead of this meeting and what could
happen if the Fed discuss further cuts in the future or if they downplay the need to cut rates going forward.
Inflationary data suggest a cut is likely but will FED chair Powell want to open the flood gates for the USD bears.
We are not so sure...
The USD Index is currently testing the key double top neckline and 38.2 fib. We expected
the price to test reject this zone from a technical point of view and if the daily chart
closes below this level we could see a continued sell-off. However, the FOMC is set to
announce rates and all eyes will be on the Fed's next steps. If they are dovish and mention
Yesterday we spoke about the USD remaining bearish and despite our overall view remaining the same,
the retail sales data has driven the USD Index back above the key 97.30 resistance. We may see another
rally back into the $98.00 highs where price could form a triple top pattern before breaking lower.
The retail sales for the month of may recorded an increase from...
Gold has recently tested the $1350.00 resistance and is currently rejected.
The recent CoT reports highlighted an increase in short contracts if price
closed below this key resistance we could see a short-term fall in price.
EURUSD is currently consolidating on the 4hr timeframe. With our USD short bias,
we expect this market to continue to rise. We will be looking for a breakout of the trendline
resistance before looking for long opportunities on this pair.
In this video update, we take a look at NZDUSD as we expect the price to test the 0.6700 resistance.
The CoT reports highlighted an increase in long contracts this week showing us the commercials are happy
to buy at these levels. The 4hr timeframe has highlighted a minor demand zone around 0.6600 where the
price could find buyers.
USDCAD has remained in the range for some time now as USD remains weak and so does CAD.
The range is capped by the key low and the key high and if the price remains in the range we can
expect to see the highs tested again. If the USD index breaks the weekly trendline however
we could see a break of the range lower and move back to 1.3300.
EURUSD is the inverse of the USD Index, and with price finding resistance, EURUSD has
found support at 1.1126. The daily highs at 1.1215 will need to be broken and closed above
before seeing sustained buying re-enter the market. The USD falling will likely see a change in
trend here. Wait for the break and re-test of these highs for further long opportunities.
Last week we looked at the USD heading to the key highs before falling again. The US
consumer sentiment missed expectations last week and frightened investors into thinking
the Fed may have to take action. The key daily lows currently sit at $97.50, a break and close
below the lows we will see USD drop to the weekly trendline support.
In this video update, we are taking a look at NZDUSD as the price is breaking into new highs on the daily
timeframe. Now that price is breaking higher we can look for potential add in trades on the lower timeframes.
We already hold a position on the daily timeframe from the initial bullish engulfing candle. We are expecting
price to test the April highs around 0.6700.
The DXY has started to fall again as the US consumer price index fell short of expectations.
This move has been highly anticipated and we could start to see a shift in USD sentiment
if we break the current daily lows at 97.55. A close below these lows will suggest
that the USD could continue to fall further.
By Andria Pichidi - May 30, 2019
The USDIndex slipped slightly following the mix of data, where Q1 GDP came in slightly better than consensus, jobless claims were slightly higher, and the trade deficit was wider than expected. EURUSD edged over 1.1140 from 1.1135, while USDJPY was fractionally lower at 109.65 from over 109.70. Equity futures continue to indicate...