USD could see a short term recovery

18 March, 2016

Following the two days of declines, the US Dollar is likely to see a short-term pullback in prices. The bias still remains to the downside and could potentially seek more declines unless there are signs of a reversal in prices. Most of the USD crosses are currently trading at resistance levels, which could confirm the short-term pullbacks in prices.

EURUSD Daily Analysis

EURUSD (1.13): EURUSD is trading near the upper range of the resistance zone between 1.120 and 1.130 on the daily chart, testing the previous highs near this level made around mid-February 2016. A break above 1.130 is essential to see EURUSD post higher gains towards 1.1475 region, which marks a test of resistance which was established around mid-October 2015. To the downside, failure to close above 1.13 could see a test back to the lower levels of 1.12 - 1.119 region. EURUSD is likely to see ranging price action between 1.1335 and 1.12 in the near term with the potential to breakout in either direction following the breach of the resistance or the support level.

USDJPY Daily Analysis

USDJPY (111.5): USDJPY broke below the 112.0 support yesterday to test the lows at 110.672. Any attempts to push higher could see this level attempt to establish resistance, which could open up the downside. However, there is strong support that has formed near the 111.31 levels which could see price attempt to push higher. Below 111.31, the next target comes in at 109.75. Overall, prices remain bearish with the hidden bearish divergence in place. A possible bullish divergence near the current levels could possibly indicate a move to the upside, but only on a close above 112.50 which could target the resistance at 114.7 - 114.35 and eventually to 117.25 - 117.0.

GBPUSD Daily Analysis

GBPUSD (1.44): GBPUSD has reversed near the 1.42 support and closed with two days of strong gains. Price action is, however, still weak to the upside with a test back to lower support likely which now comes in at 1.4263 - 1.42475. The 4-hour chart currently shows a doji and the resulting candlesticks forming inside bars within this doji. A lower close here and below 1.4437 could see GBPUSD decline to 1.4263 - 1.4247 to establish support ahead of targeting the next resistance near 1.4635

Gold Daily Analysis

XAUUSD (1262: Gold prices remain flat following the reversal back to the 1250 handle. While prices briefly tested the highs of 1265, the upside remains limited unless there is a break above the previous highs of 1275. The downside, therefore, is back to the $1250 support initially followed by a decline to $1200 lower support. The rising wedge pattern on the daily chart continues to remain intact but could be validated if Gold jumps above 1275 with closing prices.


Source link  
Risk off sentiment sends gold higher

Investors continued to shun risk assets on Thursday amid a mix of global themes. The stalemate in the US and China talks alongside rumors that the US...

Market Reaction As Higher Tariffs Kick In

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...

USD Strengthens On ADP Payrolls

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...


BoC Holds Rates Steady

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...

Markets Open To A Quiet Trading Day

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...

Dollar Muted As Equities Rally Ease Off

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....


Market Risk Appetite Wanes

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared...

USD retreats as factory orders weaken

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive...

Unemployment Steady, USD Firms

The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period...

  


Share it on:   or