Will the US dollar reverse losses this week?

4 April, 2016

The March payrolls and ISM manufacturing data were the big events last Friday. While the NFP was mixed, the ISM manufacturing posted a strong upside surprise, but the dollar was unimpressed closing Friday's session weaker. With a new week ahead, the US dollar could be looking to regain some lost ground in the near term, which should see a pullback across most of the USD crosses.

EURUSD Daily Analysis

EURUSD (1.13): EURUSD closed Friday's session above 1.13 settling at 1.139. Price action closed with a small bodied candlestick pattern, and if today's session closes on a bearish note, we can anticipate a short-term correction lower. However, prices remain biased to the upside with the previously broken resistance at 1.13 now likely to turn into support. In the case of a dip below 1.13, 1.12 support comes into play next. To the upside, 1.147 which marks the 14th September 2015 higher close will be the next resistance level of interest.

USDJPY Daily Analysis

USDJPY (111.5): USDJPY slipped below 112.0 support on Friday closing with a strong bearish engulfing candlestick pattern which could indicate further downside. Prices are currently supported near the lows of 111.430 which was previously held on 17th March. A daily close below this level could see further downside, but in the event of a move above 112.0 USDJPY could see some of the losses being reclaimed. On the 4-hour chart, resistance can be seen at 112.0 - 112.50 levels and an upside bias will be built only on a close above this resistance level for a test to 114.35 - 114.7.

GBPUSD Daily Analysis

GBPUSD (1.42): GBPUSD closed Friday's session on a bearish note following the two doji candlesticks earlier in the week near 1.4425 resistance. Minor support at 1.42 was briefly tested on Friday, but we expect to see a further test back to this level. On the 4-hour chart, with the support level being cleared at 1.4263 - 1.4247, GBPUSD could see a continued downside move to 1.4025 - 1.40 lower support in the near term.

Gold Daily Analysis

XAUUSD (1217): Gold prices continue to drift gradually lower. Price action was bearish on Friday, but the daily chart was supported by the 50 period EMA. On the 4-hour chart, prices closed below 1230 - 1225 support/resistance which could confirm further downside. A brief retest to establish resistance at the newly broken support level would confirm the downside bias which will see Gold dip to the $1200 psychological support.


Source link  
Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...

Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...


Dollar Supported, Heading Into FOMC

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...

EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...


GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

EURUSD eyes 1.07 on a breakout below 1.10

Risk aversion resumed after the US returned from holiday with investor sentiment turning sour after a third real estate fund suspended trading after an increase in investor redemptions. Sterling slumped as expected, fueled by BoE lowering capital buffer requirements...

Gold hits 1350 as expected

Gold prices rallied early today testing the 1350 resistance as noted over the past few days. Further upside is likely to continue if price clears the 1350 handle which could keep gold testing 1371.90...

  


Share: