Dollar strengthens on hawkish minutes

19 May, 2016

The US dollar got a boost from the Fed's minutes yesterday which has come out hawkish than expected. The euro, gold, and yen weakened against the greenback, but the sterling remained resilient. However, GBPUSD is limited in its upside at 1.46 and could see a move lower in the coming weeks. For EURUSD, USDJPY and Gold a modest pullback is likely ahead of further trend continuation.

EURUSD Daily Analysis
 
EURUSD (1.122): EURUSD slipped below the 1.130 support with a bearish candlestick following the previous two days of flat price action. A test of 1.120 cannot be ruled out, but the declines are likely to be limited in the near term. The 4-hour chart's bearish flat pattern has seen prices fall to the 127.20% Fib extension level but is supported by the lower support zone near 1.12170 - 1.120. Any upside bounces could see a move back to 1.1282, and a break above this bear flag's low could see a retest of the 1.138 - 1.140 resistance level.



USDJPY Daily Analysis
 
USDJPY (109.98): USDJPY continues to push higher, but price action is capped by the 50-day EMA. The retest of 107.955 still remains an open question. On the 4-hour chart, further bullish momentum is unlikely at the current levels with the recently broken resistance level at 109.73 - 1.9.35 likely to be tested. But a break below this resistance could see USDJPY retest the break out from the median line near 108 levels.



GBPUSD Daily Analysis
 
GBPUSD (1.457): GBPUSD posted an impressive rally yesterday testing 1.46 highs. But this level coincides with the main horizontal resistance zone and a retest of the median line on the daily chart. The lower high formed in GBPUSD could signal a move lower with 1.42 being the most ideal support level that could be tested. The main resistance is seen at 1.4635, and as long as price doesn't close above this level, GBPUSD could be pushing lower in the near term, with the first support at 1.43 ahead of a move to 1.42.



Gold Daily Analysis
 
XAUUSD (1258): Gold prices declined yesterday, and the breakout from the lower median line on the daily chart signals a move lower. However, price action is at the 1260 - 1258 support level, and we expect a modest bounce off this support. 1289 - 1290 remains a level of interest in the near term. On the 4-hour chart, we can see the price action currently attempting to hold on to the support zone at 1262 - 1258. Near term, gold could stay range bound below 1273 - 1272 resistance.


Source link  
US dollar hit by Trump's comments

The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...

Gold gives up gains

The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...

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...

  


Share: