13 January, 2017
President Elect Trump’s first press conference after his victory in the US presidential election, was held yesterday around at 16:00 GMT. It has caused great volatility to the dollar and the markets.
Before the start of the press conference, the dollar index surged from a support line at 102.00, testing the resistance at 103.00, reaching the intra-day high of 102.955.
Nevertheless, as soon as Trump’s statement started, a sell-off of the dollar has been triggered.
Trump talked about Russia’s hacking of the Democratic Party, his arrangement for his business, and the attempt to build a wall between the US and Mexican border.
During his statement, the dollar index plunged 171 points, from the 1-week high of 102.95, to a 4-week low of 101.24. breaking the support line at 102.00.
Thursday 12th Jan, the dollar index has kept on falling, further touching the next significant support line at 101.00, reaching a new 4-week low of 100.78 and held.
The volatility of the dollar index in two trading sessions has reached 217 points, the biggest since mid-December.
AUDUSD has rallied since January 3rd after testing the major support line at 0.7150.
Yesterday the bullish momentum was strengthened, as a result of the weakening of the dollar, breaking the near term major resistance level at 0.7400.
Yet the price is currently trading below the long term major resistance level at 0.7500, the selling pressure is heavy above the level. The Aussie bullish momentum is likely to be restrained at this level.
The 4 hourly and the daily Stochastic Oscillators are both around 90, suggesting a retracement.
The resistance level is at 0.7500, followed by 0.7520 and 0.7550.
The support line is at 0.7470, followed by 0.7450 and 0.7430.
Keep an eye on the US initial jobless claims, to be released at 13:30 GMT, as it will likely influence the strength of the dollar and dollar crosses.
On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...
This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...
Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways...
The UK's Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May's latest softer Brexit proposals...
The markets remain subdued after yesterday's 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump...
The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00...
The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached...
Risk on sentiment returned briefly yesterday as markets retraced some of Mondayâ€™s selloff but sentiment in Asia has declined overnight. The PBOC cut...
Stock markets fell hard yesterday as trade tensions deepened and the consequences of such action has investors worried. US Company Harley Davidson...