US dollar seen posting gains, but remains questionable

12 August, 2016

The US dollar index managed to close bullish yesterday, forming an inside bar in the process. A break out from this level could signal further gains or declines, with the bias staying neutral for the moment. Gold prices were seen retesting the $1350 handle, but failure to keep the gains saw gold prices closing bearish. Watch for 1327.50 to the downside. EURUSD has also turned bearish yesterday, and 1.110 will be essential as a break down below 1.110 could signal further declines to 1.10 support.

EURUSD Daily Analysis

EURUSD (1.113): EURUSD was bearish yesterday following the previous day's gains. The reversal which was short of retesting 1.120 resistance saw price close at 1.1137. The further downside could be expected with 1.110 now likely to act as support. A break below 1.110 support could signal further declines to 1.10. On the 4-hour chart price action is seen breaking down from the rising median line. A retest to 1.1150 is possible. If resistance is established here we can anticipate EURUSD to slide to 1.110 and eventually to break down to 1.10 support.

USDJPY Daily Analysis

USDJPY (102.04): USDJPY is seen retesting 102 resistance level following a higher low that was formed yesterday. The bullish divergence on the daily chart could signal a longer term correction towards 108, but near-term resistance levels at 104 and 106 will need to be cleared. On the 4-hour chart, Price action is seen currently trading above 102, but the support zone near 101.55 - 102.00 could remain in play. As long as USDJPY does not break down below 101.55, the bias remains to the upside for a test to 104.00.

GBPUSD Daily Analysis

GBPUSD (1.2960): GBPUSD closed below 1.30, and the bearish follow through yesterday which comes after the doji close signals further weakness that could persist. On the 4-hour chart, however, we notice the Stochastics forming a higher low against the current lower low in price, which could signify a near-term correction. Still, 1.30 needs to be cleared which could act as resistance for any hopes of a correction. Above 1.30, GBPUSD could be seen testing 1.32 - 1.317 resistance.

Gold Daily Analysis

XAUUSD (1338.42): Gold prices retested 1347 - 1350 handle yesterday, but prices closed bearish at 1338.85. We could, therefore, expect to see the declines coming through in the near term. Support at 1327.50 will be an important level of note, and bounce off this level could signal gold prices to move in a sideways pattern between 1340 resistance. Only a confirmed break below 1327.50 will signal further downside for prices to test 1315 - 1300 support.


Source link  
Dollar looking to recover from the weekly declines

Lack of any clear catalyst kept the markets drifting. The scheduled health-care vote which was due...

Investors turn to Yellen speech

The British pound settled after briefly slipping from the highs of 1.250 to post session lows at 1.2423 earlier...

U.S. dollar slips as investors scale back

The U.S. dollar index fell below the 100.00 handle yesterday as investors scaled back the Trump Trade...


USD continued to weaken yesterday

Price consolidated yesterday as directional catalysts have subsided in the wake of the ECB/ FOMC meetings. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50%...

Short covering rally continues

Short covering rally continues. Local resistance at the January high of 1.0828 is the first challenge. Above their puts the focus on the bigger technical level of 1.0975 which is the 50% Fibonacci retracement from last year’s high. We also have the completion...

Dutch exit polls bodes well for EURUSD

The initial exit polls from various sources have clearly put the Dutch incumbent Prime Minster Mark Rutte's party in the lead against his radical opponent, Geert Wilders...


Fed and Dutch set the tone for a busy day

The FOMC's interest rate decision today will be closely watched as traders brace for a third rate hike in just under two years, since December 2015. The short term Fed funds rates are expected to rise to 0.75%...

U.S. dollar wavers, PPI data coming up

Trading was flat with the currencies seen giving back the gains made from Friday. The lack of any major events also contributed in part to the flat trading. Traders will be looking forward to the first part of a busy week starting tomorrow with the Fed's rate hike looming...

Draghi's speech stands out amid a quiet trading session

The single currency is seen extending the gains from Friday's rally even as the ECB president Mario Draghi is slated to speak later today...

  


Share: