After strong gains, dollar could be at a risk of a pullback

21 November, 2016

The US dollar index posted one of its strongest gains having shown little to no pullback in the rally that saw the dollar index rise above the 100 psychological level. With a slow and short trading week ahead for the US and the FOMC and durable goods orders being the two main important economic releases of note, the dollar could be seen posting a near-term pull back. Initial support is seen at 99.00.

EURUSD Intra-day Analysis

EURUSD (1.0601): The euro closed on Friday below 1.0600 support level, trading near the lows of early December 2015. The single currency fell sharply from 1.1100 in early November and posted one of the longest losing streaks, falling by nearly 4.2% in a span of 9 consecutive days. As price trades near 1.0600, the risks remain equally balanced. A convincing bullish close above 1.0600 on the daily session could signal a near-term correction, but a continued decline will see EURUSD fall towards 1.0500 support extending the declines further. The Stochastics on the daily chart remains strongly in the oversold level currently.

GBPUSD Intra-day Analysis

GBPUSD (1.2335): GBPUSD has been closing bearish for the past five daily sessions although the pace of declines has been moderate. After prices remain range bound within 1.2400 - 1.2500, GBPUSD closed below the lower range on Friday. This could keep the cable under pressure as the price is likely to slide towards the next support seen at 1.2250 - 1.2224. In the near term, a pullback to retest 1.2400 for resistance will confirm the move to the downside.

USDJPYIntra-day Analysis

EURUSD (111.08): USDJPY is trading near a 7-month high after a strong bullish close on Friday saw prices breaking above the 110.00 resistance level. Minor support is seen forming near 109.76 - 109.50 which should keep the prices supported to the upside. However, a breakdown below this support could signal the start of a correction as the dollar could slip towards 105.50 support level. The Stochastics remains at the overbought level, but watch for price to remain consolidated above 110.00 for the near term.


Source link  
Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...


EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...


US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

Markets brace for UK Super Thursday

The Bank of England meeting, industrial and manufacturing production numbers and fresh inflation forecasts...

  


Share: