Dollar continues to slide

23 May, 2017

Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day. The New Zealand dollar rose as much as 1% on the day, rising to a three-week high while the price action was a lot more subdued against the yen. Gold prices were seen rallying back to test the previous highs at 1261, while crude oil prices managed to maintain the strong momentum, with prices supported above $50 handle. Looking ahead, the economic data today includes flash manufacturing and services PMI from the eurozone and the US, due to be released by Markit. The BoE's inflation report hearings are also due today, while in the US trading session a number of Fed members are due to speak.

EURUSD intraday analysis

EURUSD (1.1249): The euro got a boost unexpectedly yesterday as the German chancellor, Angela Merkel said that the "euro was too weak" blaming the ECB's monetary policies. The euro jumped higher on the day as a result and comfortably closed above the $1.1200 handle yesterday. Immediate support is seen at 1.1200 with further upside likely to see price consolidate near the 1.1250 handle. However, a break down below 1.1200 will trigger the next support level at 1.1100 region.

GBPUSD intraday analysis

GBPUSD (1.2994): The British pound close in a doji yesterday near 1.3000 handle. A bearish close today is required for price action to push lower. There is a strong chance that the GBPUSD will signal a correction towards the long pending test of support at 1.2600. On the 4-hour chart, watch for the possible rising wedge pattern that is being formed. A breakout to the downside will signal an initial decline towards 1.2800 support. The Bank of England's inflation report hearings will be held today where Gov. Carney's comments could bring some volatility to the British pound.

XAUUSD intraday analysis

XAUUSD (1261.96): Gold prices have rallied back to test the resistance level that was formed at 1263.00 that was only tested last week. However, the 4-hour Stochastics is currently showing a lower high at this level which could indicate a downside move. Price action remains flat within 1263.00 and 1250.00 levels. On the daily chart, there is also a potential head and shoulders pattern that is likely to be still emerging with the current rally posting the right shoulder. A reversal at 1263 with a decline to 1250.00 is needed to confirm the downside in price.


Source link  
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...

China's consumer prices increase

Consumer price index in China rose 1.2% on an annualized basis in the month of April, managing to beat estimates of 1.1%...

  


Share: