|Day's Range||106.07 - 106.728|
|52 Week Range||105.5580 - 115.4880|
You’re watching this week’s first Daily Trading Signals. Here’s how the interbank sentiment compares with the technical models at 8 AM GMT.
The USD/JPY has been rejecting the POC zone 106.16-30 and the price formed a V-shaped bottom. The recent USD recovery aims for 106.60 and if the price makes a 4h close above 106.60 we could see 107.20. At this point the pair is supported but for bulls to dominate 106.60 must be broken. A steep retracement trend line break suggest further up, but if the price breaks below 106.00, we could see bears dominating again and the price might turn down to 105.40 zone.
The U.S Dollar has been slightly stronger this morning. However, the Euro and Yen remain within their stronger ratios.
The pair pulled down significantly during the Friday’s session reaching towards the 1.24 level which offered a bit of support. Overall, the market is in general uptrend and pullback like this offers a good buying opportunity. If the market further breaks down, the 1.23 level and 1.21 level is going to offer maximum support. All the pullbacks are a technical move based on the recent highs and buyers will get attracted to take this market forward. …Read MoreGBP/USD
If Treasury yields continue to soar then at some point, this may make the U.S. Dollar a more attractive investment.
The US dollar has fallen significantly against the Japanese yen, breaking through a significant amount of support, which has been effective going back to this time last year. By breaking down, it looks as if we are set to go lower.
The pressure on the Greenback was fueled by a number of factors including concerns that the Trump Administration might pursue a weak dollar strategy in an effort to drive up demand for U.S. goods and services.
The pair has been bullish through the Thursday’s session as it reached the 1.25 level which is a psychologically important level. The British Pound rallied significantly during the Thursday’s session as it broke above the 1.40 level which was significantly resistive. Yesterday’s move in the market is a very positive development and should continue to rally for next few sessions reaching towards the 1.43 level.
The US dollar has drifted a bit lower against the Japanese yen again on Thursday, as we continue to see weakness in the greenback overall. It looks as if the 107.50 level above will continue to offer resistance. That’s an area that was previous support, and now has been tested to be the ceiling.
Having breached 107.00 and the 106.70 support-marks, the USDJPY seems all set to test an upward slanting trend-line support on the weekly chart, which stays around 106.00 now; however, its further south-run can be restricting by a downward slanting TL support of 105.50, which if broken could enable Bears to demand 104.20 and the 102.80 numbers. Meanwhile, an upside break of 106.70 and the 107.00 could trigger the pair’s recovery in direction to 108.00, the 108.50 and then to the 108.80 resistances. Should prices manage to rise beyond 108.80, the 109.50 and the 110.20 may please the buyers. ...
The Euro gained dramatically versus the U.S Dollar, and The Yen continues to test stronger values.
The market was very noisy during the trading session on Wednesday, as it was for all pairs involving US dollar. The pair initially went down to test the support at 1.23 level but then shot higher at once reaching towards the 1.24 level. The pair is now aiming to reach towards its next target of 1.25 level which is psychologically important level.
The US dollar fell against the Japanese yen during the trading on Tuesday, but then bounced to retest the 107.50 level. That’s an area that had previously been supportive, and of course brought in more sellers. This is a negative turn of events.
AUDUSD’s gradual recovery from 0.7758 recently reversed from 0.7890 horizontal-line, which in-turn signals the pair’s pullback to 0.7850 TL support. Should the pair break 0.7850, the 0.7830 and the 0.7790 are likely intermediate halts that it can avail before re-testing the 0.7760-55 support-zone. Moreover, pair’s declines below 0.7755 can make it vulnerable to rest on the 61.8% FE level of 0.7710. Meanwhile, break of 0.7890 could escalate the pair’s up-moves to 0.7910 and then to the 0.7955-60 horizontal-region. If at all Bulls conquer the 0.7960, the 0.8000 round-figure and 0. ...
Gold continues to be pushed higher as risk adverse traders may be adding to the precious metal’s climb.
Euro/Dollar’s short and long term indicators are mostly neutral, but the mid term shows mixed results. The close to 25% long interbank is bullish. The Cable has 6 neutrals in both the short and long terms.
Ahead of the CPI data from the US, we do have a two sell signals attached to the American Dollar. First one is direct and its sell on the USDJPY and the second one is indirect and its a buy signal on the Gold (driven mostly by the weaker USD). Yesterday, USDJPY broke super important support on the 108.3 and today, the price is making lower lows and lower highs, which is a confirmation of the bearish intentions and decreases the chance for a false breakout.
The pair is now expected to go higher towards the 1.24 level and then towards 1.25 level eventually from here which is a large, round, psychologically significant level.The pair has massive support around the 1.21 level underneath which is unlikely to be broken. The British Pound initially rallied higher during the Tuesday’s session but got enough resistance higher and pulled back. The 1.40 level above is going to be important and also a resistance barrier.
The US dollar has fallen hard against the Japanese yen during trading on Tuesday, testing the bottom of a major support level. I believe that the market is likely to find buyers in this area though, and it certainly looks as if we are trying to stabilize as I record this.