US consumer confidence increased again in October after rising in September.
The dollar firmed up because of this and is staying firm after China’s PMI measure for BOTH factory and services sector posted lower-than-expected declines.
Does this mean the dollar train has arrived?
Maybe for some pairs.
For example, EURUSD could very well drop below order clusters around 1.1325 tonight but it’s stalling right now, giving scalpers a chance to do EUR short trades above 1.1380 (yesterday’s pivot).
GBPUSD stopped ranging and dropped below weak order clusters between 1.2730-1.2750, and is now ranging tightly above 1.2700.
We’re not seeing any change in the long dollar view here, but scalpers may be able to pick up more GBP shorts on retracements back to 1.2750 dollars.
Aussie is banging on the 71 US cent resistance, making some progress but not really closing convincingly above that level.
The weak China PMIs should be AUD-negative but looking at the way AUD is behaving, we’re going to wait and look out for the REAL direction.
USDJPY stopped ranging around 112.40 and is making a healthy run for previously-strong resistance at 113.40 yen.
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