Markets are detecting some hesitance on the part of the Fed recently and that’s dragging on the dollar.
But US interest rate outlook remains strong, just not increasingly so.
EURUSD cleared 1.1350 and then 1.1380, and is now stalling between 1.1400-40.
The surge candles as seen on daily and H4 charts are bound to retrace so watch out for earlier resistance levels that are now support.
1.2855 is still the new resistance on GBPUSD charts. While UK headlines are still pre-occupied with Brexit issues, the pound remains without direction.
Just watch out for retracement attempts back towards 1.3000. Otherwise supports at 1.2620 and 1.2500 will need to clear before a new bear trend can be called.
AUDUSD tested 73.30 earlier and may retrace back to 72.70.
But US interest rate outlook notwithstanding, we’re not seeing any significant resistance between current levels and 75 cents, except for some small offers around 73.80 cents.
Looks like our call for dollar bulls to start loading up on USDJPY longs turned out to be a not so good one. Spot is dealing 112.75; watch out for bids around 112.35 yen.
Have a good Monday and #TradeAtYourOwnRisk. Stay with #Mocaz at #RealTraderCommunity.