Overall, the major pairs found some momentum during
the Asian session. The aussie has run the most by gaining nearly 40
while the cad has refused to move in either direction. Later, the
Australian central bank will be releasing their interest rate
statement, which is expected to hike rates to 3.50 percent.
Dollar Index Technical View:
Daily chart trend: Short. Main price points: 75.00. Looking for: Ending diagonal
Prices
on the dollar index daily chart are threatening the upper line of an
ending diagonal, where a break-out will confirm that the bottom is in
place. In this case a retracement into the red wave IV area will be
expected, while the current lows around the 75.00 zone must hold.
The RSI indicator is showing a bullish divergence, which also indicates a change in trend direction.
The euro
(Eur/Usd 1.4794) has found support from the neutral swing point at
1.4765 during the overnight session. The pair is heading towards the R1
swing level at 1.4845 which is also where the 20 day moving average is
located at. This is also in the same area that the pair has topped out
at during the past five days.
The pound (Gbp/Usd
1.6393) found support at the 100 day moving average and has moved
higher. The pair has spent the session trading around the neutral swing
point at 1.6400. The next immediate resistance level is the high of the
previous day at 1.6480.
The aussie (Aud/Usd
0.9076) which will release their new interest rate later today has been
steadily climbing since the new session started. The pair opened at
0.9038 and is currently on the way to test the 20 day moving average
near the 0.9135 area.
The cad (Usd/Cad 1.0766)
has been trading below the neutral swing point at 1.0785, finding it to
be resistance. Meanwhile, the pair used the 50 day moving average at
1.0705 as support during the previous day. Heavy resistance for the
pair will be seen at the 1.0880 level.
The swissy (Usd/Chf
1.0208) is using the 20 day moving average as support during the Asian
session. Below that, the pair will find more support at the 1.0150
area. Meanwhile, resistance is firmly placed at 1.0290.
The yen (Usd/Jpy
90.30) spent the day struggling with the 20 day moving average at
90.50. This area has been an important swing point in the past. Support
for the pair was seen at 89.50 while resistance can be seen at the 50
day moving average at 91.05.
