NEWS / Foreign Exchange

Daily Technicals: Dollar correction may end here

by Marc Spaelti

EURUSD: The Dollar only rose to 1.2810 and reversed to fall to 1.2900, its lowest level in nearly 2 weeks. It seems that the Dollars correction is running out, while above 1.2800, we tend to look the other way, an attempt at 1.30 may follow. For now strong resistance 1.2900, and again at 1.2960, expect to develop momentum as we reach higher levels, once 1.30 is breeched we can advance to 1.3150 quickly. To the downside we have an initial support at 1.2850, pivot at 1.2800, a breech should trigger a re-test of the 1.2700/30 key support area.

GBPUSD: In a fairly volatile market, Cable tried the upside near 1.88, then the downside at 1.8710, just to turn once more and rise to 1.8875. 1.8775 is pivot to watch, while above there is a chance to move on towards 1.90 this week, strong resistance on the way up at 1.8885, initial resistance 1.8845. Minor support 1.8810, pivot 1.8775, a break call for further consolidation between 1.86 and 1.88.

USDJPY: The 111.55 level is still holding, but what looked like a slow rising supportive trend was clearly broken overnight. A break of the 111.55 key can do serious damage to the US Dollar, a fall to 109.00ish should follow soon. Strong initial resistance at 112.00 and more at 112.35, key unchanged above 113. Next support 111.10 minor, 110.50 strong.

USDCHF: Dollar correction seems to falter. This morning we have again dipped underneath of the rising support at 1.2110, this is now the initial resistance and we are at high risk of falling to 1.2000 or more. Initial support 1.2065, next 1.2020, key support 1.1945. A daily close above 1.2120 keeps the pair in consolidation mode, next resistance 1.2175, key at 1.2240/60.

@07:55GMT German Unemployment May
@09:00GMT Euroland Industrial / Consumer Confidence May
@09:30GMT Swiss KOF Business Climate, Leading Indicator May
@09:30GMT UK Consumer Confidence May
@14:00GMT US Chicago PMI May
@18:00GMT US FED Minutes May FOMC meeting