NEWS / Monetary Policy

Dollar at key support levels this morning

by Marc Spaelti

EURUSD: The Euro closed at its highest level in 3 weeks and advanced to 1.2960 this morning, this is the key resistance. Suggest selling Euro here with a tight stop, expect to trade down to 1.2885 strong support, a lower daily close points to continued range-trading and further descent towards 1.2740. Alternative is an extension to 1.2995, but we need a daily close above 1.2960 to advance through 1.30, 1.3050 is first strong resistance, 1.3150 would be the first target.

GBPUSD: Cable traded up on Friday, passing bearish resistance at 1.8815 to close the week high. Currently at 1.8850, there is strong resistance at 1.8885, moving through should see us try the .8965 key resistance, a higher daily close is bullish. For now look to trade small range of 1.8810/85, a break to the downside can see it fall to 1.8590 initially and stretch last weeks low to 1.8450 later on this week.

USDJPY: The Dollar came under pressure on Friday, USDJPY returned to its key support at 111.55. Initial resistance at 111.85, while underneath there is a risk of further Dollar selling, a daily close underneath of 111.55 risks a return to 109.20. But in case the pair can retrace above 112, range-trading will continue, key resistance unchanged at 113.40.

USDCHF: This Dollar looks the most bearish of the lot, with the 3-week rising support clearly broken on Friday. For now there is strong initial support at 1.2040 and more at psychological 1.20 level, a lower daily close calls for descent towards 1.1860 or even 1.1770 this week. On top minor resistance 1.2100, strong at 1.2165, key resistance higher at 1.2240/60 unchanged.

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