NEWS / Foreign Exchange

Daily Technicals: dollar slightly softer

by Marc Spaelti

EURUSD: Only a brief dip to 1.2585, the rest of the day was spent in narrow range at high levels, 1.2665 high traded this morning in Asia. Minor bullish support 1.2630, a break will take the pair back to 1.2585, lower is possible, medium-term support at 1.2475 is key. We maintain our view that the week will close low and see very limited risk of a spike higher, strong resistance 1.2665 and 1.2700, key 1.2740.

GBPUSD: Cable has traded up to form a double-top at 1.8545. Short-term rising support at 1.8520 ??“ this range will eventually give way today and it will either move up to 1.8625ish or drop back to the 1.8350 key support, minor resistance 1.8585 on the way up, support at 1.8460 and 1.8420 on the downside.

USDJPY: 114.60/65 held well and remains the pivot for a short-term dip to 114.10 or 113.85 key support, medium-term trend-line has now reached 113.35. Minor bearish resistance at 114.95, a rise through that will call for 116.10 with 115.40 to be broken on its next test.

USDCHF: Narrow range, 1.2335 could not be bypassed, while 1.2285 bottom held. Key support remains at 1.2260 and while it holds we continue to favor Dollar longs for a rise to 1.2450/1.2500, minor resistance 1.2310, stronger at 1.2335. Should the bottom cede, the pair risks to dip to 1.2200 or even 1.2165, a low weekly close is bearish.

@09.00GMT Euroland Industrial Production April
@12:30GMT US Current Account Balance Q1
@13:45GMT U. Michigan Sentiment June preliminary