NEWS / Central Banks

Slight bearish-Dollar bias

by Marc Spaelti

EURUSD: It traded up to 1.2680 overnight, this is the first strong resistance and we expect the pair to remain range-bound around 1.2650, initial support 1.2610, strong support 1.2570, key support unchanged 1.2470. On top additional support 1.2700, key 1.2750, sell tops as the 1.2550/1.2750 range is likely to last the week.

GBPUSD: The day closed outside the short-term bearish trend, expect to continue rising slowly towards 1.86 by Friday, initial resistance 1.8480, strong 1.8530, key 1.8610. Initial support 1.8445, strong at 1.8410, buy dips, key resistance at 1.8350 must hold.

USDJPY: After a small bounce that did not really bypass the 115.10 level, USDJPY came under new pressure but the 114.65 support is still holding. Same scenario as yesterday, suggest selling ahead of strong initial resistance 115.15/20, a daily close above this risks 116.10. Expect the next try at 114.65 to give way for 114.30, target is the key support at 113.85.

USDCHF: 10-day trend-line was broken at 1.2360, it traded down to 1.2315. Currently on the rebound, it is back at 1.2350, strong initial resistance 1.2360, more at 1.2385. While these hold we expect to go for a test of the 1.2310 support, a break leads to 1.2260 key support, continue to trade a range of 1.2260/1.24 for a few days longer.

@09.00GMT Euroland Industrial New Orders April
@12.30GMT US Weekly Initial Claims
@14.00GMT US Leading Indicators May