NEWS / Government Ministries

Daily Technicals: Dollar at the weeks high

by Marc Spaelti

EURUSD: Whipping up and down, EURUSD fell back to strong support at 1.2570. While this holds, expect the pair to swing back into the 1.26??™-handle, ending the week neutral. Risk is to break the initial support and go for a test of the 1.2470 key support, a lower weekly close points to 1.2250 next.

GBPUSD: Cable crashed through key support at 1.8350 and fell to a low of 1.8265. Currently at 1.8300, it is in bearish territory while underneath of 1.8350 and risks to advance to 1.8140, initial support 1.8265, stronger 1.8200. In case Cable manages to retrace back above 1.8350 it should continue up to 1.8415 strong bearish resistance, a weekly close above that is bullish.

USDJPY: 114.65 support held again, the Dollar rallied strongly through 115.15 to reach 116.25. It seems a touch overbought, the 116.10 level is expected to offer strong resistance today and there is room to correct, minimum 115.50, 115.20 likely, 114.65 support is strong, medium-term trend-line at 113.95. In case the dollar remains bid and can advance through 116.10 we may move on to 116.75 key resistance.

USDCHF: 1.2385 was broken, the pair rallied to a 2-month high of 1.2450, testing the medium-term bearish trend for a first time. Key resistance a touch higher at 1.2470, a higher weekly close is bullish for 1.2650 next. While the top resists, the downside is open for a sharp fall to 1.2300, only minor support at 1.2415 and 1.2385.

@12.30GMT US Durable Goods May