NEWS / Central Banks

Daily Technicals: Dollar sold at the opening

by Marc Spaelti

EURUSD: Euro fell to end the week low at 1.2715. Good support at 1.2700 and key level 1.2670 should hold and the pair is likely to head north once again. Initial resistance 1.2755, clearing that leaves space to recover to 1.2800 first strong resistance.

GBPUSD: Friday saw the pair trading in narrow range, strong initial resistance at 1.8945, initial support at 1.8900. A breech to the downside seems more likely, expect a move down to 1.8820, it could reach 1.8720 if a larger sell-off is seen, a low daily close will call for additional dips that could take the pair as low as 1.8600 this week at most. To the top, 1.9000 is the pivot level, a rise and daily close above it is bullish and we??™d expect the pair to reach 1.93 within a few days.

USDJPY: Maintaining a short-term bullish trend it has again reached the 116.45 top seen last week. Strong resistance here may stop the pair from rising, threat is a break of its trend-line at 116.25, triggering a fall to 115.90 or 115.60. A rise through 116.45 should ad a boost and prolong the current rise to 117.20.

USDCHF: It is under pressure this morning, falling from its high weekly close above 1.24. Currently inside old medium-term bearish trend watch the 1.2395 area closely. While underneath the pair can fall to 1.2335 easily, strong support only at 1.2300 and 1.2260. A rise through 1.24 finds resistance at 1.2430, a high daily close is bullish for a try of the 1.2550 key.

@08:30GMT UK PPI Input, Output July
@09:00GMT Euroland GDP Q2 flash estimate