The greenback managed a strong rebound in the direction of the top of final week and is holding on to that coming into this week. Issues are pretty calmer in the present day, with gentle adjustments general seen within the main currencies area. The greenback stays regular, because it appears to be like to acquire the following leg greater after final week’s strikes.
To this point in the present day, we have gotten some verbal intervention from Tokyo and that’s limiting the motion USD/JPY. In the meantime, China additionally stepped in to prop up the yuan foreign money and is seeing USD/CNY pull again after last week’s breakout. That’s preserving the shackles on the greenback as we glance in the direction of European buying and selling later.
That being stated, the main focus stays on the charts greater than anything the second. EUR/USD is little modified however is preserving close to a check of the 1.0800 mark for now. And GBP/USD is holding close to 1.2600, simply off a check of its 200-day transferring common at 1.2590 at present.
Then, there may be USD/CHF which is working up in opposition to gives nearer to 0.9000 after final week’s tried break. And AUD/USD can be preserving simply above 0.6500 with bids on the determine stage and minor help round 0.6480-90 nonetheless holding.
Briefly, there may be potential for the greenback to push some boundaries and set up the following leg greater from right here. However with much less key objects on the agenda to work with this week, therein lies the problem for greenback bulls. Have they got the urge for food to run with out a lot different impetus? In the mean time, the technicals would be the one to be the decide of that.
