- Commonwealth Foreign Exchange (based on Reuters)
The US Dollar appears to be reluctant to fall below the 106.00 major level, as most losses keep getting erased once the exchange rate approaches the May low of 105.55. Nevertheless, the Greenback now finds itself in front of the weekly S1, which is weighing on the currency by acting as the immediate resistance level. At the same time, the nearest support is still represented by the May low, as well as the weekly S2 and the lower Bollinger band. Technical indicators also suggest the USD/JPY pair is to weaken for the fourth time in a row, but the main drivers remain the FOMC meeting minutes and the Yen's safe haven status.
Today 72% of traders are long the US Dollar, whereas the majority of all pending orders are to sell it, taking up 63% of the market.