Dollar Index

Dollar bears were installed with some inspiration at the start of the trading week following the lagged effect of the poor US GDP report which showed growth only hitting 0.7% in Q4. Sentiment towards the USD had already been jittery since the start of the year as US economic data followed a negative pattern, while the fading expectations that US rates may be hiked at all continued to weigh heavily on the USD. The Dollar Index is in the process of turning bearish on the daily timeframe as prices have already crossed under the daily 20 SMA. A breakdown below 98.50 should encourage sellers to send prices towards 97.80.


The USDCHF is technically bullish on the daily timeframe and there have been consistently higher highs and higher lows. Prices are trading above both the daily 20 and 50 SMA while the MACD has also crossed to the upside. Previous resistance at 1.011 may act as a dynamic support which should encourage a further incline towards 1.030. A breach and daily close below parity signals bullish weakness and invalidates this daily bullish outlook.


The AUDUSD currently oscillates in a wide range with some support seen at 0.700 and resistance just below 0.7150. Prices are trading above the daily 20 SMA but the MACD points to the downside. A solid breakdown below 0.700 may suggest a further decline towards 0.6900 which is 100 pips away, on the other hand, if bulls managed to breach above 0.7150 then the next relevant resistance will be based at 0.7300.


This pair is technically bullish on the daily timeframe and a breakout above 87.30 should encourage a further appreciation towards 89.00. Previous resistance at 85.00 has become a dynamic support and buyers may use this to propel the CADJPY towards 87.30 and potentially higher. Candlesticks are currently trading above the daily 20 SMA while the MACD is in the process of crossing to the upside.  A bearish decline back below 83.00 invalidates this daily bullish outlook.

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