Dollar Higher Over Asian Covid-19 Upsurge Concerns

The Dollar elevated on Monday morning in Asia amid distresses caused by fresh COVID-19 cases in some Asian Countries. Notwithstanding, investors are densely positioning for a drop in the U.S. currency as the U.S. Federal Reserve holds to its current dovish policy.

The U.S. dollar index traces the greenback against a basket of other currencies slightly up 0.06% to 90.373.
The USD/JPY pair slightly up 0.01% to 109.336.
The AUD/USD pair was declined 0.24% to 0.7753, with the reserve bank of Australia due to release the minutes from its latest meeting on Tuesday.

The NZD/USD pair declined 0.52% to 0.7216.

The USD/CNY pair Slightly up 0.03% to 6.4384.
Chinese industrial production growth decreased to 9.8% yearly in April, as per the data released earlier in the day.

The GBP/USD pair slightly down 0.04% to 1.4090.
However, the pound was almost a two-and-a-half-month high as the U.K. reopens its economy after a four-month lockdown.

The U.S. currency was supported by facilitating commodity prices and the COVID-19 outbreaks in Singapore and Taiwan with both countries hardening restrictive measures.
Singaporean primary, secondary, junior college, and Millennia Institute students shifted to full home-based learning from May 19 till the end of the school term on May 28.

However, a rebound from surprisingly good U.S. inflation data released during the earlier week dissolved over uprising investor hopes that the Fed will keep investment rates low.

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Dollar Steadied Against Major Currencies; Bitcoin Tumbled On China’s Verdict

The Dollar Stabilized versus major currencies on Wednesday as traders were waiting for U.S. Federal Reserve minutes, Although bitcoin dropped after China halted its financial institutions from offering services related to cryptocurrency assets.

The minutes from the Fed’s most recent meeting is going to take place later on Wednesday are assumed to validate that policymakers are perhaps not ready to increase the rates.

The U.S currency traded at $1.2076 against the Canadian dollar close to its weakest since May 2015.

The GBP bought $1.4187, which was near its strongest level since late February.

The EUR was constant at $1.2231.
The dollar slightly moved at 108.96 against the yen and 0.8974 against the Swiss franc.
Previous week Data showing U.S. consumer prices increased 4.2% in April from a year earlier, was the quickest development in more than a decade, boosting concerns the Fed will have to commence raising interest rates earlier.

Fed policymakers confirmed that the rise is short-lived and repeated that they expect rates to remain flat, though not all are convinced by the Fed’s line.

The Dollar Index traces the U.S. Currency against a basket of six major currencies was valued at 89.732.

CAD and GBP Elevated as the expectations for policy tightening in Canada and the progressive lifting of all the restriction of coronavirus in Britain. However, any favorable inflation can lead the Dollar to recover from some of its losses.

In the cryptocurrency market, bitcoin plunged below the closely-watched $40,000-mark to a three-month low of $39,000.
Ether dropped by more than 13% to $2,900, which is a two-week low.

Managerial uncertainty has appeared as an adverse factor after China banned its financial systems from offering cryptocurrency registration, trading, clearing, and settlement in a blow to investors who were betting that digital assets will gain mainstream status.

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Last edited by xtreamforex (5/19/2021 5:07 am)

A Busy Economic Calendar Puts the EUR, the Loonie, the Pound, and the U.S Dollar in Focus

Technical Market Analysis

EUR/USD

Looking out to the pair, the price has already given the dip of 30 pips as the US dollar strengthened, by the mid of Thursday noon EUR/USD had been pushed up by the SMA to the resistance price of 1.2200. We can say that the pair will remain on the front foot around 1.2230 during the early morning today, later we have seen there was the decline of 0.5% of our dollar, On the monetary policy front, ECB president Lagarde is also scheduled to speak, major key levels of the pairs are as follow
Support level 1.2226
Resistance level 1.2239

GBP/USD

We can say that GBPUSD maintains a bullish bias in the short term picture, The pair opened at a higher price and quickly retreated toward the session’s low near 1.4169 giving the movement of 30 pips, Currently, the pair is trading at 1.4177 down of 0.08% on the day.
support level 1.4166
Resistance level 1.4181

AUD/USD

The Australian employment data largely disappointed yesterday giving the sharp decrease of 30,600 jobs against an expected gain of 15,000 jobs for April. Although there was a boost overnight following the slide on the greenback, the unemployment rate falls to 5.5%. Today we can see stable movement at 0.7756 and it could give the range between 0.78-0.7750 region for now. If there will be a break on any of these prices, it will give clarity on future movements
Support level 0.7746
Resistance level 0.7770

XAU/USD

The commodity is witnessed down on Friday morning in Asia Session as an improving outlook for Investors, however, dollar weakness and growth in Inflationary pressure capped losses. The latest update for the commodity is while bouncing off the intraday low, gold prints mild losses which is 0.10% coming around 1875.40 during Friday’s Asian session. Giving the consolidated gains, here are the levels it can witness today
Support level 1870.34
Resistance level 1878.44.

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Last edited by xtreamforex (5/21/2021 6:30 am)

Market analysis for 25th May 2021

EUR/USD

A bullish trend for the EURUSD pair is expected with an optimal forecast of 1.2279 and with daily volatility of 0.47%. The successive gains in the pair are credited to the downbeat performance of the US dollar. The higher point for the pair was $1.2215 yesterday, giving a positive outlook for further gains. But today the pair is giving the narrow range of 1.2210-30 staying close to the February highs. On the hourly chart, EUR/USD is still trading above the MA line (200) H1 ($1.2165). The situation is similar to the four-hour chart.

GBP/USD

Today, The pair is trading in the range of 1.4110-70, On the hourly chart, the pair is testing MA(200) H1 (1.4130) moving average line, but on the four-hour chart, it will be neutral. The main scenario for the pair’s promotion is the session high of 1.4170 and maybe can reach 1.4235. Looking out for the alternative scenario, if the support of 1.4080-1.4100 is broken, then the pair may fall to 1.4005.

NZD/USD

Kiwi Dollar recently broke the trendline, which is now in focus following the overnight higher move. The pair also now against its 20-day SMA. If the pair manages to break back above trendline resistance, then we can see the new higher highs. Alternatively, a move lower would look for support at 61.8%. With the strong momentum, line favoring NZDUSD bulls, the quote’s run-up towards another trend line resistance, around 0.7255 becomes imminent. Though any upside needs to cross 0.7270 before challenging the monthly top near 0.7305.

XAU/USD

Gold prices have held the multi-month bull flag resistance, which is increasing the confidence that a march back to all-time highs has begun. This boost in gold has been noticed after the weakness in US Treasury yields. The XAUUSD pair started the week on a firm footing and extended its technical buying pressure. Resistance of the pair may target 1902 giving the Fibonacci retracement level of 61.80%. Support is seen near the 200 SMA at 1845.

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TECHNICAL OVERVIEW 28TH MAY

EUR/USD

EUR/USD recently broke the level of 1.22. trending upwards. The currency pair is moving towards the support zone of 1.21500 and the next resistance zone is at 1.23200. Look for buying opportunities for the pair if it bounces up the support zone of 1.21500. the previous day, mainly on US Dollar, rebound ahead of the key inflation figures and budget announcements. The US inflation figures are likely to favor the US dollar, upbeat expectations from the budget may tame the greenback’s upside, likely restricting EUR/USD losses.

GBP/USD

GBP/USD recently bounced up from the key level of 1.41 after the hawkish remark made by a BANK OF ENGLAND committee member that if the current furlough program were to end smoothly by the end of this year, it will likely to appropriate for the central bank to increase rate next year. The currency pair is testing to break above the key level of 1.42. Its next support is at 1.40000 and the next resistance zone is at 1.43500—look for buying opportunities if it breaks above the key level of 1.42

AUD/USD

AUD/USD is ranging across—it was announced yesterday that Australia’s Victoria states will be going under 1-week lockdown in an attempt to contain the COVID outbreak in Melbourne. AUD/USD’s next support zone is at 0.75500 and the next resistance zone is at 0.78000. Look for selling opportunities for the pair. The pair is holding the lower ground below 0.7750, although clinging to its recent trading range. The US Dollar sees renewed buying interest, despite the risk-on mood fueled by president Biden’s spending plans. All eyes on US Core PCE Index

XAU/USD

The US Dollar is creeping higher, while the price of gold is trading down some 0.11% on the day, slipping below the hourly 10 EMA from a high of $1898 to print $1894, the low for a day so far. However, from a daily perspective, the emphasis on the upside following what appears to be a meanwhile and healthy correction in an otherwise strongly bullish environment.

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Last edited by xtreamforex (5/28/2021 2:52 am)

Technical update 4th June

EUR/USD

Currently, EUR/USD is testing the support zone of 1.21500, if the pair breaks this level then look for short-term selling opportunities until the release of the U.S jobs reports later in 2030 (GMT+8). Overall, the pair is trending upwards. Even if the euro experiences temporary momentum on upcoming data, The economists don’t see that big move being sustained in the face of a gradually more hawkish tone from fed.

GBP/USD

GBP/USD is currently testing to break below the key level of 1.41. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500. If the pair breaks this level then look for short-term selling opportunities of GBPUSD up until the release of the U.S jobs report later at 2030 (GMT+8).GBP/USD remains pressured around 1.41, consolidating its losses.

AUD/USD

The pair has reached the 0.7675 pivots as the dollar strengthens across the board, We can expect Aussie to fall potentially to 0.7394, overall the pair is ranging across. Recently the pair broke the level of 0.77. The Australian Retail Sales m/m data (Actual: 1.1%, Forecast: 1.1%, Previous: 1.1%) released yesterday indicated an increase in consumer spending at the same rate as the previous month, The pair’s next support zone is at 0.75500 and the next resistance zone is at 0.78000, look for short-term selling opportunities of the pair until the release of U.S jobs report later at 2030 (GMT +8).

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Last edited by xtreamforex (6/04/2021 6:10 am)