USD Continues to Weaken Ahead of Tomorrow’s Announcements – Daily Market Analysis
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USDJPY approaching the May highs posted earlier this year.
EURUSD coming off yesterday continuing the declines posted last Friday after the pair posted a monthly high at 1.3620 but eventually closed the day negatively lower. Currently the pair is trading at 1.3566, retracing some of the losses made yesterday. Current levels could offer some resistance, a break above exposes 1.3615 next, Yesterday’s highs, staying below 1.3566 would be a bearish signal with targets at 1.3523 initially, followed by 1.3502 and 1.3479.
USDJPY closing positively for days in a row, the pair is approaching the levels last seen earlier this year on May. The pair has rallied 600 PIPS from the OCT lows. Market is stretched at current levels and the May highs could offer some resistance as well, we could see a pullback in the pair before the next leg up. Market events later this week could give a boost to the pair breaking the yearly highs. Bias remains to the upside as long as this market is above 101.91, below this levels would be a bearish signal.
The GBPUSD broke the 3 months range the pair was trading in, as we stated in previous reviews, that a break above the top of the range would create a quick and a strong move higher as stops were probably were lined up above the top of the range. Yesterday the pair has formed new monthly highs and new yearly highs as well, but eventually closed below, forming a bearish pin bar. The pair could retrace back to top of the range, testing this levels now from above as support.