EURUSD goes higher on overnight broad USD weakness after the higher CPI cannot spur more USD demands. And more short coverings on EUR and EUR cross driven the pair to go higher as the technical daily reversal also add more upside momentum for the pair despite some short term overbought. Today US PPI, initial jobless claims, NAHB housing market index, Philadelphia Fed manufacturing Index as well as ECB’s members speech and stock/bond market move will direct the intraday action with support at 1.2450 and resistance at 1.2538 (year high) to still prefer buying on dips with tight stop strategy.
USDJPY lower down despite of the higher UST yield (10 years 2.92%) and rebound of US and Japan stocks with market running risk off trades as well as the broad USD weakness. Also from earlier the Japan’s Finance Minister Aso saying “the current situation doesn’t warranty special intervention, the yen isn’t rising or falling abruptly” which have driven more short term selling on the pair. The technical downside risk remains on price below 107.30-40 and next target is 106 and 105.50. Prefer to keep selling on rallies with tight stop strategy.
GBPUSD went up sharply overnight after dipping down to 1.3797 with the short term base at around 1.38 handle, broad USD weakness despite of higher CPI but lower retail sales and worries for fiscal deficit widening which might still add some pressure for USD but Brexit uncertainty remains on capping the topside as well. Today US data and stock/bond market move will have some intraday impact with support at 1.3960 and 1.4000 with resistance at 1.4080 and 1.4120 to still prefer in choppy range trading pattern continuation.
USDCHF lower on broad USD weakness and in effect of slightly lower EURCHF. The fragile risk sentiment remains to add some pressure for the pair in short term. Today the US data and stock/bond market move will have some intraday impact with support at 0.9220 and resistance at 0.9295-00 still to prefer in range trading with tight stop strategy.
EURJPY lower down to 131.59 overnight before rebounding with the higher EURUSD leading the way up. A higher UST yield and stock rebound will give some support for the cross but the fragile risk sentiment and lower USDJPY will still capping on any meaning correction. Today the US data and stock/bond market move will have some intraday impact with support at 132 and resistance at 133.30 still prefer to sell on rallies with tight stop strategy.
EURGBP retraces slightly after both EUR and GBP goes higher. As the EUR close to reaching a year high, GBP still a distance away from leading some profit taking on the cross. But overall trend remain bullish on Brexit uncertainty, growth divergence trend and current account differential effect. Today ECB members speech and US data, stock/bond market move will have some intraday impact with support at 0.8870-75 and resistance at 0.8960 still preferring on buying dips with tight stop strategy.
GOLD goes higher on broad USD weakness and further short coverings after the break 1340 as well as the effect in buying large fixing demand, higher US stock and UST yield (10 years 2.92%) will slow the upside move but the overall bullish trend remains on current weak USD environment. Today the US data and stock/bond market move will have some intraday impact with support at 1350 and resistance at 1366 (year high) to still prefer to buy on dips with tight stop strategy.
Silver higher in going the same direction with GOLD and the broad USD weakness also support metal’s upside in short term. Today the US data and stock/bond market move will have some intraday impact with support at 16.85-90 and resistance at 17.20-25 still prefer to buy on dips with tight stop strategy.