 Dollar suffered brief set back overnight as Euro attempted for a rally. But the greenback quickly found its footing and it's trading as the strongest one in Asian session today. In particular USD/CHF took out 0.9651 resistance, which is taken as a signal of near term reversal. It remains to be proven if the greenback is ready for reversal, or it's just broad based weakness in the Franc. For now, Swiss Franc is the weakest one, followed by Australian Dollar. In other markets, DOW ended down -0.68% yesterday, digesting recent strong record run. S&P 500 also lost -0.35% but NASDAQ was steady and gained 0.08%. US treasury yields closed slightly higher with 10 year yield up 0.010 at 3.078 and 30-year yield added 0.005 to 3.210. Both are yet to find sustainable momentum through key resistance level at 3.115 and 3.225 respectively. In Asia, Japanese Nikkei is up 0.16% at the time of writing. Singapore Strait Times is up 0.39%. China Shanghai SSE is down -0.76%. Technically, first thing to note is that despite spiking higher to 1.1814, EUR/USD is back below 1.1779 key fibonacci resistance. Focus remains on whether it will reverse from current level as we anticipate. As mentioned above, USD/CHF's break of 0.9651 is already a sign of bullish reversal. EUR/CHF also broke 1.1342 minor resistance. More downside is now in expected for Swiss Franc in general. The levels to watch include 0.7228 support in AUD/USD, 1.3042 support in GBP/USD, 1.2975 resistance in USD/CAD. Break of these levels will solidify the case of Dollar comeback. |
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