The U.S. Dollar finished mixed on Tuesday as investors for the most part looked for opportunities in more risky assets.
The U.S. Dollar finished mixed on Tuesday as investors for the most part looked for opportunities in more risky assets. U.S. equity markets rallied increasing the desire to buy oversold higher-yielding assets such as the Australian and New Zealand Dollars while selling the safe-haven Japanese Yen. Some Forex majors changed their daily chart trends to up indicating the potential for more upside movement while others appeared to be headed toward major retracement levels. For the most part the Dollar major remained inside of their six-week ranges.
The USD CAD opened lower as expected and continued to weaken throughout the day. Risk came back into this market as investors felt confident once again in holding higher-risk, higher-yielding assets.
As demand for higher yielding assets increased, the desire to hold on to Japanese Yen for protection diminished. Yesterday’s closing price reversal bottom in the USD JPY was confirmed by the follow-through rally today.
Despite still remaining inside of is main range of .6590 to .6151, the NZD USD turned its main trend to up when it crossed a swing top at .6393.
The AUD USD established a new bottom at .7702 but still remains in a down trend. The chart indicates upside gains may be limited until this pair can regain a key retracement zone at .7983 to .8049.
At this time the major Dollar pairs remain range bound, but the inability of the Dollar to break through major resistance levels coupled with rallying equity markets is putting the Dollar in a position to break substantially.