Dollar under Pressure as Global Stocks Gain

The U.S. Dollar is down overnight, pressured by fresh demand for higher yielding assets. A boost in global equity markets is the main catalyst behind the fall in the Greenback.

The U.S. Dollar is down overnight, pressured by fresh demand for higher yielding assets. A boost in global equity markets is the main catalyst behind the fall in the Greenback. Technical factors are also contributing to the Dollar’s weakness. Overbought conditions are setting up the charts for a meaningful retracement of recent gains.

The EUR USD is up overnight. A new main bottom has been formed at 1.4217. The chart pattern suggests that upside momentum may be building with a possibility for a rally back to 1.4680 over the near-term.

The GBP USD is appears to be building a small support base. The lack of fresh negative news has led to the absence of sellers. Watch for a short-covering rally if 1.6022 is penetrated.

The USD JPY is trading inside of a tight range. Upside momentum is slowing which makes this market vulnerable to a short-term correction. The daily chart pattern suggests a possible pull-back to 90.77 over the near-term.

The old top at 1.0337 appears to be forming short-term support for the USD CHF. If this support fails, this market could accelerate to the downside. The current pattern suggests a break to 1.0212 is possible over the near-term.

The USD CAD is under pressure this morning. Currently this market is holding a retracement level at 1.0459. A break through this level could trigger a test of a recent main bottom at 1.0405.

The AUD USD is rebounding off the 50% price at .8780. The current rally has helped form a new main bottom at .8734. The short-term charts suggest a rally back to .8964 is likely over the near-term before new selling pressure surfaces.

Short-covering and demand for higher yielding assets is helping to drive the NZD USD higher. A new main range has formed between .7318 – .6970. Upside momentum could drive this market to .7144 before selling pressure resumes.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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