Dollar started the week with a bang. Yesterday Dollar index was up about 1/3 percentage points in spite of major market close due to holiday and today with return in volume Dollar has moved even higher. Dollar index is currently trading at 97, up already 0.70% for the day.
- It seems that dollar bulls have returned and they have returned in a rush since last Friday when US core CPI surprised to the upside unexpectedly and Federal Reserve Janet Yellen indicated that FED will act even before unemployment and inflation reaches target, in a bid to avoid overheating the economy.
Since last week, some key levels and trend line got broken among Dollar’s major trading counterparts.
- Euro and Pound, both has broken below key levels and stands ready to further down. Euro is currently trading at 1.091 and pound at 1.541 against dollar.
- Yen has broken above key resistance of 122 and currently trading at 122.5. Canadian dollar is set to loose against more against dollar (Currently trading at 1.234. Australian Dollar has broken trend line and reversed its bullish bias and looks poised to test support around 0.76. Currently trading at 0.779.
- New Zealand Dollar has already been weak due to RBNZ dovish bias, and now looks all set to test support around 0.718 area with dollar posing strength.
- Gold has broken below $1200 area, looks all set to go down further and test support once more at $1178.
The material has been provided by InstaForex Company – www.instaforex.com