Title - U.S. Dollar falls, Pound rallies, Here's Why

Created 09/20/2019 at 09:19AM


CHF and GBP are the top G10 FX gainers today, up 0.19% and 0.11% vs the dollar while NZD and NOK are the top losers, down -0.37% and -0.13% vs the dollar.

 

The U.S. dollar edged lower headed for a third weekly loss in a row as expectations of a resolution in trade wars between U.S. and China improved risk appetite. A spike in the overnight repo rates in the U.S. this week also reduced demand for the dollar.

 

Elsewhere, Pound rallied on Juncker comments where he hinted a possible Brexit deal; he said a Brexit deal with the U.K. is still possible.

 

In the Asian equities space, the Nikkei 225 closed up 0.16% at 22,079.09, Hang Seng closed -0.13% at 26435.67 and Kospi ended 0.54% at 2091.52. The European equities were trading weaker with the FTSE down -0.11% at 7348.32, DAX down -0.19% at 12433.49, and CAC down -0.08% at 5654.38. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.7736% and the Bund 10-year yield trading at -0.513%. In the energy space, the Brent (front month) is trading up (0.47%) for the day at $64.7.

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

Trade Weighted Basket Hourly (two-week)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1085 for 1.0975
Short-term view: EUR/USD resistance at 1.1085, MACD and RSI are weakening. Hence, we see a move to 1.0975, likely 1.0903. Above 1.1085 to open 1.1120

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2584 for 1.2461
Short-term view: GBP/USD resistance at 1.2584, MACD and RSI are weakening. We see risk of a dip to 1.2461, likely 1.2381. Above 1.2584 to open 1.2650

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 108.43 for 107.05
Short-term view: USD/JPY has resistance around 108.43, MACD and RSI are topping out, Hence, we see a move lower to 107.48, likely 107.05. Above 108.43 opens 108.81

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6830 for 0.6725
Short-term view: AUD/USD MACD and RSI are weakening, resistance at 0.6830 for a move lower towards 0.6725, likely 0.6650. Above 0.6830 we look for 0.6869.