Title - U.S. Dollar Rises, Aussie and Sterling fall, here's why

Created 09/17/2019 at 09:24AM


EUR and JPY are the top G10 FX gainers today, up 0.12% and -0.01% vs the dollar while SEK and AUD are the top losers, down -0.48% and -0.41% vs the dollar.

 

The U.S. dollar caught a bid as the geopolitical tension rose due to attacks on Saudi oil refineries. Safehaven currencies such as Yen and CHF also found support. AUD was sold-off after a dovish central bank. Oil prices retraced from yesterday's highs but were on a move up once again.

 

Sterling fell from six-week highs versus the dollar as Prime Minister Boris Johnson reiterated his pledge deliver Brexit by Oct. 31. Though legally he is obliged to extend the deadline if no deal is struck by 19 October, there are rumors that he is seeking a legal alternative to get UK out of the EU before the October deadline.

 

In the Asian equities space, the Nikkei 225 closed up 0.06% at 22,001.32, Hang Seng closed -1.23% at 26790.24 and Kospi ended 0.01% at 2062.33. The European equities were trading mixed with the FTSE +0.11% at 7329.43, DAX -0.15% at 12361.54, and CAC +0.09% at 5607.29. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.8258% and the Bund 10-year yield trading at -0.484%. In the energy space, the Brent (front month) is trading down (-0.46%) for the day at $68.7.

 

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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 1.1062 for 1.0975
Short-term view: EUR/USD resistance at 1.1062, MACD and RSI are weakening. Hence, we see a move to 1.0975, likely 1.0903. Above 1.1062 to open 1.1120

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2481 for 1.2325
Short-term view: GBP/USD resistance at 1.2481, MACD and RSI are weakening. We see risk of a dip to 1.2325, likely 1.2265. Above 1.2481 to open 1.2584

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 108.43 for 107.48
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 0.6920 for 0.6830
Short-term view: AUD/USD MACD and RSI are weakening, resistance at 0.6920 for a move lower towards 0.6830, likely 0.6780. Above 0.6920 we look for 0.6950 in the immediate short-term.