Market Morning Briefing: The Dollar Remains Weak Overall Against The Majors
The Dollar remains weak overall against the Majors and relatively stronger against the Rupee.
Friday saw fresh strength in the Euro (1.1828) which has risen from a low of 1.1748. Good Support is available at 1.1720-00 now, reducing our concern about the risk of a fall to 1.1650-00.
Surprisingly, there hasn’t been much follow-through sales below 109.00 in Dollar-Yen (109.40). Still, the trend remains overall bearish with intra-day/ intra-week Resistance at 109.70-90. At the same time, near-term Support has been established at 108.68. So, a sideways whipsaw movement is a possibility to be considered.
Consequetly, the Euro-Yen (129.36) still manages to trade above 128, a crucial Support on the Weekly Candles. If there is a strong bounce above 130 from here, it might rekindle the “Risk-ON” trade, which had come into doubt last week.
Decent Support is seen at 1.29 for the Pound (1.3016) on the 3-day Candles and dips thereto might get bought for a bounce towards 1.32.
The Aussie (0.7905) has bounced well enough from the Support at 0.7835 mentioned on Friday. As such, it might gather strength to rise further towards 0.80.
Overall crude prices have some possibility of falling in the coming sessions while Silver could have some more room on the upside. Gold looks bearish.
Gold (1287.59) has come off slightly from levels near 1292 seen last week. Immediate resistance is visible near 1296 which if holds could push off the price towards 1267 in the coming sessions. A break above 1296-1300, if seen could open up chances of testing 1315-1320 on the upside. We will have to remain cautious just now. In case the Dollar Index (93.07) falls towards 92, Gold could strengthen some more in the near term.
Silver (17.09) could test resistance near 17.50 in the coming sessions before coming off towards 16.50-16.00 levels. A break above 17.50 could turn bullish for Silver.
Brent (51.97) is also trading below important resistance near 55 and while that holds, could come off towards 50-48 levels in the near to medium term. Also note an interim support near 51 which if holds, could possibly keep Brent prices stable within 55-51 zone for some sessions. While 51 holds, we may assign less preference to 50-48 levels just now.