Friday’s Dollar close looked bearish, but obviously it wasn't a sustainable dip. Dollar is trading firm again this Asian and European morning. And with red stocks it is quite risky to setup Dollar shorts again. I bought some Aussie this am* but already feeling uncomfortable with the deeper dip below the 0.6300 level. There was some action around Yen as well last Friday and this very early morning. But for now any interventions by the BoJ are only used to sell the Yen against the Dollar again.
The Dollar-Index (DXY) is trading above the 112 support again after the roller coaster ride on Friday. So far it could only be a correction of the correction, but the DXY should not go above 113 again. Smart short players better await confirmation that 112 support is history.
EURUSD -- 0.9830
All quiet on the Euro front. Below the red descending trend line (0.9882 ish) and the 50 ema (0,9911) the currency pair is trading in bearish territory. Above this resistance zone bears can hope for the parity to hold but I wouldn't want to rely on that. Next support comes in at the mid Bollinger band (0.9786).
USDJPY -- 149.38
Money managers apparently replaced their long S&P500 trade earlier in the year with this currency pair. It's just a perfect trade. You buy security and interest, double happiness, so to speak. And I have to admit, I never would have believed that this story would be bought for so long. As long as the big players don't pull the plug, the Dollar will probably continue to go up. Players who haven't burned any money yet could try to sell the pair again towards the 150 treshold.
USDCHF -- 1.0012
After some excursions above parity during the last trading week the weekly close itself (0.9992) was just slightly below the big psychological level. Anyway there was no daily close above the 1.0065 treshold and I recommend to watch this level carefully. There is a lot of room upside in the longer-term picture.
Good luck,
Sebbo
(*reminder: my content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances.)