Compared to yesterday morning the Dollar is trading a fair bit higher but still not impressive. Although risk sentiment has worsend the last 24 hours (with smallish relief this european morning) the Dollar has not yet made it into bullish territory. The DXY chart even shows a red daily candle at the moment. However, it remains questionable whether risk sentiment can fully recover quickly and with yesterdays US Holidays in mind it’s too early to write off the Dollar for the day.
(source: fxstreet.com)
EURUSD -- 1.1332
The 1.1300 treshold has been under threat this morning. Low of the day was 1.1288 just 8 pips above the last support at the 1.1280 level that we discussed yesterday. I cannot get bullish on the currency pair in this enviroment and prefer to short the Euro below the 50 ema (1.1352). A daily close above ends the short scenario for now.
AUDUSD -- 0.7215
The Aussie is holding up well. Even in yesterdays sell off the upward trend was not really in danger. Anyway bulls absolutely need a daily close above the 0.7224 resistance soon. The currency pair has been trying unsuccessfully for the past three trading days. Below the 50 ema (0.7177) the long scenario is over for now.
Good luck,
Sebbo