After rallying strongly since the release of the great consumer confidence report (best in 5 years) ,the dollar’s luck has now changed and it is falling across the board.
EUR/USD is marching forward towards high resistance, yet doesn’t really challenge the double top of 1.30 at the moment. The Aussie enjoys an impressive kangaroo comeback: AUD/USD managed to break back above the important line it lost and USD/JPY is erasing its previous gains.
- EUR/USD was already pressured towards the low end of the 1.28-1.30 range. After a gradual climb towards resistance at 1.2880, the pair broke higher above this line and it is now battling with resistance at 1.2960, the last step before 1.30. Update: EUR/USD temporarily breaks above 1.2960, but the break seems false for now. It’s important to remember that 1.30 was a double top recently. A break above 1.30 could result in a fast rally upwards, but it’s quite uncertain if the euro can do it.
- AUD/USD fell to the lowest levels since October 2011 by losing the 0.9580 line. Yet after falling as low as 0.9527, the Aussie recovered and got closer to 0.9580. The plunge of the greenback triggered yet another kangaroo leap: AUD/USD reached resistance at 0.9650 before sliding a bit.
- USD/JPY already lost 102 prior to this recent crash, but managed to hold above the historic 101.44 line. The current rush sent it temporarily under 101. Dollar/yen is now at around 101.15.
- GBP/USD was also struggling closer to the very round 1.50 line, and not for the first time. The dollar’s crash helped it recover swiftly and cable is above 1.51 once again. Similar to the euro, it remains range bound.
Further reading: Fearing the Fed tapering. Here is a live chart of EUR/USD:
[do action=”tradingviews” pair=”EURUSD” interval=”60″/]
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