The dollar reacted quite negatively to some weak data, even though the US economy is still the “cleanest dirty shirt” in the pile enjoying strong job figures on all fronts. Everythingis now forgotten in the global gloom that has now hit the USD as well.
Update: USD flash crashes: EUR/USD > 1.28, GBP/USD > 1.60
However, this sell off could have some limits. Here they are:
- EUR/USD is currently capped by the 1.2765 line which capped the pair yesterday. 1.28 is next, followed by 1.2860. 1.27 and more importantly 1.2660 provide support.
- GBP/USD is approaching the obvious round line of 1.60. The next resistance line is close: 1.6050 which was the “Scottish low”. On the downside, 1.5950 and 1.5875 are support.
- USD/JPY sees immediate support at 106.20, but really strong support only at 105. Resistance is at 1.0665, followed by 107.50.
- USD/CAD has support at 1.1320, followed by the previous 2014 high of 1.1280. The pair is still at the lowest levels since 2009 with the peak standing at 1.1384.
- AUD/USD sees resistance at 0.8820, followed by 0.8920. Support is found at 0.87, followed by the previous double bottom of 0.8660.
- NZD/USD is close to resistance at 0.7920, and 0.7975 is the next line. Support awaits at 0.7820 with 0.7790 close by.
More: USD: Overbought; Further Position Clearing Ahead – Credit Agricole
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