Spreads
Spreads
Spreads
Spreads
Spreads
The Euro fared worse against the U.S. Dollar on the first trading day of the week. Market participants demanded the U.S. Greenback, which rose more than 0.3% after the American trading session began. The shared currency continues to trend upwards in the long term, but significant economic headwinds and a slow to react central bank pose long term upside limits to the EURUSD pair. Market participants will be focused on Thursday as the ECB is set t announce its monetary policy statement.
On the technical side, the resistance at 1.07614 remains unchallenged while support levels at 1.0695 and 1.06816 sit firm. RSI for the pair sits at 53.34, as of writing. On the four hour chart, EURUSD currently trades below its 50 day SMA, but above its 100 and 200 day SMA.
Resistance: 1.07614, 1.07864
Support: 1.0695, 1.06816
The British Pound traded lower against the dollar on the first trading day of the week. Dollar demand surged as the U.S. 10 year treasury yield soared past 3%. Despite an upward equities market, market participants rotated into the U.S. Greenback to take advantage of rising yields. On the 7th, the U.K. is set for a vote of no confidence for prime minister Borris Johnson.
On the technical side, resistance for Cable sits firmly at the 1.25691 and 1.26539 price region, while the support level at 1.24539 remains intact. RSI for the pair sits at 47.27, as of writing. On the four hour chart, Cable currently trades below its 50 days SMA but above its 100 and 200 day SMA.
Resistance: 1.25691, 1.26539
Support: 1.24539
The U.S. Greenback surged against the Japanese Yen on the first trading day of the week. Broad-based demand for the Dollar resulted from the surging U.S. 10 year treasury yield. The better than expected job report from last Friday provided much tailwind for the U.S. Dollar. The BoJ remains its long term easy money stance to prop up its export friendly economy; on the other hand, the Fed is set to raise at least 100 basis points more by the end of the year. Interest rate differentials between the two countries continue to favour Dollar bulls.
On the technical side, USDJPY reached its historical high on the first trading day of the week and is continuing higher into the American trading session. The support level for USDJPY sits at 129.795 and 126.738, while resistance levels have yet to form. RSI for the pair sits at 52.99, as of writing. On the four hour chart, USDJPY currently trades well above its 50, 100, and 200 days SMA.
Resistance: 133
Support: 129.795, 129.738
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