Why the U.S. dollar still reigns supreme
What a slow, slow day… but overall positive in terms of seeing the dollar push a bit higher. Having said that, the gains seen haven’t really made any clear statement and by no means confirmed resumption of the weekly/daily uptrend. What’s more, unless there is some event that’s going to emulate the sheer knicker-wetting panic of the nonfarm payrolls release, the probability favors that we’ll still be left in limbo at the end of today as well. Perhaps that’s something to look forward to on Friday…
In the meantime, we still remain with the rather confusing ambiguity of the fine balance in EUR/JPY that appears to have developed the potential to break strongly higher while any significant penetration in EUR/USD above Friday’s high is going to shake the foundations of the dollar bullish outlook…
With that said, I remain with a dollar bullish preference due to the nature of the decline in EUR/USD from the 1.2747 high being more aligned to an intermediate move rather than a terminal one. The key though, is having key dollar resistance levels break and that doesn’t look like happening today.
GBP/USD also needs to sort out its priorities having failed to break above the 1.5912 high. While that high remains intact the emphasis will remain on the downside but as described over the past two sessions I’m not convinced that it will be sustainable and more likely reverse to new highs. Quite how this will correlate with EUR/USD is still uncertain but then it is quite capable of being a renegade and deciding for itself what it will do.
In the meantime, we still remain with the rather confusing ambiguity of the fine balance in EUR/JPY that appears to have developed the potential to break strongly higher while any significant penetration in EUR/USD above Friday’s high is going to shake the foundations of the dollar bullish outlook…
With that said, I remain with a dollar bullish preference due to the nature of the decline in EUR/USD from the 1.2747 high being more aligned to an intermediate move rather than a terminal one. The key though, is having key dollar resistance levels break and that doesn’t look like happening today.
GBP/USD also needs to sort out its priorities having failed to break above the 1.5912 high. While that high remains intact the emphasis will remain on the downside but as described over the past two sessions I’m not convinced that it will be sustainable and more likely reverse to new highs. Quite how this will correlate with EUR/USD is still uncertain but then it is quite capable of being a renegade and deciding for itself what it will do.