Yellen confirmed the FED March Rate Hike is on the table unless data changes. With stocks at record highs and inflation picking up, only the US Nonfarm Payrolls this Friday have the ability to derail the hike train now. The NFP has been consistently strong in the last 6 months however so it would be a big surprise if it was negative enough to hit FED expectations.
The reaction in the markets was counter intuitive with the USD sold aggressively in the US session Friday but this was a combination of profit taking in both US stocks and yields. Support on dips should emerge as long as stock markets do not pullback more aggressively in the coming days.
USD/JPY is still within its bigger Y112-Y115 range and only a break above this will open up the way to Y118 the high from December. EUR/USD held its major support at 1.0500 and this is also helping accelerate the pace of the bounce from the level as the USD was sold off across the board.
GBP/USD rallied but lagged the Euro with the Article 50 trigger timing still in doubt and the combative tone of UK PM May causing angst in the market. AUD/USD it sitting just below the previous key support now turned resistance at 0.7600.
| EUR/USD |
3/5/2017 11:18 PM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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EUR/USD Intraday: watch 1.0630. |
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Pivot: 1.0570
Our preference: long positions above 1.0570 with targets at 1.0630 & 1.0655 in extension.
Alternative scenario: below 1.0570 look for further downside with 1.0540 & 1.0510 as targets.
Comment: the RSI is supported by a rising trend line.
Supports and resistances:
1.0675 **
1.0655 **
1.0630 ***
1.0613 Last
1.0570 ***
1.0540 ***
1.0510 ** |
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