Stocks sold off for a 2nd day on Tuesday with concerns about Trump’s Presidential style undermining the confidence of investors. The USD tracked the concern lower and we saw the USD Index broke below 100.
EUR/USD has broken above 1.0800 to fresh cycle highs and was supported not just on USD weakness but comments from Trump advisor Navarro that the Euro was severely undervalued.
USD/JPY hit fresh cycle lows near Y112 but bounced back to Y113 as dip buyers emerged. The BOJ meeting yesterday was a non event with the central bank still targeting both the long and short end but there was some slight upgrades to the outlook for the economy.
The Dow Jones fell back to 19800 but was able to close off the lows near 19900 as Pharma shares rallied on a Trump meeting where he was more docile than expected.
AUD/USD failed to take advantage of the USD weakness capped at 0.7600 once again. Risk off trading hurts the sentiment of AUD as heavy AUD/JPY selling and EUR/AUD buying caps the major.
| EUR/USD |
1/31/2017 9:00 PM |
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Trend daily chart  (=) |
Trend weekly chart  (=) |
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EUR/USD Intraday: further advance. |
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Pivot: 1.0765
Our preference: long positions above 1.0765 with targets at 1.0815 & 1.0850 in extension.
Alternative scenario: below 1.0765 look for further downside with 1.0740 & 1.0710 as targets.
Comment: the RSI is bullish and calls for further advance.
Supports and resistances:
1.0865 *
1.0850 ***
1.0815 **
1.0795 Last
1.0765 ***
1.0740 ***
1.0710 *** |
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