Dollar Comeback Swamps Majors

The U.S dollar came back in the late European session to claim back gains as good earnings helped Wall Street to rise and the dark shades of blue that forces the market into a strong sell-off last night resided. That combination is surely working for the dollar as once again morning losses were retained.

Markets discarded the fall in house prices to focus that it was slightly better than expectations and fuel upon rising confidence, awaiting more crucial fundamentals this week from GDP to nonfarm on the U.S economy.

Once again the euro fails to break the sideways range by stalling against the 1.5758 resistance level where it set its high falling to the bottom of the range to breach the support at 1.5668 heading towards upcoming minor support at 1.5620s; the mentioned range is actually 38.2%-50.0% Fibonacci Correction levels for the latest upside wave that tool the euro from the bottom at 1.53s to set record highs above $1.60.

The euro is oversold on daily basis and nearing that on intraday basis as well, finding support at the mentioned lows is a high probability especially as the bearish momentum is weak and the minor mentioned support level if breached the euro will head towards 1.5580s, we can not now confirm again attempts to the upper band of the range to extend till 1.5820-30 as that will surely depend among today's closing to be at least back within our sideways range.

Concerning sterling after it attempted strong resistance at 1.9960s the pair failed to withhold against the dollar to once more attempt its solid support levels for momentum striking below the critical 1.9840 to set the low below the next critical level if 1.9814 though still the levels extending among 1.9840-20 provide good demand for the pair that might help it once more aim at 1.9880-90, while if those support levels were breached we'll see the 1.9750s once more.

The USDJPY rallied to the upside to breach into 108 levels once more after it found support near its lows in early trade at 107.20s which the pair as well couldn’t breach through; the pair now is facing strong resistance at 108.40s that might extend till 108.60s though with the pair being heavily overbought it might actually fail to breach today.

Crown Forex

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