Entering into US session, Dollar picks up a long of strength today and is trading as the strongest one. Over the week, the greenback is sitting as the second strongest, next to Australian Dollar. But based on the current downside momentum in AUD/USD, the greenback will likely take over the top spot soon.
On the other hand, Yen continues to trade as the weakest one thanks to return of risk appetite. Nikkei closed up 0.66% to 22196.89. China Shanghai SSE also managed to closed up 0.44% at 2827.63, despite initial jitters. Singapore Strait Times is even more impressive and gained 1.42% to 3274.83. Major European indices follow with DAX up 0.4%, CAC up 0.53% and FTSE up 0.17% at the time of writing. For now, US futures also point to higher open and NASDAQ could have a take on historical high at 7806.6.
Technically, we’ve been viewing dollar’s pull decline in the last two weeks or so as correction. The question now is whether Dollar is ready to resume the larger rally. USD Action Bias table doesn’t look too promising yet, except USD/JPY.
But momentum could start to build up should EUR/USD takes out 1.1679 minor support. That could trigger broad based come back in the greenback.
