‘The foreign exchange market’s main focus remains whether or not Trump can carry out his policies, and whether the U.S. economy will stay strong enough for the Fed to stick to the path of rate hikes.’ – Sony Financial Holdings (based on Business Recorder)
The US Dollar weakened against the Yen on Tuesday, marking a third consecutive decline. The pair is set for another leg down today, with the weekly S1 still acting as the nearest support at 110.27. This support, however, is unlikely to limit the losses should the US ADP Employment Change reading disappoint, with the 110.00 level open to exposure. Further below lies the descending channel’s support line, bolstered by the weekly S2, the monthly S1 and the lower Bollinger band, all marking the expected intraday low. Meanwhile, technical indicators keep giving bearish signals, bolstering the possibility of the bearish scenario.
Today 68% of traders are long the Greenback (previously 70%), while 63% of all pending orders are to acquire the American Dollar.