After brief rally on risk aversion in early US session, Dollar quickly reversed as dragged down by free fall in treasury yields. Dollar is currently the second weakest for the day. 10-year yield is currently down -0.069 at 2.324. It’s on track for 2.292 fib level as noted here. Canadian Dollar is the worst performer on free fall in oil prices.

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EUR/USD breached 1.1111 low to 1.1107 but recovers strongly. Medium term down trend from 1.2555 is not ready to resume yet. Consolidation from 1.1111 is going to extend with another rising leg. But we don’t expect a break of 1.1263 resistance before down trend resumption.

USD/CHF’s near term decline from 1.0237 resumes by taking out 1.0050. Next stop is 61.8% retracement of 0.9879 to 1.0237 at 1.0016. We’d look for bottoming signal below there.

USD/JPY’s break of 109.81 minor support suggest that corrective recovery from 109.02 has completed at 110.67. Retest of 109.02 should be seen next and break will resume the decline from 112.40, towards 104.69 low.


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