Not too sure if Fed's Williams spooked the market or there were other reasons. But his comment on Fed imminent cut back on its massive bond-buying program this summer if the economy continues to pick up steam, would be something that one should sit up and start paying attention to. Xauusd dropped sharply, US equity market closed weaker and firmer USD throughout Asia. It does look like the recent correction in the greenback is probably over and its resuming its bullish run. Look at AUDUSD, despite the good set of economic data, this commodity currency was being sold off. Let's not go against the grain now and should position ourselves for firmer USD. That being said, I expect initial pressure on E$ to flush out the string of sell stops below before it rebound.
Primary trend: Bullish
Intermediate trend: Bearish for 1.2650/80 (still within bearish channel and below DMA200)
Minor trend: Mixed (down / up market)
Europe order book: (Interesting)
Stop loss: 1.2705/690, 1.2735/30, 1.2755/50, 1.2785/75, 1.2800/790, 1.2885, 1.2900/10 and 1.2920/30
Limit: 1.2705/690, 1.2755/50 and 1.2800/790
Technically, E$'s inability to break new ground yesterday topping off only at 1.2864 would put pressure on this pair to restest recent low 1.2750. Intraday oscillators have turned lower again. For today, expected range 1.2730/40 to 1.2850/60. But refrain from getting too bearish when nearer 1.2700.
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| E$ Daily chart - Seeking to retest recent low of 1.2750 |
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