The dollar unexpectedly marched higher on Tuesday after the oil prices fell again and the US stock indices managed to advance. There was little impact from news that the index of pending home re-sales fell 4.7 percent in June following an upwardly revised 7.1 percent gain in April. It's summer time and the market is very unclear - but the dollar should attempt to pad its gains on Wednesday.
Euro/dollar Euro/dollar fell on Tuesday, but was stuck in an inside range. My model remains short, which is good since the pair remains below the former rising trendline. Expect choppy trading.
Below 1.5635, support remains at 1.5605. The next good level is at 1.5685. Below 1.5630, further support remains at 1.5575.
Immediate resistance is still at 1.5735. Above 1.5820, euro/dollar faces key resistance at 1.5905.
Sterling/dollar Sterling/dollar fell further on Tuesday, but got stuck in an inside range. My model remains short and the downside bias continues, but choppy trading should continue.
Below 1.9710, support is now seen at 1.9605. Distant support remains at 1.9540.
Initial resistance is seen at 1.9745. Above 1.9795, cable has resistance is at 1.9865. Distant resistance follows at 1.9908
Oscillators are declining.
NEAR-TERM: Mixed with downside bias MEDIUM-TERM: Mixed LONG-TERM: Mixed
Dollar/Swiss franc Dollar/Swiss rallied to a 1 ?-week high after forming an outside range on Tuesday. Expect further choppy trading, but my model remains long.
Above 1.0350, resistance remains at 1.0415 and 1.0450. Distant resistance comes at 1.0540.
Initial support is now seen at 1.0305. The next level is 1.0215. Distant support is seen at 1.0166.
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