FOREX Market News
The expectations of higher rates coming on the back of increasing inflation and growth continues to push Dollar higher and nothing more than occasion pause can be hoped for now.
The Dollar Index (99.92) has tested our target/resistance of 100 sooner than expected. The area of 100.00-50 has been the resistance since early 2015 and a break above 100.50 may push Dollar to 102.00-104.00 in the near to medium term. The immediate bullish momentum remains intact above the support of 99.70 and 99.10.
Dollar-Yen (108.23) has ended the minor correction just above the support of 105.80 and has shot up for the higher levels of 111. As long as any interim correction remains limited to 106, the chances of continuation of the rise to 111 stay strong.
The Pound (1.2492) is facing bear pressure at the higher levels close to 1.27-28 but still requires a break below 1.2450-30 to extend the correction to 1.2350-00.
Euro (1.0752) has broken below our support of 1.0820 and tested 1.0707, an 11-month low and may take a pause here if Dollar index remains below 100.50 for a couple of sessions.
The Aussie (0.7567) is turning out to be one of the strongest currencies as it defies the Dollar onslaught. The break of the support 0.7550 couldn’t bring the bears in play and new range may be forming in 0.7450-0.7750 in which the currency may spend a few more days with no bias.
COMMODITIES Market News
The overall fall in commodities seem to be over for now and we could see some up move in precious metals and crude. Copper could come off a bit, pausing its crazy rally for now. Near term is bullish for major commodities except Copper.
Gold (1225.12) is getting some support from the 100-week MA near 1207.5 and if that holds, we may see a bounce back towards 1250 in the coming sessions. Below that, 1200 is an important support which may not be broken just now. Near term may see some recovery.
Silver (17.03) may also move up towards 18 and higher as support at 16.60 may hold in the near term.
Copper (2.5530) has come down sharply, after recently testing 2.73 on the upside. A much needed pause could be visible this week as Copper may stabilize and trade within the 2.60-2.40 region.
Brent (45.19) has bounced back from support near 43.44 and could possibly move up towards 46-47 in the near term. WTI (44.18) has also bounced from levels near 42.20 and may start moving up in the coming sessions.