US Dollar in decline again
Tuesday 18 August 2020
More of the same as we enter Day 2 of another trading week anmd we've seen further USD declines, softer risk plays and Gold back on the march higher again amid the same backdrop scenarios.
GBPUSD held 1.3080 yesterday helped by some 1.3090 option expiries and we've since broken up through 1.3125 and 1.3150 to test recent highs around 1.3170 as the Greenback remains soft.
EURGBP found support into 0.9030 but rallies since have failed at 0.9070 so far and made the round trip back to 0.9030 as we continue to range. GBPJPY found a cap at 139.80 this time amid some further USDJPY decline and softer risk but supported into 138.60 for the moment.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range. Brexit trade talks in focus again this week.
USDJPY finally broke down through 106.30 then 106.00 and since found the momentum to test 105.50 while EURJPY found sellers at 126.20 and testing 125.30 again as I type amid the softer risk plays/JPY demand.EURUSD is testing 1.1900 again after holding 1.1830 then 1.1860 and remains underpinned as I warned yesterday amid the softer USD tones. USDCHF failed at 0.9100 this time as EURUSD rallied and with EURCHF still ranging with the SNB lurking and since back down to look at 0.9030.
AUDUSD found support at 0.7160 this time and chewed through 0.7200 to post 0.7230 as I type. USDCAD capped at 1.3250 with the help of those expiries but found support below 1.3200 again before rallying on news that FM Morneau had resigned but since back down to 1.3160 amid the softer USD.
Markets are ever-fickle so don't forget to contact me if there's areas of trading these markets that you might need some further help with.
Let's continue to be careful out there in all things.
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