[B]Daily Fundamental Dose: 28-September-2016[/B]
Hello Traders,
Tuesday provided a sigh of relief to US Dollar Bulls as seven-year high print of US CB Consumer Confidence gauge, coupled with hawkish statement from an FOMC member, helped lift global market trust on the greenback, fueling the US Dollar Index (I.USDX) towards printing first positive daily closing of the week. The EUR remained on the downside after the U.S. Department of Justice demanded $14 billion from Germany’s largest lender, Deutsche Bank, while the GBP remained a bit up of short-covering. Further, the AUD, NZD and CAD maintained their strength due to investors’ run for higher interest-bearing currencies while JPY seemed sluggish as sustained strength of the Japanese currency was perceive as damaging the export-oriented economy. Moreover, the Crude prices dipped as tension between Iran and Saudi Arabia kept favoring another failure of global oil-producers to agree on production-freeze when the IEA and Goldman Sachs are already holding bearish bias for energy sector.
Investors maintained their favor for the US Dollar on Wednesday when some of the key releases, like Durable Goods Orders and Fed Chair’s testimony, are scheduled for publish while the Gold and JPY kept weakening due to renewed optimism reducing the safe-haven demand. Additionally, the GBP, NZD and CAD are also nursing losses with the recent run in USD cutting down commodity prices and the broader pessimism of UK but the AUD failed to dip on continued rush for the higher-yielding currencies.
Looking at the economic calendar, the Durable Goods Orders are likely to disappoint global traders’ fraternity with shrinking order figures while a dovish comment in the Fed Chair’s testimony might fade recent market confidence and could again drag the greenback towards south. Further, Crude Oil inventories and latest updates from Algeria can continue offering liquid sessions for energy market participants with a dip in stockpile expected to magnify immediate south-run of oil prices. Also, there prevails an informal speech from ECB President, Mario Draghi, which might help predict EUR moves.
On the technical side, the EURUSD’s break of 1.1200 indicates its further dip to 1.1155-50 before challenging the 1.1120-25 horizontal region while 1.1230 & 1.1250 can offer intermediate halts during the pair’s reversal prior to fueling it towards near-term descending trend-line, at 1.1260 now. GBPUSD is struggling with 1.3030 resistance, breaking which it could rise to 1.3080 and 1.3100 with a pullback below 1.2980 support, which is more likely, dragging the quote to 1.2900 mark again. For USDJPY, 101.00 & 101.30 can act as immediate resistance with 100.00 being nearby support while 0.7715-20 becomes an important resistance for AUDUSD with 0.7650 being nearby support to observe and the NZDUSD signaling more of the downside towards 0.7250 & 0.7220 with 0.7315-20 TL being important resistance to watch. Additionally, Crude prices might struggle between 43.70 – 45.10, with more downside expected towards 43.00, in case of higher inventory figures while Gold’s recent dip below 1330 favors quick test to 1318-19 area with 1342-43 acting as nearby important resistance.
Have a nice trading-day …………