Dollar recovers mildly in quiet Asian session today, but there is no sign of a sustainable rebound yet. Most major pairs and crosses are staying inside Friday's wide range. Strong rally is seen in Japanese Nikkei today, but there is little reaction in FX. Trading could remain subdued with US and Canada on holiday. Focuses will turn to three central bank meetings this week, including RBA, BoC and ECB. Technically, our focuses will stay on 1.1907 key near term resistance in EUR/USD. Sustained break there will argue that whole correction from 1.2348 has completed and bring further rise back towards 1.2265/2348 resistance zone in the next few weeks. Similarly, firm break of 1832.47 resistance in Gold will also raise the chance that correction from 2074.84 has completed. Both developments, if happen, would seal the case for Dollar bearishness, at least for the near term. In Asia, at the time of writing, Nikkei is up 1.80%. Hong Kong HSI is up 0.51%. China Shanghai SSE is up 1.02%. Singapore Strait Times is up 0.29. Japan 10-year JGB yield is up 0.0052 at 0.047. |
