European majors are maintaining their upward momentum against the Dollar, leveraging last week's rally and finding additional support in the unexpectedly positive Eurozone investor confidence data. Yet, while the data provided a glimmer of positivity, the market remains guarded, unwilling to fully commit to the narrative of an economic rebound. Meanwhile, Australian and New Zealand Dollars are surrendering some of their recent gains as traders pivot their attention to the upcoming RBA interest rate decision. With the central bank expected to hike rates, traders are holding their bets in anticipation of volatility. Yen, on the other hand, finds itself on softer footing following dovish remarks from BoJ Governor. Across other markets, European stocks have shown signs of hesitancy, and US futures are hovering without a clear course, as investors seem to be on standby for a stronger signal. On the commodities front, Gold struggles to find direction as it lingers around the pivotal 2000 psychological resistance. Bitcoin consolidates, maintaining its position near 35k mark. Crude oil has seen a slight uplift as OPEC heavyweights Saudi Arabia and Russia reaffirm supply cuts, possibly hinting at a tighter oil market ahead. From a technical standpoint, pressing an important cluster resistance at 0.6510 (38.2% retracement of 0.6894 to 0.6269 at 0.6508). Decisive break there will raise the chance that whole down trend from 0.7156 has completed with three waves down to 0.6269. That would open up further near term rise to trend line resistance at around 6.7. However, rejection by 0.6510 will retain near term bearishness for another fall through 0.6269 at a later stage. With the RBA's rate decision on the near horizon, the currency pair's response will be telling, possibly setting the tone for its near-term direction. In Europe, at the time of writing, FTSE is down -0.05%. DAX is down -0.19%. CAC is down -0.37%. Germany 10-year yield is up 0.0660 at 2.714. Earlier in Asia, Nikkei rose 2.37%. Hong Kong HSI rose 1.71%. China Shanghai SSE rose 0.91%. Singapore Strait Times rose 1.17%. Japan 10-year JGB yield is down -0.0419 at 0.874. |
