US Dollar: Although the dollar is coming off of a multi-day recovery bounce, there does not seem to be a definitive trend present in either direction. Some of the dollar strength was justified by better than expected US scheduled data yesterday and we are surprised that the dollar is trading weaker this morning in the face of European inflation readings overnight. However, expectations for a rather active US report slate call for soft results and the trade was made aware yesterday of further softening of foreign investment for US financial instruments. Resistance is building around 8975 and we can’t rule out a chop down toward consolidation low support of 8915.
Euro: Despite weakness in the dollar, the euro has only managed a modest short covering rally, it has also forged a fresh lower low in the early going and there are some suggestions that euro zone growth is generally slackening. Fortunately for the euro bulls, the US scheduled report slate might provide further short covering gains, but resistance comes in at 12435.
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US Dollar Jun ’18 Daily Chart
Euro Jun ’18 Daily Chart