Look to Fade Rallies in USDPosted 11/08/2018 8:52AM CT |
The dollar is showing some strength early on this morning, but until the December contract breaks above 9628, the strength will not negate the downward bias that’s been plaguing it since the last trading day of October. However, don’t be surprised to see the Fed meeting lift the dollar this morning. On the contrary, expectations for ongoing claims to show minimal change, fails to add new economic hope from yesterday. Support comes in at 9555 and 9512, with resistance at 9634 and 9671.
The Euro is trading lower today and this is probably the result of the overdone compacted rally yesterday and the currency is probably held back as a result of a narrowing of the German trade surplus. While the markets were once again presented with ideas that the exit might be possible soon, the trade has basically become immune to such delays. Support is seen at 114.1500 and resistance is at 115.3000.
U.S. Dollar Index Dec ’18 Daily Chart
Euro FX Dec ’18 Daily Chart