The dollar has rallied the past two weeks, off support at 92.41 after failing to break resistance at 93 the first week of May. Although US fundamental data has shown a possible slow down, the market has been driven higher on the outlook that European growth has slowed even more. In this week’s trade we have seen the 94.00 level as some resistance. With US durable goods being reported today look for possible pullbacks. Barring any potential surprises, look to buy pull backs as the market’s trend remains higher. Support comes in at 93.54 and a close below 93.20 should reverse the short-term trend to the downside. Resistance comes in above Wednesday’s high of 94.12.
The euro continues its trend lower as economic data shows more slowing. The Italian debt outlook adds more pressure to the already weak currency. Even with a possible pullback in the dollar today on US durable goods, the euro market has been ignoring slight supportive news as of late. The euro sharply broke support of 1.1785 on Wednesday and has started today’s trade falling to new lows. Momentum studies are increasing from oversold levels and would support a move higher if resistance can be broken. Resistance comes in at previous support of 1.1785 with support at 1.1710 and 1.1680.
US Dollar Jun ’18 Daily Chart
Euro Jun ’18 Daily Chart