The Euro drives forward
Risk appetite continued to drive the Euro forward during yesterday’s session as the Dollar weakened across the board. The Dollar indexdropped yet again during the session but quickly retraced towards the
second half of the day. Even though Dollar weakness is expected to
continue one should observe the price action, yesterday’s session
formed a hammer like candle, something that could present a short term
reversal. To date the Dollar index is trading around recent lows, a
level that could act as support, should equities fail to follow through
from yesterday’s session.
On other Forex pairs,
recent momentum continued with the AUD, GBP and NZD all climbing
higher. On yesterday's video briefing we mentioned a potential setup
on the EUR/JPY. It is important to note that even though the trade did
follow through climbing by over 200 pips, the pair has yet to break it
prior high of ¥137.40. While this pair is now presenting early signs of
a break of its current bullish triangle pattern, the equity market
should continue to be observed, as this pair, similar to others, will
continue to take its cue from stocks.
Crude oil continued higher, closing the session above $67 per barrel on overall market momentum and a decreasing Dollar.
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