Markets showed a bit of action in trade yesterday and for the most part, it was the commodity currencies that have been moving.
The USD/CAD, NZD/USD and AUD/USD have all found some momentum and they have all been strong against the USD. The big rally in Crude Oil managed to pull back, but the CAD has still got some strength to it.
Both the AUD and NZD have been some of the bigger movers and have made a break towards the overhead resistance levels. Like I mentioned yesterday both appear to have a bit of room to move to the upside although the fundamentals are pointing to weakness versus the USD.
USD to Find Support
The DXY has been on the decline, but I think it’s now time for us to get a bit of a rebound. We tagged 93.00 which is a nice support level and I feel that we might be putting in a base. Just below current levels, 92.60 has provided plenty of support and that might well be the bottom again assuming we can’t hold up here.
We might not be at a point where we can rally hard, given the low liquidity, but if we can bottom out, this might be a time to start positioning for a longer-term up move.