Markets on Friday: The USD Tumbles But Support Looms
Rowan Crosby • 1 min read
Markets were busy for what is traditionally a quiet period of the year. For me, the story continues to be the USD and its decline.
It really feels like a matter of buy the rumour, sell the fact. Ever since we’ve had tax reform in the US make its way through, markets have actually started to slow. We’ve seen the same thing in the equities with the SPX slowing down after really make a big breakout. And the USD has followed suit.
The weakness in the USD has helped the AUD and NZD continued to climb along with the EUR. The USD/CAD and the USD/CHF, fell away as the weakness got the better of them.
USD to Find a Base
I spoke yesterday about the potential support areas of 93.00 and 92.60. We broke through 93.00 without too much fuss. However, we are now right at 92.60 and I’m looking for a base to start forming here.
I don’t want to be the guy trying to pick the bottom the whole way down, I just feel the USD has been on a slide that might be overdone. So with that in mind, let’s keep watching the price action. If we can see some buying and we start turning higher than I think we might have cause to be a little more bullish on the USD.