Markets on Thursday: The USD Hits Resistance
Rowan Crosby • 1 min read
Sure enough, just as we were getting bullish on the USD, the Greenback decided it was time for a reversal. The sell-off was small, but it appears the resistance above might be tougher to navigate than first thought.
Wall Street is giving Asia a soft lead this morning as regulators are looking to crack down on tech. The NASDAQ therefore copped the worst of and should put some pressure on tech in Asia today.
Forex markets were busy and we saw moves in the GBP on positive brexit news. While the turnaround in the USD helped the AUD/USD and NZD/USD after both were taking some serious heat. While the BOC was in line with expectations and focus quickly moved back to NAFTA.
API inventories were out late which showed a draw ahead of the official numbers which are out today.
The USD is Battling
The DXY ran into the support turned resistance level at 95.50 but that’s where the sellers stepped up.
So for now, that is the level that we have to navigate. 95.00 will provide some support, but if the sellers take control, expect a flush back down to 94.50.
Payrolls on Friday are now shaping up to be the main factor here that will decide the direction of the USD.