Spot moved nicely lower yesterday as the US Dollar (USD) tone stayed soft, the White House stayed relatively quiet in tariffs and stocks picked up a bit more ground, giving high beta FX a broader lift. The USD is now ‘only’ one standard deviation above FV (1.4119 today), having spent most of last week trading near two standard deviations above equilibrium, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Resistance is at 1.4310 and 1.4350
“Spot’s push under 1.4340/50 support leaves the USD looking prone to more technically-driven weakness. Losses are stabilizing around the 1.43 point, right where long-term trend support off the September USD low sits currently.”
” A daily close under 1.43 trend targets a push to 1.4240, the early March low and potentially to the 1.41 area (50% retracement of the USD September/February rally sits at 1.4107). The USD continues to enjoy solid trend momentum on the daily and weekly studies which restrain USD losses for now, however. Resistance is 1.4310 and 1.4350.”
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