Forex technical analysis:
On Thursday, DXY remained stable overall, with non-U. S. Continues mixed, with the EUR rising slightly and GBP continues to recede. The overall strength of U.S. Economic data released overnight bolstered the Fed’s stance on a moratorium on interest rate cuts.
Economic data released overnight bolstered the Fed’s posture on a moratorium on interest rate cuts. Despite the EUR’s dominance in global financing, the EUR has not weakened further because of the considerable amount of investment-related inflows. INFLOWS OF EUR RELATED TO FOREIGN DIRECT INVESTMENT (FDI) HAVE REACHED THE HIGHEST LEVEL IN 20 YEARS. The current inflow and outflow of EUR appear to be in proportion, leaving EUR/USD in a tight trading range.
But a closely watched poll for Britain’s general election suggests Prime Minister Boris Johnson is on course to gain an outright majority. As long as the Conservatives gain a majority in the general election, the GBP could sweep away the gloom and rise sharply in the short term.
Forex fundamental analysis:
The DXY rebounded below 98.45 on Thursday, with a correction above 98.25 and closing at 98.34, meaning the USD short-term correction is likely to stay at a rally. If the DXY pullback is supported above 98.25 today, the quarry of the post-market rally will point to 98.45-98.50. Today, DXY short-term resistance at 98.40-98.45, short-term important resistance 98.45-98.50. DXY short-term support at 98.25-98.30, short-term important support at 98.15-98.20.
Thursday’s EUR/USD correction was supported above 1.0995, rebounding below 1.1020 and closing at 1.1009, meaning that the EUR/USD short-term rally is likely to stay on a correction. If EUR/USD bounces below 1.1020 today, the quarry of the post-market correction will point to 1.0995-1.0985. Today EUR/USD short-term resistance at 1.1015-1.1020, short-term important resistance at 1.1025-1.1030. EUR/USD short-term support at 1.0995-1.1000, short-term important support at 1.0985-1.0990.
Forex Trading Strategy Recommendations:
DXY: 98.25 Buy, 98.15 Stop Loss, 98.50 Take Profit
EUR/USD: 1.1020 Sell, 1.1035 Stop Loss, 1.0990 Take Profit
GBP/USD: 1.2880 Buy, 1.2850 Stop Loss, 1.2945 Take Profit
USD/CHF: 1.0000 Sell, 1.0015 Stop Loss, 0.9970 Take Profit
USD/JPY: 109.35 Buy, 109.20 Stop Loss, 109.75 Take Profit
AUD/USD: 0.6780 Sell, 0.6795 Stop Loss, 0.6750 Take Profit
USD/CAD: 1.3310 Sell, 1.3325 Stop Loss, 1.3270 Take Profit