The USD continues to grow sharply, whether the short-term can breakthrough remains to be tested

Forex technical analysis:

The dollar index moved up steadily as the latest U.S. Markit purchasing managers’ index performed strongly, further evidence that the recent weakness in the U.S. The dream may be over in a depressed economy. The University of Michigan’s consumer confidence indicator, then climbed strongly to 96.8, indicating a surge in consumer confidence.

U.S. President Donald Trump signed a four-week spending bill that delayed a possible government shutdown until December 20, giving lawmakers more time to ferment out a full-year funding package for the fiscal year that began last month. Later on the news, DXY received a boost, extending earlier in the day’s rally. In improver, the relatively positive comments made by Minneapolis Fed President John Cashcane and Cleveland Fed President John Meister on economic growth and inflation also spurred USD buying, with DXY stabilizing above the 98 mark.

In addition, U.S. rare coins are very portable. President Donald Trump told Fox News that the two positions are “very close” to a trade agreement, noting that “we have a good chance of reaching an agreement.” In early October, the two countries agreed to work together on a so-called “first phase” trade deal, but were divided over whether the elimination of existing tariffs should be part of the agreement. Nevertheless, the recent resurgence of optimism is expected to help the market risk sentiment stabilize, thereby helping risk-related currencies such as AUD to rebound.

Forex fundamental analysis:

The DXY’s correction on Friday was supported by a correction above 97.80, rising below 98.35 and closing at 98.28, meaning the USD short-term correction is likely to stay up. If the DXY correction is supported above 97.95 today, the target for the post-market rally will be 98.50-98.65. Today, DXY short-term resistance at 98.45-98.50, short-term important resistance 98.60-98.65. DXY short-term support at 98.10-98.15, short-term important support at 97.95-98.00.

EUR/USD rebounded below 1.1090 on Friday, falling above 1.1015 and closing at 1.1020, meaning the EUR/USD short-term rally is likely to stay down. If EUR/USD rebounds today at 1.1065, the target for the market will fall at 1.0995-1.0970. Today EUR/USD short-term resistance at 1.1040-1.1045, short-term important resistance at 1.1060-1.1065. EUR/USD short-term support at 1.0995-1.1000, short-term important support at 1.0970-1.0975.

Forex Trading Strategy Recommendations:

EUR/USD: 1.1065 Sell, 1.1105 Stop Loss, 1.0995 Take Profit

GBP/USD: 1.2895 Sell, 1.2935 Stop Loss, 1.2795 Take Profit

USD/CHF: 0.9940 Buy, 0.9905 Stop Loss, 1.0000 Take Profit

USD/JPY: 108.40 Buy, 108.10 Stop Loss, 108.90 Take Profit

AUD/USD: 0.6765 Buy, 0.6740 Stop Loss, 0.6815 Take Profit

USD/CAD: 1.3315 Sell, 1.3355 Stop Loss, 1.3235 Take Profit

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