Tuesday, June 18, 2013

US dollar is recovering

US dollar has been recovering for the past few days. It is mostly strong against commodity currencies: aud/usd, nzd/usd and usd/cad. However, today after GB economic news came it also strengthened against British Pound. US Canadian dollar pair looks really interesting. It is sort of moving  around in circle after falling for some time and at the moment in order for the bullish sentiment to be confirmed the pair has to clear out 1.0250 resistance. 

However, if you look from the perspective of technical analysis it definitely looks like usd/cad has found its support. One thing that can change the technical picture is the upcoming rate decision (FOMC) on Wednesday. I may add that technically all currency pairs seem bearish against the greenback, so if you think that eur/usd and gbp/usd will rise and usd/chf fall, you’d better think again. These European currencies are way overbought against US dollar and the time has come for them to go down. Be patient though. Wednesday news releases may change the entire technical picture.