Euro finally breaks through 1.2 handle against Dollar, as the greenback's selloff resumes today and accelerates broadly. Nevertheless, Euro is overwhelmed by others, in particular Sterling, which is the strongest for now, followed by Swiss Franc. Commodity currencies are somewhat lagging behind too, partly as they're facing some pressure against Yen. Overall, the Dollar bearish tone is set up well, and will likely continue. Technically, EUR/USD's break of 1.1988 resistance adds to the case that correction from 1.2348 has already completed at 1.1703. Further rally would be seen back to 1.2242/2348 resistances zone. Similarly, GBP/USD's break of 1.3917 resistance should indicate completion of correction from 1.4240 at 1.3668. Further break of 1.4000 should confirm and target a rest on 1.4240 high. A focus now is USD/JPY's reaction 38.2% retracement of 102.58 to 110.95 at 107.75. Sustained break there will negate near term bullishness in the pair, and extend the whole pattern from 101.18 with another falling leg. In Europe, currently, FTSE is down -0.09%. DAX is down -0.15%. CAC is up 0.35%. Germany 10-year yield is up 0.035 at -0.224. Earlier in Asia, Nikkei rose 0.01%. Hong Kong HSI rose 0.47%. China Shanghai SSE rose 1.49%. Singapore Strait Times rose 0.25%. Japan 10-year JGB yield dropped -0.0044 to 0.086. |
