Although we could see disappointing durable goods data on Wednesday from the United States, US dollar corrected after short-term drop and dragged down so-called aussie to intraday low from $0.79 level. Another Federal Reserve representative, Charles Evans spoke in London, seeing no compelling reason to raise rates sooner as he needs to see inflation rising firstly, then turn to tightening policy. But he added that despite slight negative impact of stronger dollar on economy, oil price drop helped consumers and offset dollar’s effect. We may expect rate-hike speculation to drive dollar for some time, as markets are still cautious about firstly so-much anticipate tightening in June of this year. As for technical analysis, albeit $0.79 seems to be a good point for take profit of long positions, we prefer resistance level at $0.7887. Further stronger level could be seen at psychological $0.80. As for supports, we can see one now being tested, at $0.7841, or later at $0.7770, re $0.7612.
Learn more about us at Forex Expo Bratislava in May 20-21, 2015.
Learn from Swissquote’s Peter Rosenstreich, Sberbank’s Vladimir Vano or ABAS FX’s Anton Bittner there.
Contact us at hello@goforex.eu
