After weeks of negative results, like bears to honey you saw them flurry. But you can’t keep a strong bull down. After positive NFP results we have seen the dollar strengthening against its major counterparts. But why the continued trend? A stall in the next fiscal package meaning lower US fiscal spending bring in a stronger US dollar. This and unemployment handouts decreasing to $400 a week has given traders some engouragement in the greenback. We have also seen corona cases fall below 50,000 per day. Could that be due to more testing? Ask President Trump he will tell you.
Momentum in the dollar is driving Euro down. All the bear have to look at are the technicals to get them through the day. Look for the pair to his 1.1730 and a break beyond that to 1.1700.
For the Bull should they be so lucky, consider an initial target of 1.1755 followed by 1.1810 should it break resistance.
One currency which remains strong against the greenback is the Aussie. Testing highs of 0.7126 and edging closer to 0.7257. Look for support at 0.731 and 0.6905.
the correction is well and truley here. Gold has dropped below $2000 a number it struggled to break. Now sitting at $1,990. This coming back to the strengthening dollar followed by some profit taking. Let’s see where it consolidates before moving further on the yellow metal. A sit on the fence might not be a bad place to be right about now.