USD Strength 

USD Weakness Helps EUR, GBP and JPY

Asian indices finished higher today for the second day in a row on dovish Central Banks across the globe. The Nikkei225 finished 0.60 percent higher to 21,462 the Hang Seng benchmark in Hong Kong, finished 0.98 percent higher at 28,476. The Shanghai Composite finished 2.26 percent higher to 2,983, while in Singapore the FTSE Straits Times index finished 0.77 percent higher to 3,313.

XAUUSD Hourly (H1) Chart

Australian equities finished higher for the third day and hit fresh 11 year highs, with the ASX200 adding 39.3pts or 0.59 percent to 6687.4. The index is just shy from hitting its all-time high level from November 2007 before the financial crisis.

European session started higher today as low-interest rates support stock bids across the globe. DAX30 is adding 0.74 percent to 12,399 CAC40 is 0.59 percent higher at 5,550 while the FTSE MIB in Milan is trading 0.70 percent higher at 21,372. The London Stock Exchange is 0,23 percent higher to 7,420 amid Brexit uncertainty.

In commodities markets, crude oil continues the rally that started from recent low up to 55.61 despite geopolitical tensions around the globe. Brent oil also adds one dollar to $63,54 per barrel as major oil producers have yet to agree on adjustments on output. Gold breaks higher at 1,383 a level that we haven’t seen since 2013, as bulls are in full control. The precious metal holds above all the major daily moving averages and strong resistance will be met at 1,393 the high from the Asian session.

In cryptocurrencies market, bitcoin (BTCUSD) continues higher today at 9,302 approaching the yearly high, the daily low for BTC was at 9,126 and the daily high at 9,354. Immediate support for BTC stands now at $9,000 round figure while next support stands at 8,500 the previous week high. On the upside, strong resistance now stands at 9,477 the high from Monday while I expect extra pressure from sellers at 9,600 and then at 10,000. Ethereum (ETHUSD) trades flat at 268, with capitalization now to 28.7 billion, on the upside the immediate resistance stands at 287 the recent high while the support stands at 250 round figure, Litecoin (LTCUSD) also trades flat to 135. The crypto market cap now stands above $284.0B.

On the Lookout: Yesterday the Fed left the interest rates unchanged but in the minutes sounded more dovish than the last policy meeting. Earlier today ECB’s Vice President Luis de Guindos noted that Eurozone economic risks clearly tilted to the downside. Bank of England expected to leave its bank rate at 0.75% in its policy meeting later today.
The New Zealand Gross Domestic Product, year on year, came in at 2.5%, better than analyst’s forecasts of 2.4% in the first quarter of 2019.

In macro news from America, we await the Philly Fed Manufacturing Index, weekly Jobless Claims, and Q1 Current Account. In Canada will be released the ADP Employment Change figures.

Trading Perspective: In forex markets, USD trades lower at 96.22 after the Fed policy meeting, while the Aussie dollar continues higher for the second day at 0.6912, while Kiwi also trades higher at 0.6583.

GBPUSD trades higher today breaking above 1.27 as it continues the rebound from 1.25, getting a hand from dovish FED. Major support now stands at 1.2641 (200h MA) which if broken might accelerate the slide further towards 1.26 round figure. On the upside immediate resistance now stands at 1.2827 the 50-day moving average while more offers will emerge at 1.2931 the 200-day moving average.

In Sterling futures markets the open interest shrunk by 35,000 contracts while the volume increased by 16.100 contracts.

EURUSD trades higher at 1.13 amid broad USD weakness. The pair broke above the 100-day moving average and that attracted extra bids that pushed the pair up to 1.13 round figure resistance. A convincing break above 1.13 can lead prices to 1.1353 the 200-day moving average. Support now stands at 1.1250 round figure, while more bids will emerge at 1.12.
In euro futures markets, the open interest shrunk by 54.500 contracts while volume shrunk by 77,000 contracts.

USDJPY is under pressure for one more day down to 107.50, as traders dumping USD across the board. The pair hit the low at 107.46 and the high at 108.13. The pair will find support around 107.43 daily low and then at 107. On the upside, immediate resistance for the pair now stands at 108 round figure.

In Yen futures markets, the open interest shrunk by 37.800 contracts while volume also shrunk by 34.500 contracts.

USDJPY Hourly (H1) Chart

USDCAD is pressured today down to 1.3212 as the sharp rebound in crude oil prices, Canada’s main export item seems to have added further strength in the Canadian Dollar (CAD). The pair will find immediate support at the 200-day moving average around 1.32 while extra support stands at 1.3150 round figure. On the upside immediate resistance now stands at the 1.33 zone before an attempt to 1.3450 recent high from 31st May.