We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @GunjanJS: Declining growth rate in coronavirus cases hint that outbreak is subsiding, via JPMorgan https://t.co/phVNTWpZCM
  • South Korea confirms 41 additional #coronavirus cases, bringing total to 82 -BBG
  • 🇨🇳 CNY 5-Year Loan Prime Rate (FEB), Actual: 4.75% Expected: 4.75% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-02-20
  • 🇨🇳 CNY 1-Year Loan Prime Rate (FEB), Actual: 4.05% Expected: 4.05% Previous: 4.15% https://www.dailyfx.com/economic-calendar#2020-02-20
  • The #Euro may have more room to fall versus its major peers such as the US Dollar, Japanese Yen and British Pound. What is the technical picture of EUR/USD, EUR/JPY and EUR/GBP? Get your market update from @ddubrovskyFX here: https://t.co/M6fLA9g3BK https://t.co/9bSzv7ivVc
  • If you missed my coverage of the Australian jobs report where I discussed $AUDUSD, $AUDJPY, $AUDNZD and $AUDCAD, check out the recording on YouTube here - https://t.co/nZkHmgznFF
  • Heads Up:🇨🇳 CNY 1-Year Loan Prime Rate (FEB) due at 01:30 GMT (15min), Actual: N/A Expected: 4.05% Previous: 4.15% https://www.dailyfx.com/economic-calendar#2020-02-20
  • Heads Up:🇨🇳 CNY 5-Year Loan Prime Rate (FEB) due at 01:30 GMT (15min), Actual: N/A Expected: 4.75% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-02-20
  • RT @LiveSquawk: Australian Labour Force Report Jan https://t.co/NM4a8MXFxB https://t.co/hcl4lI7cEM
  • 🇦🇺 AUD Full Time Employment Change (JAN), Actual: 46.2k Expected: N/A Previous: -1.8k https://www.dailyfx.com/economic-calendar#2020-02-20
Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key Support

Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key Support

2011-10-04 14:56:00
Michael Boutros, Technical Strategist
Share:

Daily Winners and Losers

Dollar_Soars_as_Stock_Sell-off_Steepens-_Aussie_to_Tests_Key_Support_body_Picture_2.png, Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key SupportDollar_Soars_as_Stock_Sell-off_Steepens-_Aussie_to_Tests_Key_Support_body_Picture_3.png, Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key SupportDollar_Soars_as_Stock_Sell-off_Steepens-_Aussie_to_Tests_Key_Support_body_Picture_4.png, Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key Support

The euro is the top performer against a stronger dollar in North American trade, advancing more than 0.30% early in the session. The single currency has remained rather resilient in the face of a global sell-off in risk which continues to weigh on investor sentiment. The EUR/USD pair encountered strong support at the 1.3150 level in overnight trade an looks to test the 100% Fibonacci extension taken from the September 21st and 28th crests at 1.3255. The outlook for the pair remains weighted to the downside after Greece announced it will not meet its 2011 deficit target required to obtain the next EU/IMF tranche payment. As default concerns now approach critical mass it is likely the pair will come under increasing pressure, with a break below 1.3150 eyeing interim support targets at 1.3120, the 1.31-figure and 1.3050. Topside resistance stands at the 100% Fibonacci extension at 1.3260 with subsequent ceilings eyed at the 1.3310, the 76.4% extension at 1.3360 and 1.3420. Investors will be eyeing data out of the region overnight with German and EU PMI data on tap.

Key Levels/Indicators

Level/Indicator

Level

100-Day SMA

1.4176

50-Day SMA

1.4035

20-Day SMA

1.3620

2011 EUR High

1.4939

Upcoming Events

Date

GMT

Release

Expected

Previous

10/5

7:55

German Purchasing Manager Index Services (SEP F)

50.3

50.3

10/5

8:00

Euro-Zone Purchasing Manager Index Services (SEP F)

49.1

49.1

10/5

8:00

Euro-Zone Purchasing Manager Index Composite (SEP F)

49.2

49.2

Dollar_Soars_as_Stock_Sell-off_Steepens-_Aussie_to_Tests_Key_Support_body_Picture_5.png, Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key SupportDollar_Soars_as_Stock_Sell-off_Steepens-_Aussie_to_Tests_Key_Support_body_Picture_6.png, Dollar Soars as Stock Sell-off Steepens- Aussie to Tests Key Support

The aussie continues to be the worst performer an hour into US trade with the AUD/USD pair breaking below the 9475 support level in overnight trade. As expected, the RBA left rate unchanged last night at 4.75% citing increased risk future rate cuts should global financial turmoil persist. Central Bank Governor Glenn Stevens went on to state that global markets continue to be “very unsettled,” as growth prospects weaken while inflationary pressures within Australia softened. The remarks saw interest rate expectations fall even further with Credit Suisse overnight swaps now factoring in 161 basis points in rate cuts over the next twelve months. Accordingly, the aussie has gone on the defensive, falling more than 1.15% early in US trade. Interim support for the aussie rests at 0.9410 with subsequent floors seen at the key 38.2% long-term Fibonacci extension taken from the October 2008 and May 2010 troughs at 0.9360 and the 0.93-figure. Topside resistance is now eyed at 9475 backed by 0.9540 and the 96-handle.

Key Levels/Indicators

Level/Indicator

Level

100-Day SMA

1.0513

50-Day SMA

1.0366

20-Day SMA

1.0064

2011 AUD High

1.1079

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report or receive his daily reports, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter @MBForex.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.