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The dollar has been very strong, up 9 days in a row and trying to close the week with a 10th. It's trading at 13+ year highs, but has certainly become vulnerable to a setback or consolidation phase at the least. EURUSD is trying to hold on to the trend-line running back to the March 2015 lows. A bounce looks to be on its way. GBPUSD is particularly interesting for a counter dollar trade, as cable is showing good relative strength among the dollar pairs. AUDUSD remains in the hole, hasn’t found good support yet, keeping it vulnerable.
Oil is thus far acting as we outlined the other day and may soon find itself making another leg up towards a retest of the broken Feb trend-line.
Gold is nearing our short-term target of $1200, while silver still doesn’t have any significant support until around the 16/15.80 mark. The short-side below 17 remains attractive until support is met.
Looking to global indices, the DAX is caught between strong resistance surrounding 10800 and support at the trend-line rising up from the June lows. The FTSE 100 is quite weak, relatively speaking, as it has failed to garner the same buying interest other indices have since the US presidential election. It sits precariously on support and is a go-to short should it break, especially if we see a broader pullback across the board. The S&P 500 is nearing record highs, with buyers stepping in on any hint of weakness. It’s difficult to be a buyer as highs approach, but being a seller won’t be any easier until we have good reason – i.e. rejection at resistance.
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---Written by Paul Robinson, Market Analyst
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