US Dollar Likely to Fall Further as Markets Dangerously Complacent Euro Crisis Deepening but Currency May Enjoy Further Bounce Japanese Yen Weakness To Accelerate, Breakout On The Horizon Sterling Outlook to Hinge on BoE Minutes- Key Inflation Data on Tap Gold Eyes G-20 Meetings in Paris for Direction Canadian Dollar Tied to S&P 500, G-20 and US Growth Outlook in Focus Aussie Fundamentals Shift after Employment Data, Look to RBA New Zealand Dollar Rally To Falter Should Global Growth Deteriorate
There was no silver lining in the dollar’s performance this past week. Behind the greenback’s hefty selling pressure against most of its benchmark counterparts, we were reminded of a fundamental reality: we need a real, fundamental reason to hold the US currency – much less bid it higher.
The Yen crosses are nearing price and indicator levels that need to hold in order for the larger trend to still be considered down.
The dollar remained heavy in early US trade as the risk rally resumed with the Aussie surging more than 1.2%. Meanwhile the yen as pare its recent gains as intervention threats begin to circulate amongst investors.
Triangle Breakout: The USD/JPY is in a bullish continuation today. After a sharp rally to 77.48, the market had a very sharp pullback as well. This pullback however, was held above the 61.8% retracement at 78.75. This also showed the 200-period simple moving average as support as well
Crude oil and gold prices rose as the safe-haven US Dollar weakened amid an upswing in risk appetite but gains may prove fleeting ahead of the weekend.
The Australian Dollar and Euro rally continued as optimism that the G-20 summit this weekend could provide a credible rescue plan for Europe which would prevent global financial markets from crashing.
EUR: Doji Candle Hints Rally Fading JPY: A Bullish Breakout Taking Shape? GBP: Bearish Turn Hinted Below 1.58 CAD: Looking for Buying Opportunities AUD: Signs of Weakness Emerge at 1.02 NZD: Turn Lower Brewing Near 0.80
Increased efforts to address the sovereign debt crisis propped up market sentiment on Friday, and the rise in risk appetite may carry into the following week as the Group of 20 pushes for international assistance.