Dollar surges across the broad in European session. At this moment, there is no apparent trigger for the move yet. A possiblility is that traders are back from long weekend in the US. No matter what, there are a few points to note:
- GBP/USD’s break of 1.2844 minor support suggests completion of corrective rebound from 1.2661 at 1.3042. The pair is now heading back to revisit 1.2661 low.
- USD/CAD moves further away from near term channel resistance. The development suggests that correction from 1.3385 has completed at 1.2886 already. More importantly, 38.2% retracement of 1.2061 to 1.3385 at 1.2879 was defended and the up trend from 2017 low at 1.2061 is kept alive. Break of 1.3173 will likely bring retest of 1.3385 next.
- AUD/USD’s post RBA recovery was very very brief. Break of 0.7165 temporary low indicates down trend resumption. Next target is 100% projection of 0.7452 to 0.7201 from 0.7361 at 0.7110.
- The focuses will now be on 1.1529 and EUR/USD and 111.82 in USD/JPY. Break of these two levels will further affirm Dollar’s underlying strength.
