The Dollar was once again favored against the Yen yesterday, after it initially dipped as US yields fell on the ECB’s announcement. However, risk-on sentiment remained the main market driver as US equities rallied towards the all-time highs, pushing the pair higher to score yet another six-week high. Nevertheless, the pressure remains on the greenback after Trump’s latest tweet, calling once again for another rate cut from the Fed by next week. Meanwhile, there is talk of an interim trade deal being put together by Chinese officials and US. If the trade optimism develops, the dollar will likely stay ahead for now as safe haven assets will remain under pressure.
The Dollar bulls keep grinding higher and higher every single day after the recent break from the consolidation formed a strong uptrend. Yesterday, the greenback reached as high as 108.29 but pulled back once again towards 108, attempting to print a higher low for another swing to the upside. The buyers will be eyeing 108.50 as their next target. The bears however, remain underwater, as they need to break below this recent uptrend to distort the market structure into their favor.
Support: 108 / 107.70
Resistance: 108.30 / 108.50