Japan and the US celebrate a local holiday today, which will keep both macroeconomic calendars empty and we expect a very slow market due to lack of market participants. On Friday, US Equities and Treasury yields surged to their highest for this October. A possible trade deal might be on the horizon after President Trump announced truce in US-China trade war after 2 days of negotiations. Market participants believe that an agreement could at least put a halt to economic contraction. The dollar will likely pullback and consolidate in today’s session gathering enough momentum for another push to the upside in the upcoming week.
The Dollar bulls faced a strong resistance level at 108.50, which is also the September highs, putting pressure on the buyers to take profits. The bears will attempt to retest the 108 level during today’s session. If the buyers will be able to hold it, and the previous resistance becomes support, then it will likely confirm that a possible push to the upside to retest the recent highs is just around the corner.
Support: 108 / 107.65
Resistance: 108.45 / 108.80