The Dollar surged yesterday after the European and US equities soared, following news that the Hong Kong stocks exchange made a $36.6 billion offer for London stock exchange. Meanwhile, US Treasury yields surged to their highest in a month, with the benchmark yield on the 10-year note hitting 1.75%. Furthermore, earlier in the Asian session, President Trump delayed tariff hikes on Chinese goods ahead of talks, as a “gesture of good will”, which the kept the pressure on the Yen. The Dollar will likely continue strengthening in today’s session, as long as sentiment remains positive and trade war headlines keep their constructive tone.
The Dollar bulls keep breaking higher and higher every single day after the recent momentum formed a strong uptrend. Yesterday, the Dollar took over 108 and reached as high as 108.16. The buyers will be eyeing 108.30 and 108.50 as their next targets. The bears however, remain underwater, as they need to break below this recent uptrend to distort the market structure into their favor.
Support: 108 / 107.80
Resistance: 108.30 / 108.50