The Dollar continues to lose steam in an unenthusiastic risk sentiment, in light of a potential delay in the signing of the US-China trade deal. A US administration official said yesterday, an interim US-China trade agreement might not be completed in time for signing in Chile next month as expected. This spooked the markets and sent Equities tumbling down. Moreover, the pair’s upside remains capped as traders await the FOMC decision. However, the bears remain cautious, as the US dollar could likely rebound if the Fed announces a rate cut pause.
The Dollar-Yen pulled back yesterday as the bulls found resistance at the 109 level. However, market structure remains bullish as the channel remains intact; therefore, a bounce to retest the recent highs is a very likely scenario. However, if the Dollar loses momentum and breaks below the 50-day moving average, then the bears will likely take over for a possible deeper pullback.
Support: 108.75 / 108.50
Resistance: 109.05 / 109.30