$1.16735
Short-term fluctuations in the US dollar heading into the weekend, as bond markets, Middle East headlines, and confusion reign.
The Euro has been slightly positive in early trading on Friday as we see a little bit of a dip in US interest rates. And of course, traders are still reacting to the idea that the United States is buying back more of its bonds. But it’s not quantitative easing, at least not yet.
So that being said, it’ll be interesting to see how this actually works out. And of course, we have to watch the situation with energy in Europe, which is going to be a big story later this year at this rate. But in the short term, I’m watching to see if we pull back towards the 1.1660 level and if there’s any bounce. If there is, that could be a short-term buying opportunity that I would take, given recent price action.
The Australian dollar has broken above the crucial 0.7150 level, an area that I have marked on longer-term daily charts as being an area of interest. If we pull back and bounce from there, I’d be interested in going long for a short-term trade. I don’t know how much further I want to push the Aussie to the upside, but as things stand right now, that could be a short-term setup I’ll be taking.
The British pound, it looks as if it is struggling to get above the 1.3680 level. A short-term pullback to the 1.3620 level and a bounce might be an entry for me if we get a drop and a bounce. If we don’t get that between now and the weekend, I may just sit on the sidelines in this particular pair. Overall, I have no interest in shorts against the British pound still.
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.