G10 Currencies Take Advantage as Dollar Falls

The Greenback weakened against every single G10 currency, with the Dollar Index (DXY) slipping to a fresh one week look below 100.00 thanks to the renewed appetite for risk. Given how the DXY is coming under increasing pressure on the daily charts, a solid daily close below 100.00 could open the doors towards 98.90.

Alternatively, a technical rebound from 100.00 could inspire a move back towards 101.00 and 103.0.

Aussie explodes higher towards 0.6500

Appetite towards the Australian Dollar has jumped following positive news regarding the coronavirus developments in Australia.

The AUDUSD soared more than 1.5%, making the Australian Dollar the best-performing currency among its major counterparts today.

Looking at the technical picture, prices are bullish on the daily charts. A solid breakout above 0.6500 should trigger a move towards 0.6680. If prices are unable to break above the 0.6500 resistance, the next stop is south around 0.6270.

Same old story with British Pound

The fundamental drivers haunting investor attraction towards the British Pound remain intact.

Concerns remain elevated over the UK plunging into a coronavirus induced economic recession while there are many unanswered questions over Brexit. The British Pound is running on empty and running on fumes and running on borrowed time.

Looking at the technical perspective, the GBPUSD may approach 1.2500 in the short term as markets cheer Boris Johnson’s return to No 10 Downing Street. Should this level act as a stubborn resistance, prices could sink back towards 1.2200.

GBPJPY: Did somebody say breakout?

Over the past few weeks, the GBPJPY has traded within a wide 350 pip range with support at 132.00 and resistance at 135.50.

It looks like bears are winning the current tug of war with prices trading around the 133.00 level. Sustained weakness below this point should encourage decline towards 132.00. If this stubborn support level gives in, prices could tumble towards 130.20.

Commodity spotlight – Gold

It is no surprise that Gold has slipped amid the positive market mood. The metal has shed almost 1% today sinking towards $1715 and could extend losses if risk-on becomes the name of the game.

Looking at the technical, prices still remain bullish on the daily timeframe as long as $1675 proves to be reliable support. A technical rebound from the psychological $1700 level could spark a move back towards $1735 and $1750.

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