AUD/USD: 0.7790EUR/USD: 1.0760It was another volatile session, with the dollar taking another hit on the back of some dovish Fed comment and more soft data from the US, increasingly suggesting that no Fed rate hike is required in the immediate future. Equities were steady, while the big winner was oil, where WTI appears set to retest $60.00 pb. The focus today will be on inflation, where the CPI figures are due from the EU, US and also from Canada. The other highlight will be the Rts/Michigan Consumer Sentiment Index although there is little to be seen from Asia. Have a good weekend.
The Aud has been the star performer today, building on the gains seen prior to yesterday’s jobs data, by rising to a high of 0.7821 after the combination of some dovish Fed comments and more soft US data.
Currently back at 0.7790, the hourlies are rolling over after having become overbought and show some mild bearish divergence although the 4 hourlies suggest that this rally is not yet finished with.
It looks like being a choppy session, and with no local data due it could be late in the US session, after the CPI and Consumer Confidence that we see the real moves of the day.
Technically, bids are going to be seen at 0.7760, 0.7735 (both minor) and at the Fibo support at 0.7720 (38.2% of 0.7752/0.7821). Below here seems a bit unlikely in the near term, but below 0.7700, further bids would arrive at 0.7688 (50% pivot) and at 0.7655 (61.8%).
Dips currently look like buying opportunities and back above the session high, which will not be easy (0.7820: 38.2% of 0.8294/0.7552), will head towards 0.7884 (26 March high), 0.7904 (25 March high) and to the trend high at 0.7937.
Jim LanglandsFX Charts www.fxchartsdaily.com
