 The forex markets are still engaging in corrective trading in Asian session today. Despite stronger than expected job data, Aussie trades lower following mild risk-off sentiment. Kiwi, Loonie and Sterling are are softer. On the other hand, Dollar, Yen and Swiss Franc are the firmer ones, while Euro is mixed. For now, the selling in Dollar should have been exhausted, and consolidation would likely extend for a while. The question is how much the greenback could recover during this phase. Technically, Gold's development is so far in line with expectation. 1768.83 looks increasing likely a short term top, just ahead of 38.2% retracement of 2070.06 to 1614.60 at 1788.58. Break of 1753.09 minor support will bring deeper fall to 4 hour 55 EMA (now at 1734.49). The key line of defense will be at 38.2% retracement of 1616.51 to 1786.83 at 1721.76. As long as this fibonacci support holds, another rise is still in favor, and that will suggests that recovery in Dollar would be limited. In Asia, at the time of writing, Nikkei is down -0.31%. Hong Kong HSI is down -2.21%. China Shanghai SSE is down-0.68%. Singapore Strait Times is up 0.53%. Japan 10-year JGB yield is up 0.0004 at 0.246. Overnight, DOW dropped -0.12%. S&P 500 dropped -0.83%. NASDAQ dropped -1.54%. 10-year yield drooped -0.0107 to 3.692. |
