 Risk aversion is the prevailing theme in the global markets today, with major European indexes trading in the red and US futures pointing to a lower open. Australian Dollar reversed its earlier post-CPI gains and is currently the worst performer of the day, followed by New Zealand Dollar and Canadian Dollar. In contrast, Swiss Franc is the strongest, followed by Euro and the US Dollar, while Japanese Yen and British Pound are positioned in the middle. Technically, USD/CAD failed to sustain below 55 D EMA again, and recovered ahead of 1.3589 cluster support (38.2% retracement of 1.3176 to 1.3845). Near term bullishness is maintained thus far. Break of 1.3742 resistance will argue that corrective pullback from 1.3845 has completed already, and larger rise from 1.3176 is ready to resume. Let's see if Friday's US PCE inflation data could trigger the move... |
