The US dollar just kept grinding higher today after doing the same all week, and it is interesting to note that it did so both in an environment in which US-China trade deal hopes were picking up into mid-week, and over the last couple of sessions, where at least a strong shadow of doubt was cast over those hopes. The USD upside has been most significant technically versus CAD and NZD this week, but AUDUSD bulls have to be disappointed as well. Below, we once again mostly focus in on USD pairs, but also bring an update for EURSEK, as the pair frustrated momentum traders once again today.
EURUSD – bulls in retreat – last gasp is 1.1000 before cycle lows
After teasing the well-etched top of the range to end last week and start this week, the EURUSD super major has been letting out air all weak and at the time of our writing is a mere few pips away from the last real arguable line of support ahead of the cycle lows below 1.0900 in the 1.1000 area – both a key round number and the approximate location of the 61.8% Fibo retracement. A failure of 1.100 reinvigorates the strength of the mind-numbing, tight, slowly descending channel that has dominated since 2018.