The dollar will bargain in “red” zone

  • And
  • +A

Monday at auction in Europe EUR/USD pair continued the upward movement that started in the Asian session. Morning bullish momentum majors asked the Australian statistics. Retail sales for April exceeded market expectations twice.
On the news the Australian dollar ahead of the RBA meeting rose against the dollar on 1,30%, to 0,7664, EUR – 0.73%, to 1,1738. Given that defused the situation in Italy and Spain, after the breakdown of the resistance area 1,1725-1,1730 loomed on the horizon level 1,1795.
Italian sovereign bond market to recover. The yield on 10-year us bonds decreases, than increases the pressure on the dollar and helps “news”.
In the United States today will release a report on factory orders that could give new impetus to trading. The market expects that in April the volume of orders decreased by 0.5% compared with 1.8% a month earlier. The decline considered by the market, so it is enough to get a better forecast in the range of -0,1 or -0,2%, and the decline of the dollar will stop.
I believe that the Euro/dollar to increase in need to create a base for beginning to 1,1795-1,18. On the hourly chart indicators are a little overbought, so a pullback to 1,1700 will be appropriate and useful for all.
______________
Vladislav Antonov,
Analyst
Alpari