The US Dollar Index (DXY) was roughly unchanged in holiday-driven flow. The 130-day moving average continues to provide resistance, but the outlook continues to be bullish while hourly price-action remains above 80.30 on a closing basis.
The commodity currencies (Aussie and Loonie) outperformed as risk appetite continues to flourish. The USD/CAD has shied away from 100-day moving average resistance, while the AUD/USD remains poised to re-test 1.0031 (the 76.4% retracement).
The British Pound was the weakest currency following downwardly revised GDP data and a larger than expected current account balance. As a result, the GBP reached new cycle lows against the Swissy and Aussie. Each of these pairs, however, are expected to consolidate due to extreme oversold conditions before resuming further weakness.
.
STRATEGY UPDATE:
SELL GBP/CHF at 1.4680, targeting 1.4625 1st, risking 1.4735
SELL EUR/CHF at 1.2500, targeting 1.2440 1st, risking 1.2555
