• Broad-based dollar strength (KTM: USDX) across the G10 FX
• China Industrial production growth slowed to 5.3% in January and February
The dollar index (KTM: USDX) fail to settle above last week’s high, may be forming a double top pattern. We believe February month-end position adjustment mostly leads to recent retracement. On top of these, we are becoming increasingly concerned about the double top pattern on RSI.
The tradable dollar index (KTM: DXY) manages to hold the 100MA on Wednesday and rebounded above 20MA. As mentioned above the dollar dominion widespread against the G10 counterparts, especially against the Pound down 0.70%. Readers can remind our caution tweet on the GBPUSD.
#GBPUSD: Stay cautious before taking fresh long positions
On Wednesday the cable failed to handle 50.0% fib reaction. The daily RSI traced out a near-term top . #fxch #fxtrader #FX初心者
Support finds between 1.3215-1.3170<1.3100 pic.twitter.com/6e7wB66msI
— KeytoMarkets (@KeytoMarkets) March 14, 2019
The latest set of headlines over Brexit raised the volatility since this Monday.
The British Parliament vetoed Amendment I, which seeks to pave the way for an indicative vote on the Brexit option. The British Parliament vetoed Amendment E, which seeks to delay the Brexit deadline, Wallstreet cn reported.
In majors GBP down 0.90% followed by Kiwi dollar 0.50%, AUD and JPY by 0.40% and CAD and DKK by 0.3% each.
Turning to emerging market currencies, South African Rand down nearly 0.90%.
Elsewhere, China Industrial production growth slowed to 5.3% in January and February. However, the bright spot in the recent releases was fixed investment, which rose 6.1% in the first two months of the year.
A strong dollar moves usually crush the commodities; overnight Platinum was the biggest loser with 2.30% followed by Copper with 1.5% and Gold rejected at 20MA and fell a percent to 1295$.
We will see the Bank of Japan Monetary Policy Statement followed by a press conference. In Europe, we focus on EZ CPI numbers.
Key support and resistance levels :
The yellow metal closes at 1296$ on March 14. The crucial, pivotal finds at 1290$ which will act as a key level in today’s Asia session followed by 1286$ and 1280$. Note that the 61.8% fib reaction finds at 1292$ (1280.50$-1311.20$ rally). Flipside resistance seems to be at 1301$, 1305$ and 1311$.
Turning to daily indicators, the RSI lacks conviction whereas the oscillator underneath remaining bullish.
Copper pivotal finds at 2.8670 below here focus shifts to 2.8550-2.8500. Flipside resistance seems at 2.9070, 2.9300 and 2.9500. The daily RSI has been edging down, and the oscillator is remaining bearish. Note that the daily indicators are approaching oversold levels on the H4- Chart.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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