In the foreign exchange market on Thursday, the US dollar rebounded after a rebound in support. The US dollar index rose to 96.68, the lowest fell to 96.04, closing at 96.60. Europe and the United States rose to 1.1391, the lowest fell to 1.1290, closing at 1.1299.
Under the dual role of ECB President Draghi and the US economic data, financial market volatility is more intense. Draghi said that the risk of economic growth prospects in the euro zone turned downward, and the euro fell. However, it subsequently stated that the European Central Bank still has sufficient tools available, and the euro has been boosted from the low level. Initially, as the euro fell and the US initial data was unusually bright, the US dollar index soared to 96.68, but then fell back as the euro rebounded. At the same time, the US Senate rejected the bill to provide funds for the government. There is still no clear way to end the long-term closure of the US government in history, which has led to a rebound in the US dollar index.
At a time when the eurozone economy suffered the biggest slowdown in five years, the European Central Bank kept its policy stance unchanged on Thursday, retaining the possibility of raising interest rates later this year. The euro stabilized slightly after Draghi downplayed the importance of deploying the Long-Term Refinancing Operating Fund (LTRO), but the US dollar fell again after US Commerce Secretary Ross stressed how far the US and China could reach an agreement. The pound fell 0.12% against the US dollar, after rising to an 11-week high. Before the UK parliament held an important debate next week, investors began to sort out positions.
It is unclear what steps Congress and Trump will take next. Pelosi said earlier on Thursday that she will “see him at any time Trump is willing” as the government continues to stop. She also denied reports that the Democratic Party prepared a counter-offer made to Trump, including the allocation of $ 5.7 billion for technical and other border security measures, rather than build a wall. Democrats insist that the United States can defend border security without walls. But Trump refuted this statement on Thursday. He wrote on Twitter: “It’s very simple, you can’t do without a wall.”
From a technical point of view, the US dollar index was supported above 96.00 on Thursday, and the gain was blocked below 96.70, closing at 96.60, which means that the dollar may rebound after a short-term correction. If the US dollar index is supported by 96.20 today, the target of the rebound will point to 96.85-97.05. Today, the short-term resistance of the US dollar index is 96.80-96.85, and the short-term important resistance is 97.05-97.10. Today, the short-term support of the US dollar index is at 96.40-96.45, and the short-term important support is at 96.20-96.25. Europe and the United States rebounded below 1.1395 on Thursday, the decline was supported above 1.1290, closing at 1.1299, meaning that Europe and the United States may maintain a pullback after a short-term rebound. If Europe and the United States rebound today under 1.1365, the market callback target will point to 1.1260-1.1230. Today, the short-term resistance in Europe and America is 1.1325-1.1330, and the short-term important resistance is 1.1360-1.1365. Today, short-term support in Europe and America is at 1.1260-1.1265, and short-term important support is at 1.1225-1.1230.
Today, the US dollar is mainly short-term bargain-hunting. It breaks the stop loss. If there is a profit of 30 points or more, it will set a good stop to win. Before the US market opens, all pending orders withdrawn will be withdrawn. This strategy is suitable for margin and can be used as a reference.
US dollar index: You can buy at the lower limit of 96.85-96.20, effectively break the 30-point stop loss, and target the upper limit of the range.
EUR/USD: You can sell at the upper limit of 1.1360—1.1260, effectively break the 40-point stop loss and target the lower limit of the range.
GBP/USD: You can buy at the lower limit of 1.3135—1.3055, effectively break the 40-point stop loss and target the upper limit of the range.
USD/CHF: You can sell at the upper limit of 0.9985—0.9920, effectively break the 25-point stop loss and target the lower limit of the range.
USD/JPY: You can buy at the lower limit of 110.00-109.30, effectively break the 30-point stop loss and target the upper limit of the range.
AUD/USD: You can buy at the lower limit of 0.7145—0.7055, effectively break the 30-point stop loss and target the upper limit of the range.
USD/CAD: You can sell at the upper limit of 1.3375—1.3305, effectively break the 30-point stop loss and target the lower limit of the range.
Gold: You can sell at the upper limit of the range of 1284.00—1276.00, effectively break the $5 stop loss, and the target is at the lower limit of the range.
Silver: You can sell at the upper limit of 15.40-15.20, effectively break the stop loss of $0.10, and target at the lower limit of the range.