Session close for Thursday, March 22: Settled at 1.23865, down 24.5 ticks
Fundamentals: The Euro extended post-Fed gains to a high of 1.24675 overnight and topped out on the European open. Next came the catalysts for weakness, French and then German PMIs both missed. While German Business Climate was in-line with expectations, it cooled from last. Lastly, the trio of Eurozone PMIs all missed. The poor data, encouraged traders to ignore the upbeat European Cenrtal Bank Economic Bulletin and instead second guess the strength of yesterday’s close. Weak U.S. data did little to stabilize the Euro and weakness in equity markets likely contributed to the same here. While we remain unequivocally long-term bullish, the breakout might have to wait. The Euro Summit is tomorrow morning and other than that the calendar on that side of the pond is light. In the United States, Atlanta Fed President Bostic speaks at 7:10 a.m. Central, Durable Goods data is due at 7:30 a.m. Central, New Home Sales is at 9:00 and Minneapolis Fed President Kashkari speaks at 9:30.
Technicals: We can be as bullish as we want, but resistance is resistance and last night price action could not maintain out above first key resistance at...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Session close for Thursday, March 22: Settled at .9524
Fundamentals: The yen saw tremendous strength today as headline fear shredded through equity markets, it traded to the highest level since March 5. Dollar weakness from the Fed yesterday got the ball rolling for the yen and the combination of the two have it ever-close to a bullish breakout. Poor Manufacturing PMI and Industrial Activity overnight was ignored. Tonight, there is National CPI data due at 6:30 p.m. Central. The major catalyst for the yen ahead of the weekend will be equity markets and after a very weak close, which will help bid the currency closer to that breakout.
Technicals: Price action is running into a wide ranged major three-star resistance and price action must get out above the top end in order to confirm a breakout.
Australien dollar (June)
Session close for Thursday, March 22: Settled at .7712, down 45 ticks
Fundamentals: The Aussie extended post-Fed gains briefly in the overnight but as global equities faltered, so did it. Additionally, a weaker than expected employment report added weight. The White House imposed $50 billion of tariffs on Chinese imports and this is hitting home for the Aussie. With more to come down the pipeline, this will weigh on the Chinese economy which is Australia’s number one trade partner. There is no data out of Australia to finish out the week, but traders should keep an eye on equity markets.
Technicals: We were mostly neutral the Aussie coming into today despite how bearish we are on the dollar do to major three-star resistance.
Canadian dollar (June)
Session close for Thursday, March 22: Settled at .7754, up 2 ticks
Fundamentals: The Canadian hit its high later in the morning than the euro as it tracked the strength in crude oil. However, even crude oil slid on such a risk-off session. If equity markets continue lower, this will weigh on the Canadian. Still, we are upbeat on the Canadian because we do not see the U.S. dollar gaining much ground at this point. Data out of Canada will play a key role tomorrow; CPI and Retail Sales are due at 7:30 a.m. Central.
Technicals: Price action got out above major three-star resistance at... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.