EUR/USD licks its wounds around three-week low, pares intraday losses of late.US dollar cheers risk-aversion wave as hawkish Fed bets, China-linked news weigh on market sentiment.
EUR/USD picks up bids to consolidate daily losses around 1.0495, staying around the monthly low during a three-day downtrend amid early European morning on Monday. The major currency pair posted the biggest weekly losses since late April by the end of Friday after the US inflation data bolstered expectations of faster/heavier rate hikes by the Fed.
The oversold RSI conditions challenge the pair’s further declines around a 1.5-month-old horizontal support zone, near 1.0470-60.
Alternatively, the corrective pullback may initially aim for the 61.8% and 50% Fibonacci retracements of May 13-30 upside, respectively around 1.0515 and 1.0570.
USD/JPY storms through 135.00 amid firmer USD, yields
USD/JPY has broken through 135.00, hitting fresh over two-decade highs on hot US inflation-driven unrelenting dollar demand and firmer yields. The yen is sold off sharply by the BOJ’s dovish rhetoric. Japanese authorities undertake verbal intervention but to no avail.
AUD/USD bounces off 0.7000 as USD bulls take a breather
AUD/USD is bouncing off 0.7000, as the US dollar bulls take a breather after the hot US inflation-driven upsurge. The risk-off flows seem to have eased slightly, although China’s covid concerns continue to remain a drag on the aussie.
an adrenaline rush
Gold price has witnessed a vertical fall after failing to overstep the round-level resistance of $1,880.00. The precious metal advanced sharply on Friday above $1,870.00, attempted to balance above $1,870.00 in the early Asian session but failing to surpass $1,880.00 drifted the gold bulls lower.
MATIC price could crash another 22% if this signal pops
MATIC price has fallen off the cliff and crashed 17% this week, suggesting more could be on its way. A lower low below the May 9 swing low at $0.477 could see Polygon nosedive another 22%.