EUR/USD bulls are taking charge in a slow start in Tokyo. The US dollar is on the backfoot and the technical structure points higher for the euro.
EUR/USD is attempting to move higher in a risk-on start in Tokyo as the US dollar struggles to pick up demand on Tuesday. The pair is consolidating in a 4-hour 100 pip bow between 1.0400 and 1.0500 which has been established in the first week of the new month while the price carves out a daily triple bottom. The following illustrates the market structure across the time frames and arrives at a short-term bias to the upside with eyes on 1.0500.
EUR/USD H1 chart
From an hourly perspective, the price is testing the neckline of the bullish W-formation. If the bulls commit here, then there will be prospects of a move higher within the sideways channel with a focus on 1.0500.
EUR/USD daily chart
The daily chart shows the price has the potential to move higher from the foundations of a triple bottom. The M-formation is a compelling feature of this time frame also which is a reversion pattern, at least until the neckline.
AUD/USD firming up towards 0.6900 ahead of RBA rate hike decision
AUD/USD is trading firmer, as bulls eye 0.6900 amid a risk-on market profile and expectations of a 50 bps RBA rate hike. Fresh Sino-US headlines and stronger Chinese Caixin Services PMI are bolstering risk sentiment, underpinning the aussie.
USD/JPY tracks firmer yields to regain 136.00 amid upbeat mood
USD/JPY extends the recent recovery to recapture 136.00 in Asia this Tuesday. The pair’s upside could be linked to the market’s positive sentiment and firmer Treasury yields. Sino-American headlines, BOJ chatters keep the buyers hopeful.
Gold oscillates around $1,810 on volatile DXY, focus is on Fed minutes
Gold price is testing the upside break of the consolidation formed in a narrow range of $1,806.60-1,809.89 in the early Tokyo session. On a broader note, the precious metal has turned sideways after a firmer rebound from Friday’s low at $1,784.55.
S&P 500 futures jump nearly 1% as US set to rollback China tariffs to fight inflation
Risk sentiment remains underpinned by hopes of an imminent withdrawal of US tariffs on Chinese goods, as political pressure in America heightens amid raging inflation. Commodities and high-beta currencies cheered the US-Sino trade optimism. S&P 500 futures and the Asian stocks trade firmer.