Dollar index remains under pressure: Chart
The US Dollar was bearish against all of its major pairs on Monday. On the US economic data front, no major economic data was released.
On Tuesday, Empire Manufacturing for September is predicted to rise to 7.0 on month, from 3.7 in August. Finally, Industrial Production for August is predicted to extend 1.0% on month, compared to +3.0% in July.
The Euro was bearish against most of its major pairs with the exception of the CAD and USD. In Europe, the ecu Commission has reported July industrial production at +4.1% (vs +4.2% on month expected).
The Australian dollar was bearish against most of its major pairs with the exception of the CAD and USD.
Looking at active pairs, the USD/JPY dropped over 46 pips in Monday’s trading. From a technical perspective, the pair remains during a bearish trend channel capped by its 50-day moving average (in blue) and a declining line . As long as price action remains below 107.15 resistance we anticipate choppy price action with a bearish bias down towards August lows near 104.20.
The USD index also remains capped by its 50-day moving average (in blue) because the index remains during a downtrend. We may even see a continuation lower to check 91.75 support as long as 93.99 isn’t broken to the upside.