The dollar certainly kept things interesting on the week, after nudging lower following the weekly jobless claims data. It seemed like markets were content to keep the sideways action going but the slight action yesterday does set up some interesting technical positions for dollar pairs.
In particular, AUD/USD is inching back above 0.6700 and holding a push above its 200-day moving average – seen at 0.6689 currently. The 100-day moving average remains the key technical resistance spot to watch though and that comes in at 0.6739.
Meanwhile, EUR/USD is also looking to climb back towards 1.0800 with its 100-day moving average sitting close by at 1.0807. Stay below and sellers have incentive to stay in the game before next week’s main events. But break above, and buyers will be in a good spot technically to capitalise on any dollar weakness that may come.
Elsewhere, gold saw a strong bounce off its 100-day moving average again to $1,964 now. However, a lot of what comes next will rely on the US CPI and Fed decision next week. And in the equities space, the bulls are brushing aside the drop on Wednesday with the Nasdaq once again passing its highs from August last year. The S&P 500 is also looking poised to test its own August highs at 4,325 next.
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