Forex Sky Eye APP News: During the session on Wednesday (May 20), the US dollar index continued to fall, falling to a low of 99.21, the lowest level since May 1. As mentioned in the article, the market interprets Powell's previous speech implies that the Federal Reserve will launch more monetary stimulus measures, which will trigger a sell-off in the US dollar.
Just now, Dallas Fed Chairman Kaplan said that speculation is that the Federal Reserve will need to take more actions, and the Treasury Department needs to take more fiscal actions. The peak of the unemployment rate will reach around 20%. This remark seems to have exacerbated the decline of the US dollar.
news front, today, the market focuses on the minutes of the Federal Reserve meeting. FXStreet analyst Joseph Trevisani said the minutes expected to be held April 28-29 will not provide any new clues to the Fed's future policy, but people will carefully look at the minutes to find clues about missing economic and interest rate forecasts and negative interest rate discussions.
minutes may paint a frustrating prospect, as the number of first-time unemployment claims in the first three weeks of this month just outlined the depth of the historic unemployment disaster without any slightest.
Despite considerable public and speculation that the Fed may be forced to follow Fed futures into the negative interest rate range, Powell has said the Fed has not considered negative interest rates. Any positive mention of negative interest rates or praising European policy could cause damage to the dollar.
Technically, the US dollar rebounds weakly, and the US dollar index still faces the risk of a downward pointing to around 99 in the short term. Regarding the rebound of most G10 currencies such as the euro, pound, and Australian dollar, the latest article from Dailyfx pointed out that
euro: The Japanese chart shows that the euro/dollar surged and fell yesterday, but resumed upward during the day, and the Bollinger band tended to expand, indicating that the recent rise will continue. If it meets expectations, the rise in exchange rate will challenge the resistance at the 1.10 mark, which is the key resistance level in more than a month. If it can be broken through, it may usher in greater room for upward.
If the short-term pullback is made, pay attention to the support in the 1.0900-1.0910 area. The fall below may further point to the 20-day moving average of 1.0850.
pound: The daily chart shows that pound/USD continues to test the range bottom of the previously broken 1.2250. Effective breaking of this level will mean that the break of 1.2250 last week was a false break, and the exchange rate may rebound and rise in the range. If the effective position is above 1.2250 or further rebounds point to the 20-day moving average of 1.2350, a breakthrough will gain greater room for rebound.
. If it is blocked by 1.2250 and falls back, the initial support for the downward trend is 1.2170, and it will further support at 1.2100 after falling below.
yen: The Japanese chart shows that the US dollar/yen fell after hitting the top resistance of the range of 108.00, and the short-term outlook tends toward a downward trend. The initial support below is 107.50, and further support is 107.00 after falling below. If it rebounds, continue to pay attention to the resistance at the 108.00 line, and an effective breakthrough will usher in further upward space.
Australian dollar: The chart of the Japanese chart shows that the Australian dollar/USD recovered and fell at the key resistance of 0.6560 yesterday, and it is now trying to break through this level again during the day. Considering that the exchange rate has resumed its upward trend since April this week, there is a greater chance of breaking through the resistance to rise in the short term. If
effectively breaks through 0.6560, it may open up further upward space, and it may point to levels such as 0.6600 and 0.6650. If the short-term decline is expected, it is recommended to pay attention to support levels such as 0.6530 and 0.6500.
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