|Day's range||0.941 - 0.941|
|52-week range||0.9182 - 1.0026|
There are two levels in focus on Friday. The first is last week’s close at 97.580. The second important level to watch is 97.700.
It seems that Tuesday is a correction day. Indices are giving up Monday gains, safe havens are climbing higher and Oil is declining.
The Euro rose to two-week highs against the Dollar. Surpassing 1.0930, the common currency is close to restoring its losses from the beginning of the month to the Dollar.
The U.S. dollar has given back some of its overnight gains in early European trade Friday, but remains in favor as risk aversion still dominates, amid rising Sino-U.S. tensions. At 2:45 AM ET (0645 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 100.365, down 0.1%, having earlier Friday reached a three-week high. U.S. President Donald Trump ratcheted up these tensions in an interview with Fox Business Network on Thursday, stating he was disappointed with China's failure to contain the coronavirus, that this had cast a pall over the trade deal between the two countries.
Sell in May and go away, if you’re not familiar with this phrase, it’s a saying frequently used by stock traders and refers to the popular belief that stock markets tend to go down in May.
The world markets started trading session on Tuesday with a dive into the red zone. However, they managed to return to growth in the wake of news about the spread of coronavirus.
The dollar traded marginally higher Tuesday, helped by gains against the more defensive currencies, the Japanese yen and the Swiss franc, on the last trading day of the month. At 3:05 AM ET (0705 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 99.597, up 0.3%. “The talk is Japanese names are short of dollars (as the fiscal year comes to an end), which is likely to keep the dollar bid well into London time,” Yukio Ishizuki, FX strategist at Daiwa Securities, told CNBC.
The U.S. dollar has continued to push higher Thursday, as investors look for a safe haven amid periods of wild financial market volatility and worries over tightening liquidity. The U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 101.930 up 0.4%, and just off its highest level since the end of 2016. Elsewhere, the Australian dollar skidded to a 17-year low, the New Zealand dollar fell to an 11-year low, while the Norwegian kroner fell over 5% overnight as oil prices crashed.
Investors are nervously looking at the bankers’ printers awaiting the fresh stream of money. That is the world that we live in after the 2008 and we just have to accept it.
Based on the early price action and the current price at 99.235, the direction of the March U.S. Dollar Index the rest of the session on Tuesday is likely to be determined by trader reaction to the pivot at 99.200.
USD/CHF pulls back after the hitting 50% retracement level on the upside. A deeper pullback will setup new possibilities for entry as targets remain higher.