On Friday, December 1st, Federal Reserve Chairman Jerome Powell refuted market expectations for future interest rate cuts, stating that it was too early to conclude with confidence that monetary policy was sufficiently restrictive. Despite Powell's cautious remarks, as the stock market rose on the day, yields continued to decline as traders interpreted it as a signal that the central bank had completed raising interest rates. The yield of 10-year US treasury bond bonds fell more than 13 basis points to 4.213%, and the US dollar index fell.
US dollar index
The US dollar index rose at one point during the day and hit the 200 day moving average. The bullish correction of the US dollar index is currently underway and testing the 200 day moving average. If the index rebounds, traders can establish short positions in the US dollar. However, if the closing price is higher than the 200 day moving average, the increase may continue until 105.00.
Euro USD
The euro/US dollar fell below 1.0900 and is currently attempting to weaken further to the 200 day moving average and 1.0800. Traders can wait for bullish reactions at these two points to gain the opportunity to establish long positions. In the long run, the trend remains bullish, so traders should avoid short positions.
Key levels worth paying attention to today:
Support positions: 1.0800, 1.0650, 1.0500
Resistance levels: 1.0900, 1.1000, 1.1120, 1.1185, 1.1300, 1.1360
GBP/USD
The GBP/USD has been pushed down to 1.2625 and is currently being tested at this level. If the currency pair continues to weaken, the 200 day moving average will become the target for a decline. Currently, traders will take advantage of the ongoing bearish adjustment as an opportunity to establish long positions at support points.
Key levels worth paying attention to today:
Support positions: 1.2625, 1.2200, 1.2100, 1.2000
Resistance level: 1.2800
USD/JPY
The US dollar/Japanese yen rose yesterday and there is a chance to continue rising to 150.00. However, the trend has reversed and the currency has experienced weakness today. The downward targets for this currency pair are at 147.00 and 145.00.
Key levels worth paying attention to today:
Support positions: 147.00, 145.00, 141.00
Resistance level: 150.00
AUD/USD
The AUD/USD fell yesterday and tested its 200 day moving average, showing a rebound reaction. Today, the currency pair is rising and has eliminated yesterday's decline. If the bullish situation does not change, then the upward target for the currency is 0.6700 and 0.6750.
Key levels worth paying attention to today:
Support positions: 0.6500, 0.6350, 0.6170, 0.6000
Resistance levels: 0.6700, 0.6750, 0.6820, 0.7000
