US Dollar Remains In Negative Mode, Despite Modest Rebound Efforts

Chris Lee

Further US Dollar losses into early May, are likely to extend, as we had anticipated and looked at in our previous weekly report on here. Despite a modest USD correction attempt, the US currency looks set to continue the weakness seen since mid-April against most of the major G10 currencies. Although the bigger picture bullish view for the US$ is intact, we see potential for further corrective losses into mid-May and potentially for the month.

GBPUSD Sets a Still More Bullish Tone

  • A significant setback ahead of the UK Election last week, but then a strong rebound from ahead of support at 1.4854.
  • The rally back through the 1.5500 recent recovery peak reinforces the intermediate term base and short-term bullish view for mid-May and likely this month.
  • We now see May
  • upside pressures for 1.5552/69, 1.5620, 1.5786, 1.5826 an maybe for 1.6000

Daily GBPUSD Chart


EURUSD Bullish Theme Intact

  • A dip and solid rebound from ahead of 1.1000, from 1.1064 to maintain the bullish base and recovery theme.
  • The previous basing through 1.1036/53 has been enhanced above 1.1249 and leaves the bias still higher for mid-May and likely for this month.
  • We see bias to 1.1380 next, the above here to target 1.1449 and 1.1534.

Daily EURUSD Chart


USDCAD Top Leaves Bias Lower for May

  • Erratic consolidation for early May, but the previous bear break in April for a multi-month top leaves the bias still lower for mid-May and for the month.
  • The recent probe below the trend line from 2014 and the 38.2% retrace of the 2014-15 rally, at 1.1990, aims still lower.
  • We see the May bias now for 1.1933, 1.1803 and retrace level at 1.1729.

Daily USDCAD Chart