The U.S. Dollar sold off throughout Monday as word came when reporters met up with President Francois Hollande ahead of the 2nd day of the G7 summit.
Originally reported by Bloomberg, President Hollande told reporters that Obama had showed signs of worry about the strong dollar. Both Obama and White House officials denied saying a strong dollar was a problem. Despite the accusations, the market saw its fair share of selling seeing the USD slide across all pairs.
The U.S. Dollar sold off showing no signs of holding the Non-Farm Payroll gains. Nevertheless, the current U.S. Dollar strength should resume its previous uptrend. We are currently getting a glimpse of the nearing end of the sell off.
USD buying pressure seems to be picking up on some pairs. AUDUSD is one of the pairs. Price is currently testing this critical zone serving as both support and resistance historically. It does not look like price is able to break below.
EURUSD is still stuck in the wedge since yesterday’s post and GBPUSD is in another range. Given by the strength in the Euro, this has pushed the EURGBP up in overnight trading.
Finally, you can start looking to scale into the long positions on USD pairs. Unlike the USDJPY pair, USDCAD delivers a more apparent signal as price reverses from our first buying zone.