USD Stays Strong as Bets for Aggressive Fed-cuts Fade

Dollar Stands Tall after NFPs, Ahead of Powell’s Testimony

The dollar continued trading north on Monday and during the Asian morning Tuesday, outperforming all of the other G10 currencies. It gained the most versus AUD, CHF and JPY, while the currencies it outperformed the least were NZD, GBP and EUR.

AUD/USD — Technical Outlook

AUD/USD continues to drift lower, trading below a short-term tentative downside resistance line taken from the peak of July 4 th. We might also say that the pair has formed something like a double top pattern and currently sits at its neckline, at 0.6955. Our oscillators have also started shifting somewhat to the downside, but before we get comfortable with further declines, we need to see a clear break below the 0.6955 zone. Thus, for now, we remain cautiously-bearish over the short-term outlook.

Nasdaq 100 — Technical Outlook

After the Nasdaq 100 cash index hit its all-time high, near the 7882 level on July 5 th, the price reversed back down and broke its short-term upside support line taken from the low of June 13 th. The index is currently balancing around its support area at 7732, which is also the low of July 1 st. For now, we remain cautiously-bearish over the short-term outlook and we will wait for a clear break below the above-mentioned support area, before getting comfortable with further declines.

As for Today’s Events

The calendar appears relatively light today. From the US, the only worth mentioning indicators are the US JOLTs Job openings for May, where expectations are for a slight increase, and the NFIB Small Business Optimism index for June, for which no forecast is available.

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