USD sells off as UK100 hits Target 1

UK100, Daily              

The dollar came under pressure amid concerns about Trump’s protectionist course. The buck was off its lows heading into the New York interbank open, but still showing a 0.9% loss versus the yen, a 0.5% decline against sterling, a 0.3% loss to the euro and Canadian dollar. USDJPY’s low was 113.17, which is a three-session low, while Cable clocked one-month peak, at 1.2471, and EURUSD a seven-week peak, at 1.0755. The yen’s outperformance was a reflection of reinvigorated safe haven demand, with European stock markets trading mostly lower.

The opening weakness today for the FTSE100 (UK100) helped the short position from last Wednesday (January 18) at 7240 to reach target 1 (7155) for a net gain of 85 points. Target 2 is at the psychological 7000 and the 50 DMA. Assuming the breaching of the 20 DMA (around the 23.6 Fibonacci level at 7200) is retained on today’s close then this could attract more short positions overnight. The RSI and MACD remain neutral.

/ has had a 100% start to 2017 with five trades achieving both Targets 1 and 2 and this sixth trade hitting target 1 for a total net gain of 1218 pips.

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