FxWirePro: Forex Daily Update

The US dollar index is consolidating in a narrow range between 105.04 and 105.64 for the past three days. It hit a high of 105.64 yesterday and is currently trading around 105.511.

Boston Fed President said on Wednesday that rates should remain longer than expected to make inflation down to 2%.

According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 91.3% from 90.7% a week ago.

Major resistance- 105.60/106.50

Major support- 104.50/103.80

EURUSD-

EURUSD lost its shine on board-based US dollar buying. The policy divergence between the ECB and Fed putting pressure on the Euro at higher levels.

The recent ECB official statement shows that the probability of three rate cuts this year has increased compared to the previous month.

Major resistance-1.0820,1.0865

Major support- 1.0720,1.0660

Yen-

The pair traded higher for the fourth consecutive day. The upside is limited due to Fx intervention by the Japanese government. Any break below 153.40 confirms major bearishness.

Major Resistance- 156,157

Major support- 153.40,151.85

Canadian Dollar

The Canadian dollar gained momentum despite weak crude oil prices. Any break above 1.3760 confirms further bullishness.

Resistance- 1.3760,1.3800

Major support- 1.3700,1.36000