The US dollar has reached several key Fibonacci supports, which we suspect will hold the initial test and prompt some profit taking – notably the US dollar index has reached its 78.6% retracement at 73.48. EUR/USD is approaching its 78.6% retracement at 1.4732, USD/SEK has support at 6.0750, and AUD/USD is making heavy weather of trying to clear the 1.0794 level. Ditto cable, whose key 78.6% retracement lies approx 1.6600.
In addition we note tiny signs of life on USD/CAD. USD/BRL is expected to hold its 3 year low and USD/SGD is holding the base of its 9 year channel.
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