USDCHF holds steady
The US dollar consolidates gains as the market looks ahead to the August CPI data. The pair continues its way up after clearing the supply area around 0.8860. A series of higher lows indicate a still strong buying pressure which has carried the greenback to the next threshold at 0.8950. A bullish breakout would expose the psychological level of 0.9000, opening the door to a broader recovery in the medium term. 0.8880 is the first support and 0.8830 over the 20-day SMA is a key level to maintain the current momentum.
NZDUSD tests supply zone
The New Zealand dollar clawed back some losses as traders took profit ahead of US inflation data. The pair seems to have secured a foothold at 0.5860 and a subsequent rise above 0.5900 prompted sellers to take some chips off the table, alleviating the bearish pressure. 0.5960 from the latest leg of sell-off coincides with the 30-day SMA, making it an important hurdle to lift before the Kiwi could see a meaningful rebound above 0.6000. On the downside, a fall below aforementioned support would send the pair towards 0.5750.
EURJPY finds support
The yen found support after BoJ Governor Ueda hinted at a possible end to loose monetary policy. On the daily chart, the euro is trying to hold onto its gains after clearing June’s top of 158.00. In the short-term, a drop below the recent triple bottom of 157.00 has put the bulls on the defensive, but it may be too soon to call it a bearish reversal as trend followers could see it as an opportunity to stake in near 156.60 in the hope of another rally. 158.50 is a key resistance and its breach could help the bulls regain control of the direction.
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