The US dollar continued to slip lower in quiet trade as the United States markets were closed for holiday. Today did not offer much data for the dollar, and price action declined breaking through 80 and reaching a year-to-date low, bouncing off 79.99 and before rebounding to 80.20.
The bearish shift in the dollar has been the result of consecutive months of rather horrendous labor data, compared to a few months prior, and other mixed economic data that is supporting the thesis that the United State has yet to find stable footing five years after the recession. Peter Kinsella, strategist with Commerzbank, said “there’s a general theme of dollar weakness.” He continued “There’s been a very patchy data outlook for the past six weeks to two months and expectations of a rate rise from the Fed have been curtailed.”
The 4H chart indicates that the rebound from the lows could be a pullback before US data and the FOMC minutes report this week. Price action was rejected off of resistance at 80.22, and there is potential for the dollar to retest lows unless sentiment changes. If the dollar can mantain upward momentum, next levels of resistance intraday is 80.39 and 80.49.