The greenback is still undermined by the geopolitical concerns which weighed down on the USD yields which have been depressed recently by rising odds of having no more interest rate hiking this year amid the current lower than expected inflation pressure in US which makes the Fed in no rush to raise rates.
Gold is now trading close to $1335, after hitting its highest level since Sep. 26, 2016 at $1344.36 in the beginning of this week.
While the demand for risky assets could be supported by reaching a deal to extend the US debt limit affording funds to the government till the middle of next December.
The deal calmed down the worries about the government ability to fund the rebuilding in Texas on the aftermath of the hurricane Hervey which dampened the insurer companies shares and the mining activities in this region.
While it looks that Trump can find his way to intersect into the monetary policy too, after receiving yesterday The Fed's vice president Stanley Fisher's resignation letter.
Trump is not in favour of strong dollar and prefers a weaker dollar for supporting the exporting activity and lowering the imports.
The current United States Secretary of the Treasury under the Trump administration Steven Mnuchin said it clearly last week that a weaker currency is “somewhat better” for trade.
Trump is now working for imposing new sanctions against North Korea and its trading counterparts through the UN security council but that can be met by Russian objection.
The US administration is still raising the pressure on China to cap the North Korean plans believing that the clue to solve this problem is in China's hands.
God willing, the markets will be waiting today for the outcome of ECB members meeting, after his president Mario Draghi refrained from talking down the value of the currency in his Jackson Hole speech earlier last month.
Following the last meeting on Jul. 7, Draghi signaled that the ECB members are to talk about the QE tapering next autumn.
While the minutes of that meeting came out to show discrepancy about the suitable forward guidance that should be given to pave the markets for new action without misleading or lagging.
The minutes said that the members agreed that there should be a change but it must be "incremental" as postponing an adjustment for too long could give rise to a misalignment between the Governing Council’s communication and its assessment of the state of the economy.
EURUSD rose to be traded close to 1.1920, after finding support at 1.1823 following easing down from 1.2070 which has been reached last on Aug. 29.
After forming a series of higher lows since the beginning of this year when it formed a bottom at 1.0339 on the third day of this year to be the lowest level since December 2002.
EURUSD could enter a new pricing range of trading, after gathering higher momentum by breaking out its previous resisting level at 1.1616 which capped the pair on May. 3 2016.
After rising from its formed bottom on last Apr. 10 at 1.1569, EURUSD succeeded to keep its existence above its daily SMA50, its daily SMA100 and its daily SMA200.
EURUSD is still above its daily Parabolic SAR (step 0.02, maximum 0.2) for the 14th consecutive day reading today 1.1865.
EURUSD daily RSI-14 is referring now to existence inside the neutral region reading 60.334.
EURUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is still having its main line also in the neutral region at 56.445 leading to the upside its signal line which is at 43.628.
Important levels: Daily SMA50 @ 1.1697, Daily SMA100 @ 1.1401 and Daily SMA200 @ 1.1015
S&R:
S1: 1.1823
S2: 1.1663
S3: 1.1612
R1: 1.2070
R2: 1.2226
R3: 1.2569