Wang Liang: US Dollar Keeps Climbing And Vigilance Against Non US Rebound

The US economic data is still weak. The US Federal Reserve's national activity index in August dropped to 0.39 from the previous value of -0.221, far from the expected 0.33. In August, the total number of home sales dropped sharply from 5 million 150 thousand to 5 million 50 thousand, down from the expected growth to 5 million 200 thousand, and the sales month rate also dropped from 2.4% to -1.8% in the previous month. European and American stock markets fell, the Dow Jones index closed down 0.62%, the NASDAQ index closed down 1.14%, the S & P 500 index closed down by 0.80%, but the US stocks remained high and volatile.

Chairman Kocherlakota (Narayana Kocherlakota) warned that when inflation was below 2%,

(FED) it should be very cautious about raising interest rates, because doing so may jeopardize the credibility and inflation expectations of the Federal Reserve.

(TD Securities) chief foreign exchange strategist Shaun Osborne said: "I just think that the US dollar is soaring all the way, and it seems that it has not gained strong support from the fundamentals.

The US dollar index continued to rise for ten weeks, which is even more powerful than this.

If this will stop somewhere, then it may be a good time to postpone the rally. "

The finance ministers and central bank governors of the G20 group reiterated that the global economic growth will be greatly boosted through more infrastructure spending.

It also requires some Member States, especially European countries, to take more measures.

Delagi, the European central bank governor, said that if inflation remained too low for a long time, the ECB would be prepared to take additional unconventional measures within its jurisdiction and change the size or composition of unconventional measures.

However, analysts at the National Bank of Australia said in a report to their clients, "Draghi is more likely to be fooling the market rather than making any firm commitments.

Any unconventional measures must be within our scope of responsibility. The Bundesbank will no doubt think that buying bonds is not a duty. "

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Euro / dollar analysis

Price trend showed a downward trend, but in the vicinity of 1.2800 strong support, short-term rebound trend, above the target concern 1.2867, 1.2910, then can be high in the attempt to short, stop 1.2945 near; within the short term US dollar may be under pressure, the euro is expected to rebound in the low position, operation on the short line can do more near 1.2845, stop loss 1.2800, above target concern 1.2900.

Pound / dollar analysis

Pound against the dollar since the beginning of the low rebounded trend since the beginning of September, the chart shows MACD in the low appearance of "golden fork" signs, indicating that the current market is still continuing, operating to do more, above the target of 1.6420, 1.6480.

USD / yen analysis:

Four hours chart MACD appears on the 0 axis "dead fork", the K-line in the high partial air oscillation, indicating that the short-term price is in the trend of correction, below the support of 108.60 nearby, can catch up after falling down, the lower target attention 108.30, 108.

Analysis of Australian dollar / US dollar

Prices fell strongly, short-term concern about the support of 0.8856 nearby, weak downfall is expected to descend to 0.8660 near, but the hourly chart shows that the price rebounded slightly in the low position, the operation is based on high short selling, within days can be short in the vicinity of 0.8930, stop 0.8960.

US dollar / Canadian dollar analysis

Price shocks in the 1.0930--1.1100 range, within 1.1030 days of attention near the support, if the price is stable after the target concerned about 1.1100, the operation of low priority to do more, within days can be more near 1.1010, stop loss 1.0970.

USD / CHF analysis

The price of the sky chart is on the upward trend, but the short-term price is at a high level. The MACD is at a high level, but there is no kinetic energy. The short-term price is expected to show high volatility or fall correction. The underlying concern is 0.9300. Do not do much before the price breaks through 0.9430.

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