Industrial Investment (UK) Foreign Exchange Daily Review: Trump Preheats up the US dollar for a speech to Congress, with the US dollar initially down and then up, waiting for new directions

euro/dollar
The euro opened this week at1.0550After stabilizing on the front line, the market fluctuates and rises, with an upward trend1.0630But at the end of the day, it recouped most of the day's gains and included a candlestick with a long upper shadow. Due to market concerns that Trump may not provide tax reform details in Tuesday's State of the Union address, the US dollar was under pressure and fell. However, overnight, Trump gave a reassurance to the market that was hoping for fiscal stimulus, stating that he would invest heavily in infrastructure. Meanwhile, White House officials have stated that Trump's budget proposal will increase defense spending540Billion US dollars, reducing non defense expenses540USD100mn The fourth quarter of the United States will be announced tonightGDPHowever, as Trump's speech is imminent, the market may overlook the performance of the data. This Tuesday Eastern Time21:00(Wednesday Beijing time)10:00）Trump will speak in Congress to monitor whether his fiscal stimulus plan will satisfy the market.
The daily chart shows strong resistance in the upper part, but yesterday's closing positive included last Friday's bearish entity, which may fluctuate in the short term,4Hour chart breakthrough2month2The downward trend line since the daily high point, although the rebound momentum is limited, the high and low points have moved up, indicating that there is still upward action potential. The hourly chart rises and falls, but stabilizes1.0490The short-term upward trend line since the low point may still fluctuate and rise in the short term. Suggestions for the day1.0560Going long with light positions above,1.0640Seeking backhand short selling opportunities on the front line.
Support position:1.0520 1.0470 1.0440
Resistance level:1.0590 1.0635 1.0660
pound/dollar
The pound has fallen significantly since the opening, but has recently consolidated at the bottom of the range1.0400There is clear support on the front line, with a brief downward penetration during trading but quickly recovering lost ground. The New York market stretched upwards but failed to hold on to its gains, with the daily chart including a small bullish line. The spokesperson for the UK Prime Minister stated that May opposes Scotland holding a second referendum, and yesterday's rebound in the pound may be a correction to earlier overreactions. The current trend of the pound is still maintaining a range, and the overnight rebound has delayed the breakthrough time. However, the rebound strength is limited, and there is no further news on the UK's exit from Europe process in the near future, which may need to be driven by the US dollar factor.
Daily chart stabilization1.2380-1.2580The bottom of the range rebounds, but the strength is limited, and the short-term range is treated weakly.4The hourly chart trend fluctuates,1.2400The frontline provides initial support but lacks follow-up on the rebound, resulting in a slightly weaker short-term trend. After a significant decline in the hourly chart, it quickly stabilized and rebounded, but then gave up most of the gains, indicating a bearish short-term trend. Suggested light warehouse for the day1.2500Short selling on the front line, paying attention to1.2380The performance of nearby support determines further direction.
Support position:1.2380 1.2345 1.2300
Resistance level:1.2480 1.2530 1.2565
dollar/Japanese yen
The exchange rate is112First line stabilization, New York market was boosted by news from Trump about the launch of large-scale infrastructure measures, with a strong upward trend, reaching the highest level of exploration112.83Reduce some of the gains in the late trading session. Yesterday, US durable goods order data was released, but market response was limited, with the focus on US President Trump's first speech in Congress. The market originally had low expectations for Trump's detailed tax reform plan on Tuesday, but before his speech, Trump also proposed measures to increase infrastructure that would satisfy the market. However, the market is clearly still waiting for Trump to fulfill his promise.
Daily chart falls below mid-term support100The daily moving average rebounded overnight but did not change the technical bearish trend, but the random indicators have a tendency to bottom out in the short term.4Hour chart stabilization111.90The nearby level has risen strongly but lacks follow-up, butMA5/10The formation of a golden cross may provide support, with a slight correction after a strong rise in the hourly chart, and limited short-term pullback space. Suggest waiting within the day113The performance of first-line resistance determines further direction.
Support position:112.50 111.95 111.60
Resistance level:113.05 113.45 113.90
dollar/Cad
The Canadian dollar was the weakest performing non US currency yesterday, with repeated probing1.3080Without breaking through the front line, the New York afternoon session saw a strong rally and hit the top of the recent consolidation range1.3190First line. The reason why the Canadian dollar has shown weakness is primarily due to the weakening of the US dollarcrude oilThe downward drag prevented it from rising, and after US President Trump announced the launch of large-scale infrastructure, the strong rise of the US dollar further boosted the exchange rate. Follow Trump's congressional debut.
Daily chart significant lift test200The daily moving average resistance, only breaking through this level can open up further upward space.4The hourly chart has shown a strong upward trend, but there are signs of a slowdown in the upward trend near the previous high point, indicating the possibility of a short-term adjustment. The hourly chart shows a sharp upward trend, and the strength of the correction is temporarily limited. Suggest following within the day1.3200A line of resistance, effective upward breaking is expected to point towards1.3260。
Support position:1.3170 1.3130 1.3090
Resistance level:1.3200 1.3260 1.3275