Mid-US Session Update: Dollar resumes rally against EUR, GBP, AUD; European Indices closed in red

Dollar surges broadly in the first half of US session. EUR/USD, GBP/USD and AUD/USD all resumes recent fall after brief consolidations. Dollar is trading in red against Canadian and New Zealand Dollar. But we can disregard Kiwi as it’s just merely digesting recent loss.

The key is whether USD/CAD has completed the rebound from 1.2961. With 1.3035 minor support intact, we’re staying bullish in the pair and expect another rise through 1.3170 to 1.3289 resistance.

Besides, USD/JPY remains an interesting pair to watch. We’re treading the fall from 113.17 as a corrective. That is, we’re bullish in the pair. A break of 111.17 resistance will affirm our view and bring a test on 112.14 resistance. That would also indicate that Dollar is finally taking the control back from Yen.

In other markets:

• DAX closed flat at 12358.87, up 0.13 pts, 0.00%
• CAC closed at 5403.41, down -8.891 pts, -0.16%
• FTSE closed at 7611.634, down -30.81 pts, -0.40%.

US indices perform well. At the time of writing

• DOW is up 0.46%
• S&P 500 is up 0.68%
• NASDAQ is up 0.72%
• 10 year yield up 0.0073 at 2.889