April 19, 2022 13:30 GMT
- Net long specs on the US Dollar ticked lower in the week ended April 12 despite the USD spike, decreasing by 21.4K to a total of 81.2K contracts.
- Speculative positions against the Yen continue to grow, reaching their highest level since November 2018 (+111.2K) as investors have become increasingly bearish on JPY amid monetary policy divergence.
- The global risk off environment triggered by the renewed geopolitical tensions has been supporting ‘safe-haven’ assets such as the US Dollar and Gold.
- The DXY index broke above the psychological 100 level last week and is currently testing its 101 resistance.
- Key resistance to watch on the topside stands at 102.98, which was the high reached in March 2020 following the Covid19 shock.
- On the downside, support to watch stands at 99.7290, which corresponds to the 76.4% Fibo retracement of the 89.21 - 102.98 range.