The dollar remains in a commanding spot and looks poised to stretch gains in the new week. USD/JPY continues to hold above 140.00 while EUR/USD is starting to contest levels below 1.0700 with room to roam towards 1.0500. Meanwhile, AUD/USD is threatening the 0.6500 mark and NZD/USD is eyeing a test of 0.6000 at the moment.
Elsewhere, gold is also potentially breaking down as it contests its 100-day moving average at $1,936 with the 50.0 Fib retracement of the swing higher from March to May seen at $1,935 as well. A break below that should accelerate the downside momentum towards $1,900 next.
This is all coming as the dollar runs hot amid a turnaround in market sentiment on the Fed outlook. What was supposed to be three rate cuts by year-end has completely turned around now. Don't say that you weren't warned though.
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