The dollar strengthened against most major currencies on Tuesday after a widely-watched gauge of U.S. consumer confidence beat expectations. The Conference Board reported that its consumer confidence index rose to 90.9 in July from an upwardly revised 86.4 in June. It was the highest reading since October 2007, defying consensus forecasts for a decline to 85.3.The data sent investors betting that the Federal Reserve on Wednesday will make fresh cuts to its monthly bond-buying program and deliver an upbeat take on the U.S. economy. Also hopes for a robust July jobs report due out on Friday also firmed the greenback.
Intra-day bias in the pair remains on the upside as 21 and 55 EMA’s are crossed northward showing more buying is expected. Also we have a fresh MACD buying signal, SSRC (made from Stochastic) also shows more bullish momentum is expected. Am expecting price to rise to weekly R2 which is 102.398.
Key economic reports scheduled to be released later in the day is the U.S ADP Non Farm pay Roll, Advance GDP q/q and FOMC Rate Statement.