Daily Report:

Dollar Soft on Rally in Stocks and Commodities, All Eyes on 2Q GDP

Dollar and yen are generally soft today so far on the back of another day of rally in Asian stocks and further rebound in commodities. Following 0.92% rise in DOW, Nikkei gapped higher and surged 1.9% to close strongly at 10356. Crude oil is ba

ck above 67 level, after two volatile days of price actions on Wednesday and Thursday which saw the black gold dipped to as low as 62.70. Gold is also trading above 940 level again. Note that dollar has contrasting outlook against two groups of currencies. Against Euro, Yen and Swissy, the greenback is noticeably strong this week and some upside is in favor in near term. However, against Aussie, Loonie and Sterling, dollar remains weak and a new low is still expected.

Technically, Dollar index's rebound from 78.32, t hough strong, was limited by mentioned 79.66 resistance and retreated sharply. With 4 hours MACD crossed below signal line, intraday outlook is turned neutral for the moment. Note again that with 79.66 resistance intact, there is no clear indication of reversal yet. Below 78.76 will suggest that correction from 78.32 has completed and will bring fall resumption towards 77.69 key support. However, a break above 79.66 will firstly indicate that fall from 80.89 has completed. Also, this will build up the case of double bottom reversal in the index (78.33, 78.32) and will bring stronger rise to 81.47 resistance for confirmation