Dollar stays generally soft in Asian session today as markets await Fed Chair Jerome Powell’s testimony. The topics of inflation and surging treasury yields would be the focuses. For the former, Powell would likely talk down the significance of temporary rise in inflation, and focus on medium term outlook and expectations. Though, yields would be a more tricky one. Fed would, on the one hand, be happy seeing treasury markets moving “back to normal”. Yet, Powell would hope to refrain from hinting on even considering stimulus exit. The balance is not easy or him to strike.

Technically, EUR/USD’s break of 1.2168 minor resistance suggests resumption of rebound from 1.1951 for 1.2348 high. USD/JPY’s breach of near term channel support is an early sign of near term bearish reversal. Both are hinting on some downside risks for Dollar. Gold’s break of 1810.38 minor resistance also argues that it has bottomed at 1760.46, after breaching 1764.31. Strong rebound in Gold towards 1855.17 resistance could reaffirm Dollar weakness elsewhere.
In Asia, Hong Kong HSI is up 1.48%. China Shanghai SSE is up 0.34%. Singapore Strait Times is up 0.73%. Japan is on holiday. Overnight, DOW rose 0.09%. S&P 500 dropped -0.77%. NADSSAQ dropped -2.46%. 10-year yield rose 0.025 to 1.370.

Source: www.actionforex.com