The Australian Dollar (AUD) accelerates its rally against a weak US Dollar (USD) on Monday, reaching 10-day highs at 0.7190 at the time of writing, after bouncing from lows near 0.7100 last week.

The EURUSD pair rose in its recent intraday trading, reaching the EMA50’s resistance, accompanied by retesting a previously broken trend line on the short-term basis, intensifying the strength and importance of this resistance as a key resistance to detect the upcoming trend, noticing the beginning of forming negative divergence on the relative strength indicators, after reaching overbought levels, exaggeratedly compared to the price move, with the emergence of the negative signals from them.

AUD/USD is being driven by risk sentiment near term, not fundamentals: The pair continues to behave like a high-beta risk asset, with its correlation to global equities surging to 0.95.

The USD/CAD pair is seen extending its retracement from the 1.3715 resistance, or over a one-week set on Friday, and drifting lower for the second consecutive day.

Short-term forecast for oil, gold, and euro-dollar today. Oil prices continue to rise.

UBS sees equity rebalancing flows supporting USD/JPY through month end

The US Dollar (USD) is showing the weakest performance among the G8 majors on Monday, and depreciates against the Canadian Dollar (CAD) for the second consecutive day. The pair trades at 1.3630 at the time of writing, to test fresh six-week lows after a knee-jerk reaction at 1.3713 on Friday.

Philip Wee of DBS Group Research observes that the US Dollar (USD), as measured by the US Dollar Index (DXY), has lost upside momentum after an earlier rebound. The index has stalled around 99 following a decline from 100.6 to just under 98 earlier in April.

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