The dollar traded higher against all the majors on Tuesday. The rally was exacerbated by stacking evidence regarding the weakening the Eurozone economy; the Ifo institute's index of German business climate fell to 94.8 from 97.5 in July, while the sub-index of business expectations fell to 87, the lowest since February 1993. With the dollar basically alternating up and down days ahead of the long US weekend, it should edge lower first before the next upmove.

Euro/dollar

The euro/dollar fell to a near 6 ½-month low on Tuesday before trimming losses. Following an early recovery, its decline should resume. My model went short after the release of the horrible Ifo report, so I like the pair down overall.

Immediate support comes at 1.4635.  The next level is 1.4572. Below 1.4540, support comes at 1.4485 and 1.4455.

Initial resistance is now seen at 1.4710. The next good level is at 1.4800. A pivotal level is in place at 1.4910.

Oscillators are declining.

NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish
LONG-TERM: Mixed

Dollar/yen

Dollar/yen continued to alternate up and down days, but the upmove on Tuesday was not significant at the pair got stuck in an inside range.

Immediate resistance is at 110.00. Strong resistance follows at 110.35 from a 50-point pivot, which targets 109.85 and 110.85. Distant resistance is 111.60 from another 50-point pivot, which targets 112.10 and 111.10.
 
Strong support remains at 109.15 from a 50-point pivot, which targets 109.65 and 108.65.

Oscillators are mixed.

NEAR-TERM: Slightly bullish 
MEDIUM-TERM: Bullish  
LONG-TERM: Mixed

Sterling/dollar

Sterling/dollar fell to an over two-year low on Tuesday and the selling pressure should persist.

This is followed by 1.8245.  Below 1.8207, cable has support at 1.8127. 
 
Immediate resistance now comes at 1.8443.  This is followed by 1.8565. The next strong resistance remains 1.8620.

Oscillators are falling.

NEAR-TERM: Mixed with downside risk
MEDIUM-TERM: Bearish 
LONG-TERM: Mixed

Dollar/Swiss franc

Dollar/Swiss rallied to a six-month high on Tuesday before giving up most of its gains.  My model is now long.  The medium-term outlook remains positive, but trading should be choppy for a couple of days.

Initial resistances come at 1.1054 and 1.1086. Strong resistance follows at 1.1185.

The pair sees immediate support at 1.0955.  This is followed by the area between 1.0925 and 1.0915. A pivot low remains at 1.0844, but this should not be challenged.

Oscillators are rising.

NEAR-TERM: Slightly bullish
MEDIUM-TERM: Bullish  
LONG-TERM: Mixed