- This will be a big week for the US Dollar[1], and the Greenback is getting started with a full head of steam after the bullish breakouts of the past couple of weeks. Those breakouts were largely induced from deductive pushes, as falling inflation created more passive backdrops in Europe, the UK and Japan; and more dovish stances at the ECB, BoE and BoJ have elicited weakness in the native currency, thereby pushing strength in the US Dollar. With a full slate of USD-related items on the calendar for this week, the big question is whether the US Dollar con continue this topside run.
- The US Dollar is showing a bear flag formation, and given support structure in EUR/USD[2] and GBP/USD[3], reversal plays could prove interesting. For a continuation of USD-strength, commodity currencies could remain as attractive candidates, and we look at setups below in AUD/USD[4], NZD/USD[5] and USD/CAD[6].
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10].
US Dollar Continues to Run Ahead FOMC, NFP
This will not be a quiet week for the US Dollar, as the April bullish breakout will be in the spotlight[11]
