Talking Points:
- The Dow looks set to gap-lower this morning as US Dollar strength continues. The weekend-gap that we looked at yesterday in the Dow has now been filled, and we’re now testing an area of support that held-up the lows throughout last week.
- Elsewhere – support has not been so friendly. The Euro[1] is digging deeper into the zone that helped to hold the lows for the latter-portion of last year, and GBP/USD[2] has been in hard-sell mode as another disappointing release of UK inflation numbers make the prospect of tighter policy from the BoE even more distant.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[3]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[4]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[5].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[6].
Dollar Rallies Back to Resistance While US Equities Reverse Early-Week Breakout
The US Dollar is back to the 94.00 level on DXY[7], and this is the same area that had helped to turn-around prices shortly after this week’s open. Given the scope of the trend in USD[8] over the past month, continuation of that bullish move comes as no small surprise, but what has been a bit more noticeable over the past 24 hours has been a re-emergence of sellers in US Stocks. US Equities opened the week with
