Talking Points:
- The US Dollar[1] stopped short of a big zone of resistance yesterday just ahead of the release of FOMC[2] meeting minutes from the earlier-May rate decision. After the release of those meeting minutes, prices have been tilting-lower, and the US Dollar is continuing to show a series of shorter-term lower-lows and lower-highs. Meanwhile, EUR/USD[3] is showing some element of support around a big zone of Fibonacci support has come into play as buyers are attempting to take a stand.
- Next week is interesting: Monday is a holiday in the United States, but the rest of the week brings a high-impact release each day of the week. Consumer Confidence is released on Tuesday followed by GDP, PPI and Advanced Trade Balance on Wednesday. Core CPI is released on Thursday, and Non-Farm Payrolls and NFP comes out on Friday. This presents a ripe environment for USD-volatility. The next FOMC meeting is two week later.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
US Dollar Drops From Resistance After FOMC Minutes Release
Yesterday’s release of FOMC minutes seemed to pave the way for a rate hike at the bank’s next meeting in June. This has long been expected, so it
