Talking Points:
- The US Dollar[1] is on the offer this morning, continuing yesterday’s move after a failed test at resistance[2]. Adding fuel to the fire is a circulating report that indicates that the ECB may discuss options around stimulus taper [3]at their rate decision next week. This has helped to produce a bullish breakout in EUR/USD[4] as the pair is now approaching the 1.1800 level.
- The rest of this week’s economic calendar[5] is fairly light, with a flare of risk on Friday as we get a few high-impact announcements. More pressing, however, is a G7 meeting set for this weekend, and the topic of ‘trade wars’ and tariffs will surely be in the spotlight. The big question is whether that can elicit any impact to the US Dollar.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[6] or the Euro[7] are available from the DailyFX Trading Guides page[8]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[9]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[10].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[11].
US Dollar Tests Below Support
The US Dollar has posed quite the short-term reversal since the visit to resistance that we looked at yesterday morning[12]. While the Greenback was testing the topside of that confluent Fibonacci zone at the open of
