Talking Points:
- The US Dollar is extending yesterday’s rally after the Monday test of Fibonacci support. We have high-impact USD[1] data set to be released on both Thursday and Friday, along with a couple of European inflation prints on the economic calendar. This can keep volatility running across the Greenback as EUR/USD[2] is back to testing the 1.1600-handle.
- This move of US Dollar strength has come along with another bearish push in both EUR/USD and GBP/USD[3], both of which showed rebounds from key support areas last week. In EUR/USD, the area of interest is the double-bottom around 1.1510, while Cable is fast approaching the 38.2% retracement of the ‘Brexit move’ in the pair.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
US Dollar Extends Bounce from Fibonacci Support
The US Dollar is continuing yesterday’s rally[10] after a test of a key support zone on the chart. We’ve looked into this area over the past few days[11], as the prices of 94.20-94.30 are a confluent area of Fibonacci support that had previously helped to define resistance in DXY[12]. This
