Talking Points:
- So far Q3 has brought quite the change-of-pace in US Dollar price action, and the Greenback is continuing to slide after falling below a key area of support on Friday following Non-Farm Payrolls. With a highly-pertinent inflation print on the calendar for this Thursday, expect the US Dollar to stay in-focus as the prospect of a further EUR/USD recovery hangs in the balance[1].
- In this week’s FX Setups[2], we looked at short-USD exposure against both the Euro[3] and the Swiss Franc[4], but the other side of the Greenback has an interesting setup in USD/CAD[5]. The Bank of Canada hosts a rate decision on Wednesday, and USD/CAD is testing a confluent area of support as we open this week’s price action.
- DailyFX Forecasts have been updated for Q3 and are available on a variety of currencies such as the US Dollar[6] or the Euro[7]. These can be accessed 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].
The US Dollar’s Q3 Slide Continues
The Q3 sell-off in the US Dollar is extending into a second week[12], and DXY[13] is sliding further-below the support zone that we were following last week. Going
