US Dollar, EUR/USD, AUD/USD Talking Points:
- Today marks the Q3 close and the next two days bring a busy economic calendar[1].
- USD[2] strength has shown in September but that’s been a change-of-pace to the bigger-picture trend of weakness. Which will take over in Q4?
- The analysis contained in article relies on price action[3] and chart formations[4]. To learn more about price action or chart patterns, check out our DailyFX Education[5] section.
So we’re in the final hours of Q3 and the rest of this week brings some high-impact data out of the United States. This could serve to extend the near-term bullish trend in USD or, perhaps, may help to bring bears back into the mix to re-test those two-year-lows that came into play earlier this month.
Tomorrow could be especially pensive as we get both PCE and PMI numbers out of the US. The PCE number will give some insight into inflationary pressure; and the day after brings Non-Farm Payrolls[6] so market participants will get an updated view on the employment picture out of the United States. Collectively, these data outlays can help to re-frame the September outlay that saw a noticeable change-of-pace in both stocks and currencies.
US Dollar: Will September Close as Bullish Engulfing?
Coming into September the US Dollar[7] was beset by a sell-off that had held since the March spike. Prices in USD pushed down to fresh two-year-lows on the first day of the month[8], running into a giant area of confluent support. That’s where matters begin to shift, and after a support hold in the first couple of weeks of September, buyers got a bit more
