- The US Dollar pullback has continued into a second day after USD found resistance at the 94-handle shortly after this week’s open. This week’s economic calendar is light on USD-items, and this produces a backdrop where the Dollar can cut in either direction. We look at both sides of the argument below, plotting approaches and investigating potential setups in EUR/USD, GBP/USD, USD/JPY and NZD/USD.
- Tomorrow brings UK inflation numbers for the month of April, and this has become a big push-point for the British Pound. Expect volatility to continue in Sterling, as Friday brings another piece of important data with the release of Q1 GDP numbers out of the UK.
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US Dollar Pullback Produces Setups on Both Sides of USD
The US Dollar is continuing to pull back after having run-in to resistance at the 94-handle on DXY yesterday morning. After a quick test of support around the week-open gap, sellers came back to punch prices down to the ‘s2’ zone of support that we were looking at. This comes in at an interesting level, as 93.35