Talking Points:
- The US Dollar pullback has continued into a second day after USD[1] 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[2], GBP/USD[3], USD/JPY[4] and NZD/USD[5].
- 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.
- DailyFX Forecasts have been updated for Q2, and 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 Pullback Produces Setups on Both Sides of USD
The US Dollar is continuing to pull back[10] after having run-in to resistance at the 94-handle on DXY[11] 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
