Talking Points:
- US Dollar bulls continue to push and prices have made a move back to the long-term resistance that exists from 94.19-94.30 in DXY[1]. While there’s something to be said about USD[2] strength showing ahead of a well-anticipated rate hike in a couple of weeks, the more interesting facet of this move is continued weakness in EUR/USD[3] on the back of Italian politics; begging the question – are we on the verge of another European financial crisis?
- Next week’s economic calendar is loaded with USD drivers, and Monday is a holiday in the United States in observance of Memorial Day. We previewed next week in our webinar yesterday, looking at a variety of setups as we move towards the end of May. That video is available directly from the following link: US Dollar Price Action Setups Ahead of a Loaded USD Economic Calendar[4].
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[5]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[6]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[7].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[8].
US Dollar Back to Resistance
Yesterday’s pullback in the US Dollar didn’t last for long, as bulls came back during the Asian session to drive the Dollar right back to the area of resistance that we looked at yesterday[9]. This sets the
