Talking Points:
- The US Dollar has continued to drop after Thursday’s reversal from resistance, and prices are already back down to the Fibonacci support zone that had helped to bring out buyers last week. Will this area hold through another test, or will this Dollar pullback driver deeper towards prior July lows?
- The highlight of this week’s FX calendar[1] is the European Central Bank rate decision scheduled for Thursday. This is the first such meeting since the bank’s June announcement of stimulus exit, and this is the first opportunity for the ECB to give some clarity around items such as what they might do with reinvestment of coupons or maturing principal payments, or how the bank might manage interest rate protocol should inflation come-in higher-than-expected.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[2] or the Euro[3] are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
US Dollar Drop Continues Back to Fibonacci Support Zone
The Thursday reversal in the US Dollar[8] has continued into a fresh week, as the bearish move on Friday caught another extension that pushed prices back into a key zone of Fibonacci support. This is around the same area that had come into play last Tuesday morning
