Talking Points:
- FX Markets continue to show the general theme of congestion as another US Dollar[1] rally has fallen flat. The Greenback is now heading back towards the support zone that runs from 94.20-94.30 on the US Dollar, and this poses challenges for trend-based strategies as we’re nearing almost two full months of congestion in USD[2] price action[3].
- The highlight of this week’s economic calendar[4] is the ECB rate decision on the docket for this Thursday. Next week brings another couple of key rate decisions that market participants already appear to be positioning for with GBP/USD[5] and the BoE (next Thursday) and USD/JPY[6] and the BoJ (Next Monday night/Tuesday morning).
- DailyFX Forecasts on a variety of currencies such as the US Dollar[7] or the Euro[8] are available from the DailyFX Trading Guides page[9]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[10]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[11].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[12].
US Dollar, EUR/USD Move Deeper into Digestion Patterns
Congestion continues in the FX market[13] as the Euro[14] has been nudged-higher this morning. Of particular interest to that theme was a set of PMI reports released earlier this morning, with Germany posting a strong beat of the expectation. The expected print of 55.5 was well-eclipsed
