Talking Points:
- The US Dollar has fallen-back to find short-term support at a key area on the chart. This is the potential support zone that we had looked at yesterday taken from the resistance area that held the highs in DXY[1] for a month-and-a-half. The zone runs from 95.00 up to 95.53, but it appears that bulls are already responding to the topside of the zone around 95.53, which was the double top produced by June price action in the US Dollar.
- The economic calendar[2] remains rather light over the next day-and-a-half, up to the release of FOMC[3] meeting minutes from the earlier-August rate decision. Very little happened at that meeting, so the minutes are likely devoid of any game-changing items. More pressing to markets will probably be the minutes release from the most recent ECB rate decision, set for release on Thursday morning, followed by July inflation numbers out of Japan a little later in the day. Friday marks the start of the Jackson Hole Economic Symposium[4].
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10].
