Talking Points:
- Global equities remain on the move and the Nikkei has broken out from a big level of resistance over the past few trading days, adding a bit of resolution to an ascending triangle formation that’s been building over the past few months. Later tonight/early-Wednesday brings a Bank of Japan rate decision with very few expectations for anything new. Will the BoJ provide any hints or clues towards future changes towards their QE policy that just so happens to buy ETF’s of the very same indices that have been breaking out ahead of the meeting?
- In FX-land, the week started with haste but has since calmed, as both EUR/USD[1] and the US Dollar[2] are holding at key areas on the chart. In EUR/USD, prices have returned to the big resistance zone that we’ve been following that runs from 1.1709-1.1750. Bulls don’t look to soon let up, so at this stage a resistance break is starting to feel more likely. In the US Dollar, on the other hand, prices have built into a descending triangle formation as the Dollar continues to sit on support.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[3] or the Euro[4] 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].
