US Dollar Talking Points:
- The US Dollar has moved up to a fresh seven-week-high[1] as selling in the Euro[2] has remained prominent upon the open of a new week. EUR/USD[3] is pulling back from a fresh seven-week-low as worries around Italy continue to permeate through global markets[4], and European stocks have taken a nasty turn over the past few weeks to reflect this enhanced risk. The DAX[5] is nearing a big support zone, the same that helped to arrest the Q1 declines in March of this year. Can a re-test here elicit a similar response? Or will this area of prior support be a mere speed bump on the way to fresh 19-month lows?
- Q4 has not been light on volatility so far and a number of themes remain of interest. The scenario around Italy has stolen the headlines, and the attention of many market participants; but similar stretches earlier this year saw investors step back from the proverbial ledge of risk aversion. US stocks put in a fairly visible support bounce during yesterday’s US equity session, with both the S&P and Dow reacting near key zones of support that we looked at ahead of this week’s open[6]; and if we do see continued respect of those prior lows, the door could soon re-open to bullish continuation strategies in US equities.
- 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
