(MENAFN- DailyFX) In this webinar, we used to look at macro markets ahead of tomorrow's US CPI numbers followed by the release of meeting minutes from the Federal Reserve's March rate hike. Ahead of these drivers, the US Dollar is weak, continuing the trend that's been present for more than a year now. The past couple of weeks saw a bit of strength develop in the Greenback, and that was erased around last Friday's Non-Farm Payrolls report; and USD weakness has continued as a dominant theme since. In this webinar, we looked at setups around the US Dollar.
Talking Points:
- If you're looking to improve your trading approach, our Traits of Successful Traders research could help. This is based on research derived from actual results from real traders, .
- If you're looking for a primer on the FX market, we can help. To get a ground-up explanation behind the Forex market, .
If you'd like to sign up for our webinars, we host an hour-long event on Tuesday and Thursday, each of which can be accessed from the below links:
Tuesday:
Thursday:
S & P 500 Testing Pent Up Resistance
We started off by looking at US equities, as there was a potential late-session move brewing. The S & P 500 pulled back in February, and as we came into March, hope remained that prices would move back to prior highs. That didn't happen, as sellers came in at the 78.6% of the February sell-off to push prices back down. This ran all the way until early-April, when move came into play at 2554, and since then we've seen the build of higher-lows in the index. Meanwhile, resistance remains after multiple tests, and if we do see this area give way, it could lead to a sharp topside break towards 2700.
US Dollar Bears Come Back with Force
Last week ahead of Non-Farm Payrolls we looked at . The Greenback had risen up to a prior area of resistance around 90.60 and paused as we approached the release. But, when , Dollar bears were to 90.00. That weakness has continued this week, and prices are now holding in an area that had produced some . This keeps the door open for short-side in the Dollar.
EUR/USD Bounces From Support
On the short-side of the US Dollar . The pair continues to hold on to the 2017 bullish trend despite last week's test of trend-line support, and this keeps the door open for bullish continuation. In the webinar, we looked at a shorter-term zone that runs from 1.2335-1.2350, and this is a zone that we've been using for a couple of months now while EUR/USD has been range-bound after that 1.2500 test in January. This area had helped to offer resistance last week, and now that price is trading back above this level, .
GBP/USD Moving Towards March Highs
On the short-side of USD, Cable has been a bit more attractive of recent. ahead of NFP, and . At this point, price action in GBP/USD is very near those March highs, and this makes the prospect of near-term exposure a bit less attractive. We focused-in on a zone of potential support around 1.4118-1.4125 that could be interesting for higher-low support plays and, if that doesn't hold, the same area we'd looked at last week around 1.4067-1.4088 could be usable.
USD/CHF Watch for Bullish Trap
We looked at . And looking at the four-hour or daily charts, that theme would appear attractive, as we have a bit of higher-low support showing around a prior bearish trend-line projection. But going down to shorter-term charts urges caution, as we've seen the build of lower-lows and lower-highs. This may need a re-test of the .9500 before the bigger picture uptrend is ready for resumption.
USD/JPY Carrying Bullish Continuation Potential
We've been following the reversal in , and after last week produced a bullish break of the bearish channel, we started to focus on the higher-lows that began to print in the pair. Another higher-low showed up yesterday, and this came-in right on top of . This keeps the door open for a re-test of the 107.90 swing-high that came in in late-February. We noted the lack of a clean setup here along with the wide distance to that prior swing-low. This would make near-term bullish plays in the pair rather unattractive. Instead, we looked to EUR/JPY and GBP/JPY for Yen-weakness.
GBP/JPY Jumps up to 152.00
We'd looked at , seeking out higher-low support in the area that runs from 150.43-150.80. After a visit to the zone, bulls took over to push prices up to fresh two-month highs, and at this point, the point of resistance that we looked at yesterday can now be re-purposed as support. This price comes in at 151.39, and this is the 76.4% retracement of the Brexit-move in the pair.
USD/CAD Breaks Through Support, Time to Flip?
We've been following that has recently been smashed by sellers. This nixes the topside setup that we were looking at last week, and starts to open the door for short-side setups. We looked at how the four-hour and hourly charts could be used for such a purpose.
To read more:
Are you looking for longer-term analysis on the U.S. Dollar? Our have a section for each major currency, and we also offer a plethora of resources on -pairs such as , , , . Traders can also stay up with near-term positioning via our .
Forex Trading Resources
DailyFX offers a plethora of tools, indicators and resources to help traders. For those looking for trading ideas, our shows the positioning of retail traders with actual live trades and positions. Our bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our has intra-day interactions from the DailyFX team. And if you're looking for real-time analysis, our offer numerous sessions each week in which you can see how and why we're looking at what we're looking at.
If you're looking for educational information, our is there to help new(er) traders while our is built to help sharpen the skill set by focusing on risk and trade management.
--- Written by James Stanley, Strategist for DailyFX.com
To receive James Stanley's analysis directly via email, please
Contact and follow James on Twitter:
MENAFN1004201800760000ID1096719524
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.