Dow Tests Key Resistance; US Dollar Holds Support At Two-Month Lows

US DOLLAR HOLDS SUPPORT AT TWO-MONTH LOWS

The US Dollar is continuing yesterday’s bounce from support after prices tested two-month lows. This level comes in around 95.67, and this is the same area that helped to bring on bounces in early-November and again last week, shortly after the 2019 open. The big question at this point is for how long might bulls be able to retain control: Two different areas of prior Fibonacci support lurk above current price action, and these levels can remain of interest for those looking at short-side strategies in the US Dollar. The first of those areas is at 96.04, as this is the 50% marker of the 2017-2018 bullish move. And a bit higher is the 96.47 level, which is the 23.6% Fibonacci retracement of the 2011-2017 major move in the currency.

US DOLLAR EIGHT-HOUR PRICE CHART

(Click on image to enlarge)

us dollar usd eight hour price chart

Chart prepared by James Stanley

THIS WEEK’S ECONOMIC CALENDAR

This week’s economic calendar is fairly light, especially in the early portion of the week. Tomorrow brings meeting minutes from the December FOMC rate hike, and Thursday brings a speech with Fed Chair, Jerome Powell. The week closes with the release of US CPI data on Friday morning, which carries the expectation for headline CPI to soften below 2%.

DAILYFX ECONOMIC CALENDAR: HIGH-IMPACT ITEMS

(Click on image to enlarge)

DailyFX Economic Calendar High Impact

Chart prepared by James Stanley

EUR/USD HOLDS RESISTANCE IN KEY ZONE

Yesterday’s resistance test in EUR/USD has seen another swing from sellers, with prices moving back into the range that’s been present for much of the past two months. As discussed in this week’s FX Setups, a topside break over the 1.1500 level could re-open the door for bullish strategies in the pair, but, as yet, bulls have been unable to evoke such a scenario. A bit of short-term support appears to be developing around a trend-line projection taken from the April and September highs.

1 2 3
View single page >> |

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.