US Dollar Tests Fresh Yearly Highs Ahead Of December FOMC

US DOLLAR TESTS FRESH YEARLY HIGHS – DECEMBER FOMC IS NEXT WEDNESDAY

The US Dollar has caught a bid this morning to push up to fresh yearly highs, breaking through the recent congestion to briefly cross-above the 97.69 area that had helped to hold resistance in early-November. At this stage, USD bulls have shown no signs yet of letting up, and next week brings a FOMC rate decision in which the bank is looking to push the fourth rate hike of 2018.

US DOLLAR FOUR-HOUR PRICE CHART

us dollar usd four hour price chart

Chart prepared by James Stanley

NEXT WEEK’S ECONOMIC CALENDAR: THE FINAL FULL WEEK OF 2018

Next week is the final full week of the year, as the following week brings the Christmas holiday and the week after brings New Year’s. This will generally bring along low-liquidity conditions, and that can amplify the potential moves around some of these very key themes, such as FOMC rate policy, Trade Wars or Brexit.

The highlight of next week’s economic calendar is the FOMC rate decision on Wednesday. A rate hike here has long been expected for the Fed’s fourth move of the year; but the bigger question will be how aggressive the bank is looking to mold policy in 2019. So, as has become the norm, the focus will likely be on the bank’s forward-looking projections rather than the rate decision itself. There are also Central Bank rate decisions out of Japan on Wednesday night and the UK on Thursday morning.

DAILYFX ECONOMIC CALENDAR: HIGH-IMPACT EVENTS FOR THE WEEK OF DECEMBER 17, 2018

DailyFX Economic Calendar High Impact for the Week of December 17, 2018

Chart prepared by James Stanley

EUR/USD FRESH DECEMBER LOWS AS PRICES TEST BELOW TRIANGLE SUPPORT

EUR/USD has been fairly tame over the past month, all factors considered. While trends have been showing in fits and starts throughout the year on the pair, the past month-and-a-half of price action has brought upon consolidation as EUR/USD has traded deeper within a symmetrical triangle, and that triangle takes place between both key support and resistance.

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.