USDJPY To Fresh 2019 Highs As EURUSD Tests Below 1.1300

US DOLLAR BULLS REMAIN IN DRIVER SEAT

The US Dollar has opened this week’s trade by continuing the bullish trend that started around the late-January FOMC rate decision. That meeting took place on the Wednesday before last, and since then Dollar bulls have taken control of near-term price action in the currency to push up to fresh monthly highs, eclipsing the 96.68 level that held the bullish advance in the latter portion of last week. Ahead on the chart, the 97.00 looms large and a test above this zone would constitute a fresh 2019 high.

US DOLLAR EIGHT-HOUR PRICE CHART

(Click on image to enlarge)

us dollar usd eight hour price chart

Chart prepared by James Stanley

On this week’s economic calendar, the potential exists for continued USD volatility, as a slew of Fed speakers are set to give commentary each day of this week; and on the data front, US CPI is released on Wednesday, Advance Retail Sales is due on Thursday morning and U of Mich Consumer Sentiment is unveiled on Friday morning.

USD: FED-SPEAK FOR THIS WEEK (TIMES IN EASTERN)

(Click on image to enlarge)

FOMC Speakers on This Week's Calendar

Chart prepared by James Stanley

EUR/USD RIDES SHORT-TERM TREND INTO RANGE SUPPORT

For much of the past three months, EUR/USD has been exhibiting back-and-forth price action. Resistance has held for much of the period in a zone that runs from 1.1448-1.1500 while support has shown at a series of higher lows from 1.1200-1.1300.

But, over the past week and change, as the US Dollar strength has become more pronounced, EUR/USD has dropped lower with an impressive degree of consistency. On the hourly chart below, a bearish trend-line has been added to highlight this theme.

EUR/USD HOURLY PRICE CHART

(Click on image to enlarge)

eurusd eur/usd hourly price chart

Chart prepared by James Stanley

The big question at this point around EUR/USD is whether sellers can retain control as longer-term support has come into the equation. Since the bearish trend in the pair stalled-out in November, there have been numerous attempts from sellers to leave this zone behind, most recently a couple of weeks ago. But each has thus far failed, and that can make the prospect of chasing this move in the early portion of this week as a challenging item.

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