Video: Dollar Breaks Before Fed, Greece and RBNZ Other Key Events
• USDollar broke critical support and looks more like a true reversal...before the Fed and GDP print
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We don't often see key technical breaks before the release of critical event risk. But, that is what happened for the Dollar this past session. With 1Q US GDP and the FOMC rate decision scheduled for release in the upcoming session, the Dow Jones FXCM Dollar Index (ticker = USDollar) made an out-and-out bearish move after seven weeks of consolidation. Across the majors, that would translate into an extended rally for GBPUSD and a high-profile AUDUSD breakout. Yet, neither EURUSD nor USDJPY marked their own critical Dollar breaks. Tension is high and market potential is likely off the charts for the US event risk ahead. Yet, that isn't the only theme and event risk to watch for moving forward. The RBNZ rate decision will deliver a decisive outcome for a Kiwi that offer a number of tempting technical setups. Alternatively, the Euro is facing a convoluted situation between Greece, data and QE. Then there will be the lingering uncertainties for the Pound and Aussie Dollar with UK elections and RBA rate decision respectively next week. We discuss these events, their risks and opportunities in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.