US Dollar Trends Lower Ahead of FOMC Minutes (Webinar)
- US Dollar Trends Lower Ahead of FOMC Meeting Minutes
- EUR/USD Sentiment remains extreme; IG Client Sentiment -2.7
- USD/JPY Sentiment remains positive; IG Client Sentiment +1.7
In this webinar, we discuss the US Dollar going into this afternoons FOMC meeting minutes release. Currently the US Dollar is trending lower, with the DXY remaining beneath both its 10 day EMA (exponential moving average) and 200 day MVA (simple moving average). If prices continue to trend lower on the today’s news, traders may look for the US Dollar to retest current 2017 lows. In the event of a bullish reversal, traders should first look for prices to trade back above the 10 day EMA on the DXY at 97.83.
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Daily DXY Chart with Averages
(Chart Prepared by Walker England)
Currency pairs to watch include both the EUR/USD and USD/JPY. IG Client Sentiment for the EUR/USD reads at -2.75. With 73% of traders net-short, this is typically seen as a bullish signal. Alternatively, sentiment readings for the USD/JPY remain positive. While not at an extreme, a reading of +1.74 does have a bullish bias with 64% of traders currently net long the market. Traders should continue to monitor both price and sentiment figures through today’s news to identify if any shifts in the market are developing.
Why and how do we use IG Client Sentiment in trading? See our guide.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.