Talking Points:
- US Dollar Trades Off of 2017 Lows
- EUR/USD Focuses on Thursday’s ECB Rate Decision
- GBP/USD Election News Drives Trend
In this webinar, we discuss the US Dollar ahead of this weeks stacked economic calendar. Traders will be primarily watching for Thursday’s ECB rate Decision, and the outcome of the upcoming UK election. Technically the US Dollar is bouncing for Monday, but the DXY remains trading beneath both its 10 day EMA (exponential moving average) and 200 day MVA (simple moving average). If the US Dollar weakens further this week, traders should look for prices to trade through the standing low at 96.65. Alternatively if prices rise, traders should first look for the US Dollar to trade above its 10 day EMA at 97.28.
New to trading or looking for other strategies? You may enjoy our trading guides
Daily DXY Chart with Averages
(Chart Prepared by Walker England)
With a series of large news events on the horizon, traders should continue to monitor both the EUR/USD and GBP/USD this week. Currently IG Client Sentiment for the EUR/USD reads at -2.41. 71% of traders are net-short the pair suggesting that the EUR/USD may rally higher. Sentiment figures for the GBP/USD are also negative. While not as extreme as the EUR/USD, a reading of -1.38 does have a bullish bias with 58% of traders currently net-short the pair. As this week’s trading develops, traders should continue to monitor sentiment for both pairs. A move to new negative extremes may suggest new highs for the EUR/USD and GBP/USD. However if prices decline, traders should look for both sentiment values to neutralize in the short term.
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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