EURUSD, GBPUSD, USDJPY, USDCAD Talking Points:
- Yesterday’s FOMC rate decision has pushed the US Dollar lower across-the-board.
- That USD-weakness has been unevenly distributed, however, and this can help to highlight strategy parameters for the days or perhaps even weeks ahead.
Yesterday’s FOMC rate decision has created some large reverberations around global capital markets. The Fed made a dovish push and this helped to push the Dollar lower, lifting pairs like EUR/USD and GBP/USD in response. But elsewhere, markets like Gold or US Stocks have flown-higher in the aftermath of FOMC.
In this webinar, I looked across a variety of markets in the effort of devising strategy.
US Dollar Nears Key Area of Support
The Dollar has put in a very visible drop, testing below trend-line support from the rising wedge pattern that’s recently built. Below this the 96.47 level looms, and a break-below here opens the door for a run towards 95.50, 95.00, and perhaps even a zone that exists from 93.86-94.20.
US Dollar Weekly Price Chart
Chart prepared by James Stanley
EURUSD Deeper Squeeze Potential
I had looked at the topside of EURUSD coming into this week, looking for a short-squeeze scenario to push prices-higher. This week saw support come into play off of the familiar 1.1187 level, after which the wave of USD-weakness helped to propel prices-higher. This keeps the door open for topside potential in the pair.
EURUSD Eight-Hour Price Chart
Chart prepared by James Stanley
GBPUSD Rally to Resistance After Dovish FOMC, BoE
This morning brought a rate decision out of the UK and the Bank of England had a similar dovish lean; although this is far less new than what happened at the Fed yesterday, helping to explain the net move of strength in the pair over the past two days. But – prices have moved up to find resistance at a prior area of support, and as discussed this morning, this could be of attraction for those looking to fade this recent round of USD-weakness.
GBPUSD Daily Price Chart
Chart prepared by James Stanley
USDCAD Smashed to Fresh Lows, Potential Flip
I came into this week looking for strength in USDCAD. That has not worked out as the push in the US Dollar has shown very visibly here. This opens the door to bearish potential in the pair, and that prior area of support that runs around 1.3250-1.3300 may soon become lower-high resistance potential.
USDCAD Daily Price Chart
Chart prepared by James Stanley
USDJPY Nears 107.00 as Pair Falls to Five-Month-Lows
On the side of USD-weakness, I’ve been following USDJPY with a key zone of resistance in-play. This zone runs from 108.47-108.70, and this has held the highs over the past two weeks before this recent run of USD-weakness came into play. This can keep the door open for further downside in the pair.
USDJPY Daily Price Chart
Chart prepared by James Stanley
Gold Prices Jump to Fresh Five-Year-Highs
I had looked into this one earlier this morning as Gold has put in a significant move in the wake of FOMC. Prices have jumped up to a fresh five-year-high, breaking-above a number of resistance points in the process. This highlights the potential peril in chasing what’s become a well-developed move. I looked at a couple of ways to set this one up earlier this morning and in the webinar, I went a little bit deeper on the matter.
Gold Price Weekly Chart
Chart prepared by James Stanley
WTI Crude Oil – From Support to Resistance
I had looked at the support side of Oil on Tuesday, coming in around the 51.50 area on the chart. And prices have already jumped up to another key zone around 57.34-57.85. This can be a difficult area to chase, but a pullback could re-open the door to a continuation of strength; and that zone of potential exists around the 55-handle.
WTI Crude Oil Daily Chart
Chart prepared by James Stanley
To read more:
Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts have a section for each major currency, and we also offer a plethora of resources on Oil or USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our IG Client Sentiment Indicator.
Forex Trading Resources
DailyFX offers an abundance of tools, indicators and resources to help traders. For those looking for trading ideas, our IG Client Sentiment shows the positioning of retail traders with actual live trades and positions. Our trading guides bring our DailyFX Quarterly Forecasts and our Top Trading Opportunities; and our real-time news feed has intra-day interactions from the DailyFX team. And if you’re looking for real-time analysis, our DailyFX Webinars offer numerous sessions each week in which you can see how and why we’re looking at what we’re looking at.
If you’re looking for educational information, our New to FX guide is there to help new(er) traders while our Traits of Successful Traders research is built to help sharpen the skill set by focusing on risk and trade management.
--- Written by James Stanley, Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
