Good morning traders. This week has seen us looking for the completion of a bullish move in the Dollar Index (DXC) and it has been agonizingly slow. However, with the move higher overnight, we are now clearly in an area where we could see prices reverse.
Note: the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at trading opportunities over the next several hours. These are not official trade recommendations, merely guidelines and forecasts
North American Short-Term Outlook:
- Dollar Index (DXC): Neutral to Bearish as of now I have isolated the likely resistance area at 81.03-81.06. Let's see how that level reacts to prices. Looking for a reaction lower.
- EUR/USD: Neutral to Bullish the mirror image of DXC. Looks like I can now fine tune the downside support/target are at 1.3427 - looking for a reaction to the upside from there.
- EUR/CAD: Neutral to Bearish I was expecting more of a move to the upside (correction) but given that prices are grinding higher, it seems like this move higher will be short-lived. That said, I am looking at 1.4500 as an area to consider getting short.
- AUD/CHF: Neutral to Bullish from yesterday: I want to see prices correct a bit lower towards .8500-.8480 before getting long. A break below .8447 negates the bullish outlook. Now, let's get that catalyst to push prices higher as the forecast support level is holding in well at present.
- USD/CHF: Neutral to Bearish looking to mimic the movements in DXC, let's see if .9054 can cap this move higher and force prices lower.
Dave
Recommended Content
Editors’ Picks
AUD/USD: Extra gains in the pipeline above 0.6520
AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.
EUR/USD meets support around 1.0650
EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.
Gold surpasses $2,300 as Dollar tumbles
The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.
Bitcoin price reclaims $59K as Fed leaves rates unchanged
The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting.
The market welcomes the Fed's statement
The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.