The below left is the daily time frame of FXCM's USDOLLAR index. After a parabolic rise since 10 March, the greenback is holding at 12,825. The daily RSI is overbought (aqua ellipse) and is likely to normalise in the near term. The right chart shows the index's H4 time frame. Here the green 5-period EMA has crossed below the orange 10-period EMA and the stochastic has turned down. These are bearish developments as the market digests the Fed's announcement yesterday to backstop the US economy and launch unlimited QE. If the EMAs develop further angle and separation it will likely be on the back of further buck weakness.
Past performance is not an indicator of future results
CHART SOURCE: FXCM MARKETSCOPE 2.0
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EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
Will Gold reclaim $2,400 ahead of Powell speech?
Gold price consolidates the rebound below $2,400 amid risk-aversion. Dollar gains on strong US Retail Sales data despite easing Middle East tensions. Bullish potential for Gold price still intact on favorable four-hour technical setup.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.