Strong consolidation in the forex market – dollar VS euro.

After a series of central bank meetings, the foreign exchange market entered a phase of strong consolidation.

USDX consolidation

This consolidation is clearly visible by the damping fluctuations in the US dollar index – USDX. Continue reading

The key to understanding the current situation in the Forex

Take a look at the 4-hour dollar index (USDX) futures chart. We see very strong consolidation in a narrow range (blue rectangle).

USDXH4-130819
Traders are in a state of uncertainty about the future prospects of the US dollar. Continue reading

US dollar – change of the long-term trend? Do not hurry…

The week before last week was marked by the most significant weekly decline in the US dollar index (USDX) for the entire last period of its growth. And this is more than one year.

USDX Weekly-290619

During the entire last year, investors and speculators bought the US dollar at all its falls and were in profit. Continue reading

Geometric metamorphosis of the US dollar index (USDX)

The upward trend of the US dollar in recent days has slowed down in its development. Is it just a pause in the foreign exchange market or signs of an approaching reversal?

Technical analysis of the dollar index-111218

Over the past few days, the US dollar (USDX) has been consolidating around the level formed by the previous high on the value of 96.836. Continue reading

Europe challenges dollar dominance

Trade wars and an endless stream of US sanctions force even America’s close allies to work out measures to protect their own financial systems and business.

EURvsUSD

The European Commission plans in the near future to submit its proposals for replacing the dollar in European financial transactions. Continue reading

The dollar fell after another statement by Trump (continued)

This post continues the previous article on Trump Trading. Read it on the link “Can Trump stop the growth of the dollar on forex?“.

The fall of the dollar after a statement by Trump (USDXDaily)

In an interview with Reuters on Monday, President Trump touched on the topic of US monetary policy. Continue reading

Can Trump stop the growth of the dollar on Forex?

On August 8, 2018, the Bloomberg news agency published a very entertaining material entitled “JPMorgan Says Trump May Sell Dollars as Weapon in U.S. Trade War“. Trump-dollar This article (oddly enough) came out on the eve of the fact that the dollar (USDX index) broke through the mirror resistance at 95.00 and left the medium-term consolidation zone. Continue reading

China stopped the growth of the US dollar

The last three weeks, the US dollar index (USDX) is in consolidation.

USDX-Weekly-040718

The dollar index was never able to overcome the key resistance at the long-term level of 95.00. Continue reading

The growth of the US dollar on forex – ahead a strong resistance

The last five weeks are continuing the US dollar rally in the forex market.

Forecast of the US dollar

Next week, the US dollar index (USDX) will approach a strong resistance. Continue reading

The growth of the dollar stopped at the key levels – the analysis of the main pairs on Forex

As a result of the rapid growth of the US dollar, the main currency pairs on forex reached key levels.

Analysis of the dollar index

Exit from the technical figure of the triangle, the breakthrough of the mirror level of 90.850 and the exit from the long-term descending channel led to the rally on the US dollar (USDX).

The upward movement stopped by testing the next strong mirror resistance level at 92.400.

At the same time, the euro reached the level of 1.20, the British pound – 1.36, the Australian dollar fell to the key level of 0.75, the Canadian dollar reached 1.29, and the Japanese yen closely approached the level of 110.00.

EUR analysis-020518

The euro after a long consolidation at the perennial highs came down from the long-term rising channel. This was also due to the breakout of the triangle down and the breakdown of key support 1,21550.

Currently, this level is a mirror resistance and with a high probability the euro can test it before continuing its decline.

Analysis of the British pound

The fall of the British pound was due to poor economic data and, as a consequence, a decrease in the probability of an increase in the interest rate by the Bank of England. The pound left the growing channel for the first time in a long time and stopped only at a strong mirror support level of about 1.36.

Today, the data on the index of business activity in the construction sector in the UK is expected, but they are unlikely to help reverse the trend to reduce the pound due to extremely bad weather in the reporting period.

The Fed’s decision on the interest rate is expected this evening. Since this meeting will not be accompanied by a press conference, experts do not pawn the possibility of raising rates on it. The main attention will be paid to the accompanying statement to the decision. In the case of a more rigid position of the regulator, one can expect a continuation of the trend towards strengthening the US dollar.

Let me remind you that the latest data on inflation in the US, although it showed a slight slowdown in inflation over the past month, annual inflation reached target 2.0%. This gives all grounds for raising the rate at the next meeting.

Correction on the dollar, which we are observing today, is quite possibly connected with the fixing by the bulls on the dollar of profit in the lead-up to the Fed meeting to reduce risks.