– The US Greenback is discovering a bid right now in opposition to the Euro and the Japanese Yen, two currencies it has struggled in opposition to for the reason that begin of November.
– Regardless of a push to contemporary month-to-month lows, AUD/USD has reversed and is now a possible bullish key reversal on the day.
– Retail dealer sentiment now suggests combined circumstances for the US Greenback across the Thanksgiving vacation.
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The US Greenback has stabilized forward of the vacation, and that could be nearly all of the buck will do. The steep drop on November 14 discovered the DXY Index buying and selling between the October 26 bullish exterior engulfing bar low and the July 26 baerish engulfing bar excessive.
Since then, over the previous week, worth has but to depart this newly-minted vary; and given the liquidity drain anticipated over the approaching days, it isn’t precisely the best circumstances for a breakout.
Regardless of holding assist close to 93.48, technical harm has been performed to the US Greenback’s rally from the September lows. Not solely has the three-week vary from October 26 to November 14 broke, however so too has the uptrend from the September Eight, 20, and October 13 lows. Momentum has swung decrease as properly, with the DXY Index nonetheless buying and selling under its each day Eight-, 13-, and 21-EMAs, and MACD and Stochastics trending decrease (albeit in bullish territory nonetheless).
For now, all this equates to is it being acceptable to carry a broadly impartial US Greenback bias for the approaching days; there could also be particular person situations during which a specific pair might be labeled ‘bullish’ or ‘bearish’ in any other case.
As the vacation nears, we’ll be watching AUD/USD (bullish key reversal forming right now) and USD/CHF (holding zero.9840) for potential alternatives. See the above video for full technical concerns in AUD/USD and USD/CHF, in addition to within the DXY Index, EUR/USD, GBP/USD, and USD/JPY.
Learn extra: FX Markets Look to Pockets of Occasion Threat Throughout US Vacation Week
— Written by Christopher Vecchio, CFA, Senior Foreign money Strategist
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