FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
FxPro information and reviews
OctaFX information and reviews

A chance for USD to counter-attack this week

26 April 2021

After a minor shake-up last week, the buying and selling of equities and other risky assets in USD returned to the markets. The S&P500 and Dow Jones 30 futures are cruising near historic highs, having found buyers on the slight dip in the middle of last week. The dollar index is down to the levels of early March, under 91. The trend lines of the 50- and 200-day moving averages are above the price, confirming the prevailing downtrend.

EURUSD surpassed the 1.21 level, confirming the bulls’ victory on the 1.20 threshold. The picture mirrors the dynamics of the dollar index, where the euro has the most weight.

This weakening is likely to be a global trend for the coming years on several factors, from investors’ appetite for risky assets on an economic recovery to the sharper tax hikes in the USA compared to other countries. And it could be a big problem for traders if they get on the wrong side of the trend. It could very well turn out to be a similar reversal of the Dollar that we saw in 2002. That is, with minor corrections, it could be a weakening trend for years, capable of taking the dollar index under the lows of 2008 when it was down to 70 (it is currently at 90.6).

At the same time, the currency market is not a one-way street. Short-term fluctuations can be pretty substantial and frequent, so the Dollar could end up beating the competition this week.

The last week of the month is characterised by an increased pull into the Dollar. On top of that, the DXY is approaching the oversold area of the RSI on the daily charts after an almost unstoppable decline this month. Proft taking and rebalancing this move promises to support the Dollar in the short term. Amongst the fundamentals, potential volatility risks due to Wednesday’s Fed meeting are worth noting. Potentially, the FOMC comments could not only break trends but also reverse technical signals. However, this rarely happens as Powell, like most central bank governors, prefers to minimise market surprises by signalling in advance about possible changes.

Thus, near the end of this week, the USD has potential for strengthening due to seasonal and technical factors, as well as some nervousness in the markets ahead of the FOMC. However, a small shake-up has little chance of breaking the trend of a weaker dollar, which will be a year old in May.




The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

30 Nov 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021

EUR/USD seems vulnerable near multi-month low
EUR/USD seems vulnerable near multi-month low

The EUR/USD pair remained on the defensive through the Asian session and was last seen trading around the 1.1270-65 region, just a few pips above a 16-month low touched on Friday...

22 Nov 2021

EUR/USD snaps two-day rebound near 1.1350 as USD tracks firmer yields
EUR/USD snaps two-day rebound near 1.1350 as USD tracks firmer yields

EUR/USD stays pressured around an intraday low of 1.1352, down for the first time in three days ahead of Friday’s European session. In doing so, the major currency pair reacts...

19 Nov 2021

HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.