FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
41 945.61

Technical Outlook: Dollar Shaky Ahead Of Fed Minutes

7 April 2021

The last two days have been rough for the Dollar. Since the start of the week, it has depreciated against almost every single G10 currency excluding the Canadian Dollar and British Pound. Weakening US Treasury yields weighed on the greenback while rallying equity markets hit demand for the safe-haven currency.

Given how the Dollar Index is trading below the 92.50 level this morning, could this signal further downside in the week ahead?

Fundamentals: Fed meeting minutes

Much attention will be directed towards the minutes of the last FOMC meeting which will be released at 18:00 GMT Wednesday. Investors will closely scrutinize the minutes for fresh clues about what policymakers were thinking about inflation and the timeline for interest rate increases. Given how Federal Reserve policymakers were optimistic about the U.S. economic outlook during the March meeting, the minutes are likely to echo a similar tone. However, doves are expected to remain in the vicinity - especially after a majority of policymakers indicated that interest rates will not be raised until 2024.

Back to the technicals…

The mighty Dollar is not looking so mighty on the Daily charts. Yesterday’s close below the 92.50 level may encourage a decline towards 91.70 and 91.35, respectively. Despite the recent losses, bulls still have a chance to fight back. The MACD is trading above 0 while prices are marginally above the 20 Simple Moving Average. A solid push back above 92.50 may open the doors towards 93.00 and 93.47.

Weekly chart signals weakness

Things started going downhill for the DXY after prices failed to break above the 93.47 level last week. Although the candlesticks remain in a weekly bullish trend, the MACD remains below 0. If the downside momentum results in a breach below the 91.50 support, this could signal further a selloff towards 89.00. For bulls to jump back into the game on the weekly charts, a solid weekly close above 94.75 needs to be achieved.

Same story on the monthly

The trend remains bearish on the monthly charts. There have been consistently lower lows and lower highs while the MACD trades below 0. A solid monthly close below 92.00 may invite a decline towards 90.60, 89.20 and 88.00, respectively.  If 92.00 proves to be reliable resistance on the monthly timeframe, a rebound towards 94.00 and 94.80 could be on the cards.



Trading the BoE and FOMC meetings
Trading the BoE and FOMC meetings

The FOMC and the BoE meeting are firmly in our sights now, and positions and exposures will need to be managed accordingly. Certainly, the FOMC meeting could...

22 Sep 2021

Stocks bounce back after Evergrande panic
Stocks bounce back after Evergrande panic

As investors increasingly liken the Evergrande crisis with the collapse of the Lehman Brothers in 2008, they remain in the dark about the Chinese government's intentions...

21 Sep 2021

Oil Was Put on Hold
Oil Was Put on Hold

The oil price is falling after rallying before. Early in another September week, Brent is trading at $74.50 and has a lot of room to correct. The strong greenback...

20 Sep 2021

Dollar starts Fed week on front foot, stocks hit by Evergrande fallout
Dollar starts Fed week on front foot, stocks hit by Evergrande fallout

Fears of global contagion from the worsening crisis in China's property sector continued to weigh heavily on sentiment at the start of trading on Monday as markets...

20 Sep 2021

Dollar jumps, gold slumps, stocks nervous
Dollar jumps, gold slumps, stocks nervous

Worries that the US consumer is rolling over were dealt a major blow yesterday after the nation’s retail sales for August overpowered some gloomy forecasts. The retail sales...

17 Sep 2021

Energy is the play: how we get to $100 crude
Energy is the play: how we get to $100 crude

Natural gas futures in Europe and the UK are flying, while our natural gas (NG) CFD (the underlying is traded on the NYMEX) pushed over $5.60 and into 7-year highs...

16 Sep 2021

Forex Forecasts

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta 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.