Thursday Market Update by ForexBrokerInc

[ForexBrokerInc]

The US Dollar Index (DXY) continues its decline for the 6th consecutive day dropping below 94.50 during today’s EU session. Yesterday’s weak GDP reading and dovish statement by FED’s Janet Yellen signals that FED is far from hiking interest rates. With little to change in the current sentiment on DXY and as GBP and EUR break through some key resistance levels, markets are expected to continue disappoint the Dollar in the coming weeks of trade.

EURUSD

With quite impressive price action trading seen since the end of last week the Euro continues to pay off when bought on any retracements versus the Dollar. The pace and volumes on the break above 1.10 continues signaling that EURUSD is far from seeing 1.05 and below anytime soon. Inflation in the Eurozone within ECB’s expectations and Employment rate at ‘fairly okay’ level, well at least not increasing. Technically speaking, another bull run can be expected to test 1.13-1.1320 I next week’s trade with major support at 1.10-1.1020. Despite RSI,H4 being in overbought area, the Daily still has room to go up before climbing past the overbought mark. Traders will be looking to push the EUR higher and buy any retracements. Despite tomorrow’s economic manufacturing data releases for US, don’t expect high volatility as most EU markets are going to be closed due to Labour Day.

[Michael Howard]

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