US Dollar, EUR / USD, GBP / USD, USD / CAD, AUD / USD
- The US dollar holds support last Friday, freshly retreating from the peak of 2021.
- It’s busy tomorrow morning USD: PCE data, Fed ‘s preferred inflation measure, will be published at 8.30 ET ET and FOMC Chairman Jerome Powell will speak from Jackson Hole, Wyoming at 10 a.m. ET in a speech entitled “Economic Outlook.”
- The analysis contained in the article is based on pricing and chart formations. For more information on pricing actions or chart patterns, visit us DailyFX education section.
The US dollar has bounced through the US session today, but it is tomorrow that will attract the most attention from traders as we see the last PCE before Jerome Powell’s speech at Jackson Hole. This one or two combination may keep the USD moving, but expectations have fallen over the past few weeks about what Powell can actually say here.
At the FOMC interest rate decision in July, Powell sounded as terrible as ever, lowering inflation to 5% and instead emphasizing how far the labor market is far from the “significant further progress” the bank wants to see before the policy is relaxed. .
But a few days later, FOMC Vice President Richard Clarida sounded a little weaker, saying he could anticipate an earlier start to restrict asset purchases, and this was reflected in the minutes of last week’s FOMC meeting. participants who see 2021 will start to narrow down.
This helped the USD reach a fresh high in 2021 before prices began to turn back last Friday, and this retreat continued earlier this week as the USD is now at 92.80-92.90. DXY.
US dollar two-hour price chart
The EUR / USD distribution is falling firmly
As the USD rose last week, EUR / USD was finally able to break through a large fulcrum around the 1,1700 handle. The problem is what happened after prices fell to 1.1665 and then stopped, even as the USD continued to rise. A day later, on Friday, sellers got stuck again and prices soon went above support. 1.1750 offered another element of resistance, and although it maintained its highest level on Tuesday, it was finally traded on Wednesday, and we are now seeing some support around this previous area of resistance.
This can keep the door open to move up towards the previous resistance batch, which is taken from about 1,1800 handles that held high two weeks ago.
EUR / USD Four hour price chart
GBP / USD
GBP / USD may have some temptation for those who are tough on the USD entering Jackson Hole. What’s interesting there GBP/ USD is the fact that like EUR/ USD and many other major companies raised fresh highs / lows from last week’s USD strength – there was no GBP / USD. In fact, the slump in July remains unlimited, with around 1.3600 handles supported last week. After the USD weakness has persisted, GBP / USD 1.3750 has returned to test the region, while creating higher and lower support.
This can keep the door open for a couple of rising strategies.
GBP / USD four hour price chart
USD / CAD storage support at a key point
I watched it on Tuesday and much of the case remains the same. At that time, the main place of the table began to play in a supporting position. This support has remained since then and prices have risen somewhat. This keeps the door open for a couple of rising scenarios, especially for those with a bullish bias against the USD heading to Jackson Hole.
USD / CAD four hour price chart
AUD / USD dives back
Remaining with currency pairs of goods, AUD / USD remains attractive also in USD strength scenarios. Like USD / CAD, this strength of the US dollar was in full screen last week as the dollar rose. And similarly, as the USD withdrew this week, the overall trend also declined AUD/ USD and USD /CAD.
In the case of AUD / USD, prices rise back to the potential resistance zone obtained from the previous support. Keeping it there keeps the door open for a pair of falling trend strategies, looking for a possible move down to .7000 psychological levels that have not yet reached the 2021 trade equation.
AUD / USD daily price chart
– Written James Stanley, Senior strategist For DailyFX.com
Get in touch and follow James Twitter: @JStanleyFX