US Dollar Index in “Flag” Trading Pattern, USDJPY Eases | IFCM UAE
IFC Markets Online CFD Broker

US Dollar Index in “Flag” Trading Pattern, USDJPY Eases - 19.11.2013

Overnight, the Aussie remained pressured against the US dollar as the RBA November 5th meeting minutes showed that the central bank could possibly further cut main rate, however later on the pair resumed its upside and rose even above previous resistance at 0.9417. The kangaroo pair is likely to continue its upside bias in the intraday however that would depend on greenback’s performance as well.


US stocks last night advanced to new highs supported by improved risk appetite as China pledged to enhance economic freedoms but then stocks retreated to close mostly flat ahead of FOMC members’ talks. Also, last night, FOMC member Dudley did not provide any clues about when asset tapering would begin leaving the greenback in uncertainty. The US dollar index was trading in 80.76/80.59 narrow range during overnight while in the H4 timeframe the index formed a falling flag pattern, signaling that is possible to continue its previously rising configuration.


US Dollar Index
US Dollar Index


The Japanese Yen found an opportunity to recover earlier lost territory against the US dollar with the USDJPY falling from recent peak at 100.40 to 99.57, weighed by retreating NIKKEI 225. We could conclude that profit taking prevails in global equity markets after yesterday’s jump on higher risk appetite due to China’s economic reform plans.


The EURUSD has been gradually rising since low at 1.3318 or since the day the ECB cut key rate to 0.25%, the pair managed to reach today at 1.3540. Later in the day, ZEW Economic Sentiment is likely to have an impact on the pair’s price path, it is expected to rise to 63.1 in November up from 59.1 the previous month. The Sterling has also been on upside momentum against the greenback in recent trading as in the previous week the UK data have been supportive. The GBPUSD drew resistance line at 1.6149 on Monday and now extends in 1.6149/1.6092 tight range.
IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

See Also

image
Follow the Market with Our Live Tools and Calendars
Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger