The U.S. Dollar was strengthened against a basket of currencies during yesterday’s trading session and is now well positioned for a breakout from important technical levels, just on the right time ahead of the much awaited Federal Reserve policy decision and U.S. GDP figures today. Volatility peaked up during afternoon session yesterday with many technical levels challenged by U.S. Dollar pairs.
More specifically the U.S. Dollar was up against the Euro and is now trading just above the first support level on the daily chart at 1.34 and looking to penetrate through this morning to challenge lower levels at 1.3295. On the daily and 4-hour charts oscillators seems a bit oversold with RSI positioned below 30 but consensus shows that if the U.S. dollar is helped by U.S. GDP figures and German CPIs due later today then a breakout below the last levels of support is the most probable scenar
The U.S Dollar advanced against the Japanese Yen as well, clearing the Fibonacci resistance of 102.03, having reached 102.16 on Tuesday, the highest level since early July. The pair is now looking to challenge next resistance levels at 102.35 and 102.78 thereafter.
The dollar came out stronger against the Canadian counter currency during yesterday’s session and is now trading just on the Fibonacci retracement 38.20% level (September’s 2013 lows – March 2014 highs) at 1.0855. A breakout from here will open the pathway towards challenging the level of 1.0950 and 1.10 thereafter.
A quite eventful day today, with the first important data coming out at 09:00 GMT with Euro-Zone Confidence surveys and continuing with German Consumer Price Index at 12:00 GMT. Thirty minutes later U.S. 2Q GDP and personal consumption data will come out at 12:30 GMT. Later tonight at 18:00 GMT the FED will announce its policy rate decision.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
U.S. Dollar positioned for a breakout across the board
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