Greenback Soars, Euro Back Under Pressure

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Dollar-growth

The Comeback Buck

Last Friday’s FOMC chair Janet Yellen’s hawkish remarks were a game changer for many traders who were sidelined waiting for some clearer direction.

The Greenback has made a major come back across the board as a USA interest rate hike looks like a reality before the end of the year. Even safe havens like the CHF and JPY have taken a beating against the greenback and at this time, it looks like no end in sight to the rally.

EUR/USD Parity Back On The Table

The EUR/USD pair settled near the monthly low, consolidating for most of the afternoon session in a tight range, as the market keeps waiting for clues or hints over the possibility of a US rate hike. US Non-farm Payroll report will come out this Friday, which may add fuel to Greenback’s advance, particularly if wages continue to surge.

Our EURUSD daily Trend Meter has started to switch over into the bearish direction and if Fridays report is as anticipated we believe the momentum in the direction of the USD will sustain and previous EUR/USD support levels will be under fire with parity popping up on the target board by as soon as the years end. For the meanwhile, strong support is hovering around the 1.1120 level, with a break below that level perhaps opening the door for further slides down to the August low near 1.0950.

Yen and Commodity Pairs

We see this shift in movement across the board and the recent strength in the JPY against the Greenback is also taking a lot of strain. As for the commodity pairs (the AUDUSD and USDCAD), at ForexSignal we have been fortunate to participate in their sell off of the last few days and our client base has enjoyed banking the pips as an early start to the week.

Our Trade Copier service will help ensure that all trade signals generated by our Trading Desk are received and executed in your MT4 account without you having to lift a finger. Our support team will be glad to offer support and answer any questions you may have.

 

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