Dollar Range Trading Awaits Trump's Directives
FXOpen
Following Donald Trump's inauguration, the dollar lost part of this month’s gains on Monday and adjusted to significant support levels. However, there is no clear development of a full-scale downward correction as yet. Most currency pairs remain within their previous sideways corridors, awaiting new directives from the newly inaugurated president.
USD/JPY
The USD/JPY currency pair has once again tested the important range of 155.00–154.80. The inability of sellers to hold the price below 155.00 for two weeks could lead to another test of recent highs in the 157.00–157.80 zone.
Technical analysis of USD/JPY indicates a sideways movement of the pair. At present, the price is at the upper boundary of a five-day corridor. If it rebounds from the 156.70 level, a decline towards the 155.20–155.00 marks is possible.
A consolidation above 157.00 could result in an update of the year’s maximum at 158.90.
Key events influencing USD/JPY movements:
- Today at 16:30 (GMT+2): Initial Jobless Claims in the United States.
- Today at 19:00 (GMT+2): Speech by US President Donald Trump.
- Tomorrow at 05:30 (GMT+2): Bank of Japan’s Monetary Policy Report.
- Tomorrow at 06:00 (GMT+2): Bank of Japan Interest Rate Decision.
USD/CAD
Range trading with false boundary breakouts is also observed in the USD/CAD pair. On Monday, the price updated its January low at 1.4280 but failed to develop a full-fledged downward correction and consolidate below this level. In the upcoming trading sessions, another approach to the 1.4420–1.4450 range is possible.
The nature of the price exit from the four-week range of 1.4300–1.4500 could provide more clues about the medium-term movement of USD/CAD.
Key events influencing USD/CAD pricing today:
- Today at 16:30 (GMT+2): Retail Sales Volume in Canada.
- Today at 16:30 (GMT+2): US Crude Oil Inventories.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Euro and Pound Retreat from Highs After Strong US Data
The euro and pound have pulled back from their recent highs as the US dollar regained ground following a batch of stronger-than-expected economic data. The Personal Consumption Expenditures (PCE) price index accelerated to 3.7% year-on-year, compared with expectations of
Alibaba Analysis: Uptrend Break Attempt Amid Rising AI Investment
Alibaba reported its first-quarter results on 20 August, revealing a mixed picture for investors. Revenue increased by 9%, driven by accelerating growth in its cloud computing and AI businesses, but net profit fell by nearly three-quarters as capital expenditure on
EUR/AUD: A Hawkish Euro Meets a Stubborn Downtrend
The euro is riding genuine hawkish momentum right now. It's holding above $1.165 against the dollar, its strongest level since mid-May, with markets fully pricing in an ECB hike in September following June's initial tightening move. That conviction is