Market Analysis: The US Dollar Moves to Exponential Growth

FXOpen

Yesterday, it was possible to observe a breakthrough of important resistance levels in almost all directions in the currency market. Thus, the EUR/USD currency pair fell below 1.0760, the USD/JPY pair updated the maximum of August this year at 147.40, and the GBP/USD pair fixed below 1.2600. In the coming trading sessions, the upward trend in the greenback will likely intensify since the fundamentals for commodity and European currencies are rather disappointing.

USD/CAD

As expected yesterday, the USD/CAD pair strengthened to the important range of 1.3640-1.3660. These marks did not give in to the buyers for more than five months. It is not surprising if the price fails to pass this resistance the first time. In the case of trading above 1.3660, we may expect further growth to 1.3800-1.3900. Rebound from the current levels may return the price to 1.3400-1.3300.

Today is an important day for the Canadian currency. At 17:00 GMT+3, a meeting of the Bank of Canada on monetary policy is scheduled. Analysts predict that officials will keep the rate unchanged, which could put additional pressure on the loonie.

EUR/USD

The single European currency is inexorably approaching the May lows at 1.0600. Yesterday was quite a failure for the euro in terms of fundamentals. The Services PMI and Composite PMI for August were much lower than expected. The European currency did not receive support from the head of the ECB, Christine Lagarde. As a result, the pair tested the support at 1.0700; apparently, this is not the limit of the decline.

USD/JPY

In the USD/JPY pair, one can observe a sharp impulse growth. The important range of 147.00-146.00 is already in support status if the current situation does not change within a couple of weeks. We are waiting for a test of last year's high at 151.

Today at 16:45 GMT+3, we are waiting for data on the business activity index (PMI) in the US services sector for August. A little later, at 17:00 GMT+3, the Purchasing Managers Index for the non-manufacturing sector of the USA from ISM will be released.

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.

forex

Latest articles

USD/CAD Consolidates
Forex Analysis

USD/CAD Consolidates

In the second half of April, the USD/CAD chart has shown a decline in volatility following significant spikes observed since February.

The Canadian dollar has stabilised against the US dollar within the 1.390–1.380 range over the

Why Coinbase (COIN) Shares Are Rising
Shares

Why Coinbase (COIN) Shares Are Rising

As the Coinbase (COIN) stock chart shows, trading closed yesterday above the $200 mark — for the first time since March.

Since the beginning of April, COIN's share price has risen by nearly 20%, while the S&P 500 index

Forex Analysis

USD/CHF Rebounds from Multi-Year Low

As the charts show, the USD/CHF exchange rate fell below 0.810 US dollars per franc earlier this week. The pair had not traded this low since the 2008 financial crisis. Demand for the Swiss franc as a safe-haven

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.