The Dollar Is Losing Some of Its Gains While Awaiting a Verdict from the Fed


The American currency continues to trade in different directions relative to leading currencies. Thus, the yen paired with theUS  dollar fell in price to a 34-year low, and in pairs with European and commodity currencies we are seeing a corrective pullback in USD. Whether the main trends will continue, or whether it is worth preparing for a deeper corrective rollback, will be determined by the coming trading sessions:

  • today at 12.00 (GMT +3:00) inflation data in the eurozone for April will be published
  • Today at 17.00 (GMT +3:00) the US consumer confidence index from CB will be released
  • Tomorrow at 21.00 (GMT +3:00) a meeting of the Federal Reserve is scheduled, at which the base interest rate on the dollar and the regulator’s further plans for monetary policy will be announced


The single European currency has been holding above the key range of 1.0700-1.0600 for the third week. Technical analysis for EUR/USD indicates the possibility of working out a piercing line combination on the weekly timeframe, which could lead to a test of 1.0900-1.0840. A price move below 1.0600 may contribute to updating last year’s low at 1.0450.

In addition to the already mentioned news, today at 13.00 (GMT +3:00) it is worth paying attention to the speech of the Vice President of the German Federal Bank Claudia Maria Buch.


At the beginning of the current five-day trading period, the USD/JPY pair rose sharply and fell no less sharply, interrupting the exponential growth at the significant resistance of 160.00. Within a few hours, the price lost more than 500 points, testing the previously announced correction level of 154.70.

According to technical analysis for USD/JPY, a bearish harami combination has been formed on the daily time frame, the development of which may lead to the start of a full-scale downward correction for the pair. At the same time, the size of the signal candles is quite large, and the price may first retest recent extremes at 158.40-157.80.

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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.

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