9/16/2021
The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just saw a slowing in inflation and an increase in retail sales which were expected to be negative this month. Both sides seem to be recovering well.
Our outlook
The USD looks like it could be the better play here because at least investors are getting hints as to approximately when the Fed will start tapering and raising rates. Lagarde said that Europe is far from recovery, but they are impressed with the pace so far. However, whatever has been said so far, it doesn't seem like investors are taking this all too well and are flocking to the USD today. The pair's general price action has also been relatively weak for the past three months.
Trade Setups
EURUSD
EU fell under its 50 DMA and is on support around 1.75400s. If price breaks this level, it could be a catalyst of another significant drop. If this level of support does not break, there could be more consolidation between this support and resistance level.
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
As we trade into a broad news week covering the economic status of multiple countries, there are several scenarios we should consider. Although it is impossible to predict the future, we can at least prepare for the news events set to come this week for kiwi, dollar and the pound. EdgeFinder Analysis GBPJPY still maintains […]
