Home Dollar remains currency of the month for July
Daily Look

Dollar remains currency of the month for July

As we enter the last few days of July we can safely say that it’s been the dollar recovery that’s been one of the outliers of the month.   The dollar index is up almost 2%, past June’s highs and closing in on the 2014 high and it’s the euro that’s felt the brunt of this dollar buying.   Looking at a daily chart of the euro the technical picture doesn’t look all that promising with the uptrend that commenced exactly two year ago looks to be breaking down.   Having said that some indicators are signalling EURUSD is oversold so it could be prone to a squeeze back upwards as the short trade for EURUSD is quite a crowded one now.   Near term the key levels of resistance are seen at 1.3455 and 1.3485 with support seen at 1.3400.

The week starts quietly in respect of economic data but builds into a crescendo in particular from the US as we see GDP data and the FOMC rate decision on Wednesday, then nonfarm payrolls on Friday.   For today at least we do see PMI services data from the US as well as pending home sales at 14.45 and 15.00 respectively London time.   The PMI figures is due to show a decline from 61.0 to 59.8 and anything lower than this might see the EURUSD bear squeeze as mentioned above but the focus will be on the other key economic events of the week.

 

Further reading:

EURUSD: Vulnerable, Targets Further Downside With Caution

Canadian dollar crashing down – USD/CAD > 1.08

FxPro - Forex Broker

FxPro - Forex Broker

Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss.