Traders Tempering USD-Weakness to Wrap up the Week

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This week, the USD was generally weaker, especially after the FOMC meeting minutes were released. Interestingly though, the minutes focused on ending QE, which carries a hawkish tone. At the end of the week, we are seeing USD take back some of those losses. Let’s take a look at the USD/JPY, EUR/USD, GBP/USD.

The USD/JPY might start to find some short-term support as it closes in on 101, and the 100.75 2014-low. However, clues have been building up for a bearish breakout from 2014’s descending triangle. The EUR/USD has already been weak. It consolidated in June, but is looking at bearish continuation signals in different time-frames. The soft USD earlier in the week is now looking strong compared to the ailing euro. GBP/USD has been bullish, but it is also giving way to some USD-strength at the end of the week. Still, there is no bearish signal, and the GBP/USD is poised to continue hammering at the highs on the year around 1.7175.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.