USD Firms Ahead of Next Week’s FOMC Decision

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USD Firms Ahead of Next Week's FOMC Decision

The US Dollar was strong this week. Jobless claims came in at a 10-year low and provided fuel for the greenback. The market is also pricing in the relatively strong Q2 data so far as impetus for the FOMC to consider a rate hike before mid-2015. The FOMC will be releasing its monetary policy statement next Wednesday. Let’s take a look at the USDX, USD/JPY, EUR/USD, and GBP/USD.

The USDX looks poised to test the 2014-highs. USD/JPY is testing a falling channel resistance, and might need another kick to introduce a bullish outlook. The EUR/USD is falling sharply, and has further downside. Traders could still be looking to sell rallies. GBP/USD slid this week as the BoE minutes reveal concerns of wage growth, which might prevent a 2014-rate hike. Still the pair looks bullish in the long-term, so we should be looking for buyers around a key rising trendline.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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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.